Barcode and SKU: the success actors of your e-commerce!

So, your e-commerce brand is growing more and more, and you are making more and more orders and planning to outsource the logistics? This is the right time to develop an identification system! Yes, but you can't help but ask yourself the question: "is it really useful for me to generate different barcodes"? "Do I really need to create SKUs for my products?". And above all: "How can I implement them correctly in my company?". Between traceability, stock management, code generation and logistics, we will tell you all about the magic behind these series of numbers!

By
Julie Ribeiro
Created
October 8, 2020
Modified
October 9, 2020

The barcode and SKU guide for high-speed e-commerce!

SKU and e-commerce barcode: what is it?

SKUs and barcodes are 2 means of identification of a wide range of products which allow an almost perfect traceability (which is necessary nowadays):

  • SKU: Stock Keeping Unit of its real. The SKU is a way of identification at the level of your company.
  • Barcode: it is often used in the retail world and in large-scale e-commerce. It is used to identify a product from the moment it leaves the factory until it arrives at the end customer's premises.

But what are the specificities and above all the usefulness of these 2 e-commerce identification codes?

Barcode designed by Steve Simpson

SKU and Barcode: the identification tools of e-commerce

Between SKUs and barcodes, the heart of e-merchants swings. But these 2 identification techniques are not the same and can be combined. 

What is a SKU?

An  SKU is a unique reference that allows the simple identification of products thanks to a sequence of numbers and letters structured in the same way. This reference is generally used internally and on various inventory management tools.

Some fields such as cosmetics manage their stocks thanks to SKUs and batch numbers. The SKU will then correspond to the product itself (e.g. red nail polish), and the batch number (e.g. manufactured on 25/09) will identify the product in case of a problem with the item.

Bigblue Tips: Assign your own SKU
You may have noticed that your supplier or manufacturer also uses product identification numbers: the UPC, or Universal Product Code for Intimate). Reusing them can be quite tempting, but we advise you to assign your own SKU to avoid mistakes if one day your supplier changes this number. 

What are barcodes used for in e-commerce?

Every day, more than 6 billion barcodes are scanned worldwide... Since its entry on the market in 1974, the barcode has become an essential in all physical stores to identify and track each product. But then, why use them in e-commerce?

The primary purpose of barcodes is the traceability of products in absolutely all sectors. This small, striated code allows us to identify a product in circulation, whether it is being sold or bought. It is enough that it is scanned to release all the stored information. For example, let's imagine that you sell red nail polish. Wherever your product is inFrance, your red nail polish will be recognized and identified!

Still not convinced?

Let's imagine that the sales of your nail polish e-commerce explode: you will not be able to store, prepare and send 200 orders by hand and you will have to outsource your logistics. And, to work with a logistician, you need barcodes! 

If you decide to outsource your logistics, you will have to find a way to keep an eye on your stock: using barcodes will allow you to manage the flow of goods remotely. Your stock of goods is updated in realtime each time a product is sold or returned. No more need to count them by hand every morning!

There are several types of barcodes to adapt to your needs. For example, it is possible to manage other information such as product batches using a GS1 128 barcode. In this case, a unique sequence of numbers per batch is added at the end of the product-specific barcode (in all these numbers, you will find the expiration date).

GS1 128 barcode

The barcode is your best ally. It ensures the traceability of your products and reduces human input errors!


The creation and management of barcodes and SKUs

Knowing the usefulness and characteristics of each identification method is the first step. We will now guide you on the implementation within your e-commerce.

How to create SKUs compatible with your logistics?

The SKU will allow you to internally follow your products: stock, delivery... It is possible to generate an e-commerce SKU manually or by generators. In any case, if you choose to do it yourself, here are some tips you can consider:

Create a SKU
The numbers and letters of the SKU:

When creating your SKU, you can personally choose the numbers and letters that will compose it. But keep in mind that it is a reference that must be logical and simple to understand by humans, especially the members of your team.

It is preferable to avoid 0's and 1's, which can be confused with O's and I's. In the same way, special characters (&, #, @,"...) can be misread by machines and make your SKU unusable, so the ideal is to use only alphanumeric characters.

Of course, you are allowed to use dashes to divide your SKU according to attributes. As with Red 46: VRN-RGE-046, which can be read by category-color-size. A mnemonic for humans and easy for computer systems!

What length for a SKU?

Shopify advises e-merchants not to exceed 16 characters, but rather to stay between 8 and 12. And even between 4 and 8 characters if you don't have a lot of references. At Bigblue, we use a sequence of 14 characters separated into 3 parts. 

Is it possible to have one SKU for several products?

If your SKU starts to group several items together, it loses all its usefulness within your company. The whole point of SKUs is to save time! If you group the red varnishes all together without making a difference between the different shades of red, it can be complicated to make a precise inventory count. Hello mess! 

For example, making the collections appear in the SKUs can be interesting. Let's start again with our friend the red varnish: if he belongs to the fall-winter 2020 collection, his SKU could be VRN-RGE-046-AH20 in order to differentiate him from the others

Is It possible for this to be done automatically?

Of course, you don't have to do everything by hand!There are SKU generators like SKUGen for e-merchants on Shopify, or Skugenerator for Gorgias users.  

The use is simplified to the maximum: you just have to fill in the information about your products (size, color, gender...), and the generator gives you a ready-to-use SKU!

How to generate an EAN code?

Barcode

It is possible to generate a barcode or an EAN code in 2 different ways: in an officially recognized way on all physical marketplaces and stores or in a fast and free way to understand the process.

The GS1 platform

There are 3 main families of barcodes. The most common in Europe is the GS1 EAN 13 which belongs to the large family of one-dimensional or linear codes and contains 13 digits.

As an e-commerce brand, to make sure that your barcodes are recognized and unique to your product (which is essential if you want to sell on marketplaces for example) you can generate them on the official website of GS1, the worldwide organization that generates barcodes for many countries (France, Belgium, the US...). 

To be able to generate barcodes on this site, you must become a member. Membership is quite simple and fast to make, and is divided in 2 steps:

1. The membership in itself: fill in the information requested about your company (KBis, Code Naf...), and pay the membership fee. The latter is calculated according to your turnover and your field of activity. Once this membership fee is paid, you will have to pay an annual license each year.

GS1's french rate

2. Once you are a member of GS1 and have your company code, you can generate your barcodes yourself! The next step is the referencing of your products, either 1 by 1, or by means of a .csv file that groups them all together. 

Finally, you only have to put your barcodes on your products, either by having it printed directly onto your packaging, or by adding it thanks to a label glued or hung on your product.

A low-cost solution?

If you don't want to sell in supermarkets or on a marketplace (Amazon for example...), you don't have to go through GS1 to obtain barcodes. There are free barcode generators on the internet. But by going through this solution, there is no guarantee that the barcodes obtained are not already linked to another product in France or abroad. 

What if, in addition to identification and traceability, you could use the barcode as an aesthetic element? And yes, a barcode on an item is not necessarily ugly: it can even be a plus for your packaging and wrapping. It's all a question of perspective. 

Barcodes Designed by Steve Simpson
Bigblue Tips: Style your barcodes! Designer Steve Simpson has found many ways to integrate the EAN code into the product, in an elegant and graphic way. The idea is no longer to hide it, but to assume it and design it!

 

That said, this graphic dimension of the barcode does not work with all products. In this case, sewing a barcode on the leg of yoursize 46 blue pants  is not exactly the idea of the century... Or is it a new fashion, who knows!

SKU and e-commerce barcode: no more confusion! 

As soon as you start an e-commerce activity, it is recommended to generate SKUs for all products. This unique number will allow you to facilitate one of the 3500 tasks of your day as an e-merchant. 

Once your business grows, SKUs are no longer enough. If you want to sell to a larger audience such as in supermarkets, for example:the barcode becomes indispensable. Whether it is for carriers, suppliers, your future logistician in charge of the whole procedure and coordination...

Not working with barcodes can become an obstacle to the smooth running of your business. So, to allow yourself to expand as much as you deserve, how about switching to barcodes? Now you have all the keys to get started!

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Julie Ribeiro
Marketing specialist and content writer at Bigblue.
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