What is a SKU on Etsy? (And How to Create Yours)
Wondering what SKU means for your Etsy listings? Here's a plain-English guide to what SKUs are, how to create a naming system that works, and how to add them to your listings.
Last updated: April 2026
If you’re wondering what a SKU is and how it can be used on Etsy, you’ve come to the right place. This article covers what a SKU is, what it’s used for — both on Etsy and inside your maker process — and how to build a naming system that actually holds up as your catalog grows.
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What is a SKU?
SKU stands for “stock keeping unit” — pronounced “skee-yoo.” It’s a code you assign to a product so you (and your team) can identify it quickly without relying on the full product name.
In the ecommerce world, a SKU is a unique identifier for a specific item. For Etsy sellers, that means each listing — or each variant of a listing — gets its own code you can reference for orders, production, and stock management.
A SKU can be any combination of letters and numbers. The best ones are short, readable, and consistent across your whole catalog.
Here’s a quick example. Let’s say you make candles in various fragrances and sizes. Your stock list might look like this:
- Jar Candle: Medium Lemongrass
- Jar Candle: Large Lemongrass
- Pillar Candle: Large Cinnamon
- Pillar Candle: Medium Lemongrass
Reading those out loud is fine in casual conversation. But when you’re packing orders at speed, relying on names this similar is asking for mistakes. A “Medium Lemongrass” and a “Large Lemongrass” look a lot alike on a packing slip.
SKUs fix that. Add a short code to each product and your list becomes:
- JC-MED-LEM — Jar Candle: Medium Lemongrass
- JC-LRG-LEM — Jar Candle: Large Lemongrass
- PC-LRG-CIN — Pillar Candle: Large Cinnamon
- PC-MED-LEM — Pillar Candle: Medium Lemongrass
Now you can scan a code on a packing slip and know exactly what to grab. No second-guessing.
Why handmade sellers need SKUs
SKUs aren’t just for big warehouses. They’re genuinely useful at any scale, and here’s where they tend to pay off:
Multi-channel selling. If you sell on Etsy and your own site (or Shopify, or at markets), SKUs give you a shared product language. When inventory drops on one channel, you know exactly which item to update across the rest.
Production tracking. When you’re making a batch of products, using SKUs in your production notes means you always know what’s being worked on. Fewer mix-ups mid-production.
Shipping accuracy. Include the SKU on packing slips or labels. Anyone fulfilling orders — whether that’s you on a late Tuesday night or a helper — knows what’s being sent.
Inventory audits. Counting stock is much faster when every product has a unique code. You’re matching codes, not trying to remember whether “Spiced Chai” is the 4oz or the 8oz. If you’re still figuring out how much stock to hold in the first place, the guide on how much inventory to start with on Etsy covers that question in detail.
How to add a SKU to your Etsy listing
Adding a SKU on Etsy is quick. Here’s where to find the field in 2026:
- Log into Etsy and open your Shop Manager.
- Click Listings in the left sidebar.
- Click on the listing you want to edit.
- Scroll down to the Inventory and pricing section.
- Find the SKU field — it’s a text box you can type directly into.
- Enter your code and click Save and continue (or Publish to make the listing live).
If you have variants (like different sizes or colours), each variant gets its own SKU field. You’ll see them listed individually in the Inventory and pricing section — fill in a unique code for each one.
Creating SKUs for your Etsy products
There’s no single right way to create a SKU system. The important thing is picking an approach and staying consistent. Here are some practical principles:
Start with the most important attribute
Structure your code in order of what matters most for that product type. For candle makers, the format might come first (jar vs. pillar), then the fragrance, then the size:
JAR-LAVENDER-MED
Reading left to right, you can narrow down the product quickly.
Keep codes readable
A code that only you can decode isn’t useful when someone else is filling an order. Abbreviations are fine — just make sure they’re obvious. LEM for lemongrass is clear. 66 for coral pink is not (unless your whole team has memorised it).
If you need a cheat sheet pinned to the wall to read your own codes, they’re probably too cryptic.
Avoid the letter O in isolation
The letter O and the number 0 look nearly identical, especially in some fonts. If your code reads JC-0LEM, that zero is going to cause confusion. Either spell out the word (JC-OLEO) or rework the code so the ambiguity doesn’t arise.
Stick to alphanumeric characters
Avoid special characters like / > < * & in your SKU codes. They can break formatting in spreadsheets and cause import errors in inventory or accounting software. Hyphens and underscores are fine — use them to separate segments (JC-MED-LEM is easier to read than JCMEDLEM).
Use a consistent structure for every product
Once you’ve decided on your format, use it for everything. Adding new products later is much easier when you’re not reinventing the naming system each time.
Use our free SKU generator
If you’d rather not build codes by hand, try the Craftybase SKU Generator — it’s free and helps you create structured, consistent codes from your product attributes. Once generated, just copy the code into your Etsy listing.
Tracking SKUs as part of your production process
Getting your SKUs into Etsy listings is the first step. The real payoff comes from using them throughout your whole process:
Labelling: Attach the SKU to every physical product that comes off your workbench. This keeps products identifiable as they move through your studio.
Production batches: Use SKUs in your batch records and production notes. When you’re making 30 units of three different products, codes prevent mix-ups at the assembly stage.
Packing and shipping: Print or write the SKU on every packing slip. Whoever packs the order — even if it’s you at 11pm — can double-check without guessing.
Stock counts: When you do an inventory count, codes make it faster. You’re scanning or ticking off codes, not reading full product names.
Inventory software: If you use inventory and production software like Craftybase, your SKUs create a consistent link between Etsy, your production records, and your materials tracking. Craftybase syncs directly with Etsy, so when an order comes in, it automatically deducts materials and updates stock levels — and your SKUs are what ties everything together.
For a fuller look at how Etsy sellers manage inventory end-to-end — from tracking materials to running COGS reports — the Etsy inventory management guide walks through the whole system.
Frequently Asked Questions
Do I need a SKU for every Etsy listing?
SKUs are optional on Etsy, but they're worth adding if you have more than a handful of products or if you sell the same items across multiple channels. Without SKUs, keeping your inventory accurate becomes much harder as your catalog grows — especially when you have variants like different sizes, colours, or scents under a single listing.
What's the difference between a SKU and a barcode?
A SKU is an internal code you create for your own use — it's unique to your business and doesn't mean anything outside it. A barcode (like a UPC) is a globally recognised identifier registered through an official body. Most Etsy sellers only need SKUs. Barcodes become relevant if you're selling wholesale or through retail stores that scan products at a POS.
Can I use the same SKU on Etsy and Shopify?
Yes — and this is exactly what you should do. Using the same SKU for a product across all your sales channels means your inventory software (like Craftybase) can match and consolidate stock levels automatically. When a sale comes in on either platform, the system knows which product was sold and can deduct the right materials from stock without any manual data entry.
How long should my SKU codes be?
There's no hard rule, but most makers find codes in the 6–15 character range strike the right balance. Too short and you can't fit enough information in (a two-letter code won't scale as your catalog grows). Too long and they become unwieldy to read and type quickly. A format like JC-MED-LEM (10 characters) is readable, specific, and won't cause much friction.
Does Craftybase use SKUs for Etsy inventory tracking?
Yes. Craftybase syncs directly with Etsy and uses your SKU codes to match listings to products in your inventory. When an order comes in, it automatically deducts the right materials from your stock and updates your COGS — no manual entry needed. Consistent SKUs on both platforms are what makes that sync reliable, so it's worth taking a few minutes to make sure they match before connecting your shop.
Getting your SKUs working for you
The basics are pretty simple: pick a structure, stay consistent, and add your codes to Etsy listings. But SKUs start to really earn their keep once they’re woven into your whole operation — production batches, packing slips, stock counts, and your inventory software.
If your Etsy business is growing and you’re managing materials alongside finished products, Craftybase can help. It syncs with your Etsy shop, tracks stock levels by SKU, calculates your COGS automatically, and keeps everything in one place. Learn more about Etsy inventory management with Craftybase and start a free 14-day trial.
