What Are SKUs and Why Do They Matter for Your Etsy Shop?
A SKU (Stock Keeping Unit) is a unique identifier that you assign to each product or product variation. SKUs help ProfitTree recognize your items accurately across Etsy listings, variants, and orders.
Using SKUs gives you consistency and structure across your entire shop and ensures ProfitTree can calculate your profit correctly.
Why SKUs Are Important in ProfitTree
SKUs impact several parts of your ProfitTree account:
1. Profit Tracking
ProfitTree uses SKUs to determine which orders belong to the same product.
If the SKU is missing, COGS cannot be assigned correctly.
2. COGS Tracking
If two Etsy listings use the same SKU, ProfitTree groups them and applies the same COGS.
If SKUs differ for identical products, COGS must be entered separately.
3. Sales Tracking
SKUs allow ProfitTree to combine sales from multiple listings that represent one product.
4. Variant & Listing Grouping
If a listing has multiple variants but no SKUs, ProfitTree cannot group them and they will appear as separate rows in your product reports.
5. Avoiding Errors
SKUs prevent issues such as:
Missing SKU Error
Multiple COGS Error
Products that cannot match to COGS history
Incorrect grouping in product and listing reports
These behaviors come directly from the official SKU macros.
When Should You Use SKUs in Etsy?
You should use SKUs if:
You sell the same product repeatedly
You offer personalized options but the base product is the same
You have the same product listed in multiple Etsy listings
Your products have different or identical product costs that need to be tracked accurately
You want to group your results inside ProfitTree rather than seeing duplicates
If the answer to any of the above is yes, SKUs will significantly improve your shop’s tracking accuracy.
SKU Best Practices
To prevent errors and ensure accuracy:
Use one consistent SKU for the same product across all Etsy listings.
Never enter different COGS for the same SKU.
Add SKUs inside Etsy, not only inside ProfitTree.
Every listing variation should have a SKU if you want it grouped.
If you have no SKUs, ProfitTree will treat each variant as a separate product row.
This aligns with:
Listings & Product Reports macro → SKU grouping logic
Profit Tracking macro → grouped sales behavior
How to Set Up a SKU System for Your Etsy Shop
Step 1: Get your free SKU generator
Create consistent SKUs using our free template.
Step 2: Make a copy
Click File → Make a copy to save your own editable version.
Step 3: Watch the setup tutorial
Video walk-through: