How to Build a Meaningful SKU System for Your Etsy Shop
SKUs (Stock Keeping Units) are one of the most important tools for organizing your Etsy products and ensuring accurate grouping, cost tracking, and profit reporting inside ProfitTree.
A structured SKU system saves time, prevents data errors, and helps ProfitTree correctly match COGS, POD costs, and listing-level performance.
This guide walks you through how to create a SKU system that actually works.
Why You Need a Consistent SKU System
A meaningful SKU system helps you:
Distinguish products and variations
Track product performance across multiple listings
Group identical products in ProfitTree
Upload COGS in bulk
Avoid “Multiple COGS” errors
Ensure Printify/Printful products match correctly
Prevent missing SKU issues inside COGS Management
If you list the same product multiple times or sell multiple variations, SKUs are essential for clean reporting.
How to Build a SKU System (Step-by-Step)
Step 1: Decide What Attributes Matter Most
Choose components that uniquely identify a product, such as:
Product type
Size
Color
Style
Material
Variant option
Example components:
NECK (product category)
GLD (material)
18 (size)
Step 2: Choose a Simple, Repeatable Format
A good SKU format uses short codes in a consistent order.
Examples:
Format: Category – Style – Color – Size
NECK-GLD-18
SHIRT-BLK-LG
COLLAR-LETH-BLUE-S
Format: Base product + Variant
MUG-BLK-11oz
SIGN-WOOD-12x18
BAG-CANVAS-NAT
Avoid overly long SKUs or random strings — keep it human-readable.
Step 3: Assign the Same SKU to the Same Product Everywhere
This is a critical rule from your macros:
✔ If the product is identical → use the same SKU across all Etsy listings
✔ If the SKU is reused → COGS and sales group correctly in ProfitTree
❌ If you use different SKUs for the same item → ProfitTree treats them as different products
❌ If you use the same SKU for different items → ProfitTree will merge them incorrectly
SKU consistency = accurate reporting.
Step 4: Give Each Variant a SKU (If You Want Variant-Level Reporting)
Etsy allows variant-level SKUs.
ProfitTree relies on Etsy’s variant-level data.
If you want:
grouped variants → use consistent variant SKUs
separate profit reporting → give each variant a unique SKU
Without variant SKUs, ProfitTree displays each variant row separately.
Step 5: Add SKUs directly inside Etsy
Never add a SKU only inside ProfitTree.
SKUs must be entered in Etsy so they sync automatically to ProfitTree through the Etsy API.
To add SKUs in Etsy:
Open your listing
Scroll to “Inventory & Pricing”
Enable SKUs
Enter SKUs for each variation
Save your listing
ProfitTree will update automatically.
Using the ProfitTree SKU Generator
ProfitTree provides a free tool to help you create structured, consistent SKUs:
Free SKU Generator:
Add your real link or use the placeholder you mention in your training
How to use it:
Click the link above
Go to File → Make a Copy
Follow the on-sheet instructions
Watch the full setup tutorial below
Full tutorial video:
This generator helps you maintain consistency and avoid SKU errors.
Common SKU Mistakes to Avoid
Using different SKUs for the same product
Leaving variants without SKUs
Creating SKUs that are too long or complicated
Changing SKUs frequently
Adding SKUs only inside ProfitTree (must be added in Etsy)
Using SKUs that don’t match Printify/Printful variants
Following a structured system prevents grouping errors such as:
Multiple COGS Error
Without SKU Error
Incorrect product grouping in reports