What Are SKUs and Why Do They Matter for Your Etsy Shop?
A SKU (Stock Keeping Unit) is a unique identifier you assign to a product or product variation. In Etsy, SKUs are optional, but in ProfitTree they play an important role in how products are grouped, costs are applied, and performance is analyzed.
SKUs give structure to your data. When used consistently, they allow ProfitTree to recognize when multiple listings or variations represent the same underlying product, making profit and performance tracking more accurate and easier to manage.
Are SKUs Required to Use ProfitTree?
No — SKUs are not required to use ProfitTree.
You can still:
Track revenue and orders
View listing and product reports
Manually enter COGS
See profit calculations
However, without SKUs, ProfitTree must treat each listing or variation as a separate product. This limits grouping, increases manual work, and can reduce accuracy as your shop grows.
SKUs are optional, but they unlock the most powerful parts of ProfitTree.
How ProfitTree Uses SKUs
1. Grouping Products Across Listings
ProfitTree uses SKUs to identify when multiple Etsy listings represent the same product.
If two or more listings share the same SKU, ProfitTree groups them together.
Without SKUs, identical products in different listings appear as separate products.
This grouping is what allows you to see true product-level performance, instead of fragmented listing data.
2. Tracking Sales Accurately
When SKUs are consistent:
Sales from multiple listings roll up into a single product view.
You can see total units sold and revenue for the product as a whole.
Without SKUs:
Sales are split across listings or variations.
Product performance is harder to evaluate at a glance.
3. Assigning and Managing COGS
SKUs are the primary way ProfitTree connects Cost of Goods Sold (COGS) to products.
One SKU = one COGS value for non-POD (manual) products.
If the same SKU appears in multiple listings, the same COGS is applied automatically.
If identical products use different SKUs, COGS must be entered and maintained separately.
Without SKUs, ProfitTree can still calculate profit, but COGS cannot be reliably shared or grouped across listings.
POD note: For Print-on-Demand products, COGS is pulled from your POD provider (such as Printify or Printful). SKUs are still used for grouping and reporting.
4. Handling Variations Correctly
For listings with variations (size, color, material, etc.):
Each variation should have its own SKU if costs or performance differ.
Variations without SKUs are treated as separate products.
SKUs allow ProfitTree to distinguish between variants or intentionally group them.
This is critical for understanding which variants are profitable and which are not.
5. Improving Product Reports
SKUs directly affect how data appears in Product Reports:
Products with matching SKUs are combined into a single row.
Products without SKUs (or with inconsistent SKUs) can appear as duplicates.
Profit, margins, ROI, and trends are more accurate when SKUs are used correctly.
When Should You Use SKUs?
You should strongly consider using SKUs if:
You sell the same product repeatedly
You have the same product listed in multiple Etsy listings
You offer variations with different costs or pricing
You want clean, grouped product reports
You want to assign COGS once instead of repeatedly
If any of the above apply, SKUs will significantly improve tracking accuracy and reduce manual work in ProfitTree.
Common Issues SKUs Help Prevent
Using consistent SKUs helps avoid:
Missing or unmatched COGS
Multiple COGS entries for the same product
Duplicate product rows in reports
Incorrect product grouping
Broken product history when listings change
These issues typically arise from missing, inconsistent, or frequently changed SKUs.
SKU Best Practices for ProfitTree
To ensure accurate tracking:
Add SKUs directly in Etsy, it is not possible to add SKUs in ProfitTree
Use the same SKU for the same product across all listings
Do not assign different COGS values to the same SKU
Give each variation a SKU if it needs separate tracking
Keep SKUs consistent over time — changing a SKU creates a “new” product in reports
Use our free SKU generator
A simple, consistent SKU system is far more effective than a complex one.
Summary
SKUs are not required to use ProfitTree, but they are essential for:
Grouping products across listings
Accurately tracking sales and performance
Assigning and managing COGS efficiently
Getting clean, reliable Product Reports
If you want the most accurate view of your shop’s performance, SKUs are one of the most important tools you can use.
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: