How to define your initial product range

Your first and most crucial step is to create a master list of every single item you plan to sell at launch. This isn't just a general list; it must include every variation like colour, size, or material. For each unique variation, you will then assign a special code called a SKU (Stock Keeping Unit). Getting this right is the foundation for tracking your stock and sales accurately from day one.

Why is this so important?

Defining your product range isn't just about deciding what to sell. It's about creating an organised system for your business. A detailed product list with unique SKUs allows you to:

• Track stock accurately: You'll know exactly how many blue, medium-sized t-shirts you have, rather than just how many t-shirts in general.
• Analyse sales data: You can easily see which specific variations are bestsellers and which aren't shifting.
• Prevent overselling: A clear inventory system, especially for an online store, stops you from selling items you don't have in stock.
• Operate professionally: It's the standard way businesses manage inventory and is essential if you plan to use any point-of-sale or stock management software.

How to create your product list

The easiest way to do this is with a simple spreadsheet. Follow these steps:

1. List your core products: Start with the main categories of items you will sell. For example, if you have a candle business, this might be 'Large Jar Candles' and 'Wax Melts'.
2. Break down every variation: Under each core product, list every single version you will offer. The 'Large Jar Candle' might come in different scents like 'Lavender', 'Sea Salt', and 'Sandalwood'. Each scent is a distinct product. If you were selling jumpers, you would list each available colour and size separately.
3. Build your spreadsheet: Create a spreadsheet with columns like 'Product Name', 'Variation' (e.g., Scent or Size), 'Wholesale Price', and 'Retail Price'. Each row should represent one unique item that a customer can buy.

Creating your SKUs

A SKU is simply a unique code you create for your own internal use. It helps you identify products at a glance. The key is to create a simple, logical, and consistent format.

A good method is to combine abbreviations of the product's features. For example, you could use a format like: [PRODUCT_TYPE]-[VARIATION]

Using our candle example, the SKUs could look like this:

• Large Jar Candle, Lavender Scent: LJC-LAV
• Large Jar Candle, Sea Salt Scent: LJC-SEA
• Wax Melts, Lavender Scent: WM-LAV

Once you have decided on a format, add a 'SKU' column to your spreadsheet and assign a unique code to every single row. This master list is now ready to be used to track your inventory.

Top Tip: Don't confuse SKUs with barcodes (EANs or UPCs). Barcodes are for external use and are standardised, whereas SKUs are created by you, for you. Keep your format simple and logical so it's easy to understand as your business grows.