What are product codes and how should they be structured? These are common questions when setting up a warehouse for the first time. In this blog, we answer those questions.

What is a product code?

A product code is a unique number that refers to a specific product. In English, it's often called an SKU, which stands for Stock Keeping Unit. There is no standard way to create product codes, so you're free to decide how to structure them. However, it’s important to think it through in advance because changing codes later can lead to confusion.

Product codes help prevent confusion

A product code or SKU should always refer to just one product, helping to avoid misunderstandings. For example, a single product might be a "Hema women's t-shirt blue size L." The product code should also cover all options like size and color. A customer should be able to place an order using just the product code, and you should instantly know which item they mean without asking follow-up questions.

The easy way: use manufacturer product codes

If the products you purchase already have clear product codes from the manufacturer, it’s often easiest to use those. You won’t have to invent codes yourself, and the manufacturer’s codes are already printed on packaging. It also makes purchasing easier.

If you choose to create your own codes, keep the following tips in mind:

Don’t start with a zero

Avoid product codes that begin with a zero (0). Many programs, such as Excel, remove leading zeros, which can result in inconsistencies like using 00876 in one place and 876 in another. Starting with a non-zero digit prevents this issue.

Choose a fixed length

For consistency and readability, it's helpful to make all your product codes the same length, for example always 8 characters. If you use separators, always place them in the same position, like 872.87-771 and 325.65-355.

Sequential or structured codes

Whether you start with something simple like 1 and increment by one, or use structured codes, depends on your preferences. Each approach has pros and cons.

Sequential codes

You might start with A000001 for your first product and continue with A000002 for the next. This keeps things simple and chronological, showing the relative age of a product. However, this method doesn't group similar products together in lists, so sorting is better done by product name. For example, a new red version of product A000119 might become A002162 simply because it's the next available number.

Structured codes

The more common method is to use structured sequences, where elements like product category, brand, color, and size are embedded in the code. For example:

• 2 digits for the product category (e.g. 12 for pants)
• 4 digits for the product model (e.g. 4322 for G-star 301 2013 EU version)
• 2 digits for size (e.g. 04 for Large)
• 2 letters for color (e.g. NB for navy blue)

This makes the product code 12432204NB, or with separators 12.4322.04NB, which refers to the “G-star 301 pants, 2013 EU version, size L in navy blue.” This method makes sorting easier and helps your team and customers recognize patterns—for instance, knowing that 12 means pants and 04 means Large.

One downside to fixed formats is the potential for outgrowing them. For example, you might start with just one digit for size, thinking you only need 7 values, but two years later you may need more. Make sure to leave enough room for future variations.

You define your own structure since every type of product has its own characteristics and will need a different format.

Picqer supports you

In Picqer, each product code must be unique. We support any product code you can think of, up to 250 characters long, including separators and leading zeros. You can also save the supplier's product code in Picqer, in case you use a different internal code.

To enable even better integrations with Picqer, we’re introducing webhooks today. With webhooks, developers can automatically receive notifications from Picqer as soon as something changes in your Picqer account. For example, when a new picklist is added or when stock levels are updated. This way, the integrations you build using the Picqer API no longer need to check for changes every hour or day—they receive a real-time signal whenever something happens.

Using webhooks reduces the load on both your own server and Picqer’s servers, while keeping you instantly informed of updates. For example, you can send a confirmation email to your customer the exact moment a picklist is closed.

Developer documentation for the new webhooks is available in our API documentation.

Want to know more about webhooks or our API? Feel free to get in touch with us.

One of the most used features in Picqer is importing products from Excel sheets. Almost every new user starts with it, and it’s often used later to add new products to the assortment. Because imports sometimes went wrong, we have completely redesigned this feature.

New product information can come from anywhere: suppliers, your previous WMS or the Excel sheets you were already maintaining manually. Importing this data can be risky—one small mistake could mess up your entire catalog. And if you have over 10,000 products, you may only notice it too late. We wanted a new approach that minimizes the risk of errors.

That’s why we have completely revamped the product import feature. Before finalizing the import, you can now see exactly which data will be changed. This gives you the opportunity to cancel the import, correct your Excel file and try again.

As the Picqer API is being used more often and increasingly integrated into other cloud services, we are introducing API Keys today. This is a secure way to grant other apps or developers access to the Picqer API.

With API Keys, you no longer need to share your username and password to access the API. Instead, you use an ‘API Key’—a long string of characters that allows apps and developers to log in to the API. These API Keys cannot be used to log in to Picqer itself, which makes them safer.

A unique API Key for each app

You can create as many API Keys as you like. This allows you to use a separate key for each API integration, increasing security. You can give each key a custom name so you know exactly what it's used for.

Has a key been compromised or do you want to stop using a specific integration? You can easily revoke the key. You can also rotate keys regularly if needed.

Want to learn more about the Picqer API? Check out our documentation (in English) at picqer.com/api.

Starting today, Picqer lets you choose whether orders can be delivered in parts or only once all products are in stock. In addition, all backorders now include a 'priority' to ensure fairer allocation.