Working with SKUs

Last Updated: 2023-11-26 02:25:35

SKU vs Reward (Pledge/Add-on)

For many first-time creators, there's a common confusion between the terms "SKU" and "Reward," often mistaken as interchangeable. This chapter aims to clarify each term and delve into their significant distinctions.

1. SKU

Let's kick things off by understanding the cornerstone of your entire fulfillment process: the SKU, which stands for "Stock Keeping Unit." This term is aptly named, as it's used to designate and track the units of everything you need to manage.

To grasp the essence of an SKU, consider this question: What individual items do I need to deliver to my backers? Each distinct item integral to the answer constitutes an SKU. Whether it's a digital entity, like a downloadable file, or a physical one, such as a board game or gadget, if it stands alone and requires delivery to your backers, it warrants an SKU.

For physical items in your project, any product that needs individual packaging at your fulfillment hub must be equipped with a barcode, making the creation of an SKU imperative.

In the realm of digital deliveries, every item requiring its own download URL necessitates the creation of a unique SKU. So, whether you're delivering tangible goods or digital content, the SKU serves as the linchpin for meticulous tracking and successful fulfillment.

Examples of SKUs

  • A game's box.
  • A booster pack.
  • A Ziplock bag with a barcode sticker on it (where you put various promo items from your campaign or Stretch Goals that you do not want in the box).
  • A shrink wrapped Game Mat with a barcode sticker on it.
  • A pack of sleeves.
  • A pack of packs of sleeves. If your backers need 3 packs of sleeves for their game, then you should have your manufacturer put them all in one ziplock bag and stick a barcode sticker on it. That way you lessen the amount of "picks" at the fulfillment hub, saving money. Read this article for more information on how hubs calculate last mile shipping costs.

This is how your SKU list should look like once you finish your dataentry:


2. Reward (Pledge or Add-on)

When crafting your project's rewards, you articulate the specific individual items encompassed within each one. Typically, a reward comprises at least one SKU, and possibly more.

Consider this scenario: envision your project as a board game, and you introduce a pledge named "Standard Edition" where backers receive one copy of the base game along with all the stretch goals. Here, you might encounter two options:

a) If all your stretch goals neatly fit inside the game box, you'll only need one SKU assigned to the pledge.

b) Conversely, if the stretch goals don't fit within the box and require separate packaging, you'll need to assign one SKU to the box and at least one SKU (complete with a barcode) for your stretch goals.

Examples of Pledges

  • Standard Edition. It includes one SKU for the main box, and maybe one for the Stretch Goals (if they are packaged outside the main box).
  • Deluxe Edition. It includes one SKU for the main box, one for an expansion, maybe one for a neoprene game mat, one for the Stretch Goals (if they are packaged outside the main box).

Creating an SKU

To initiate the creation of a new SKU, navigate to the SKU List page from your creator's left menu. As you embark on this process, keep the following guidelines in mind:

  • SKU Code: The value in this field must be a unique code for your company. It's advisable for this code to be memorable and easily associated with your product. For instance, if your product is named "To Glory!" with a base game and an expansion, you could use "TGL_01" for the base game and "TGL_02" for the expansion.
  • Description: provide a more detailed descriptor, such as "To Glory: Dangerous Seas Expansion".
  • Barcode: One of the most common questions creators have when defining SKUs is "Do I need a barcode for all my products"? In general the answer to this is "Yes". But let's try to define it a little bit better. When your product reaches the fulfillment hubs, and they will have to assemble the final orders/packages to send to backers, then EACH item that the hub will need to place individually in the package MUST have a barcode.
    So, if you have a ziplock bag with some Stretch Goals, that is standalone, then it needs a barcode. If you put this bag inside the game box, then it doesn't. If an item doesn't have a barcode and it needs one, the hub WILL charge you extra to add a barcode on it before fulfillment starts!
    If you are looking to purchase some barcodes, then read this article for more information and resources.
  • Dimensions and Weight: If your SKU pertains to a physical item, ensure that the dimensions and weight specified match those of a single standalone item. Note that these are not the dimensions and weight of your entire pledge, but rather of the individual item sans packaging. As such, those metrics are NOT used for the shipping costs calculation. For the shipping costs the system will use the weight assigned to each pledge, because you need to account for packaging materials like bubble wrap and packing carton.
  • MSRP (Manufacturer Suggested Retail Price): This represents the price your item might carry in a retail store. Please note that this information is required by several fulfilment hubs and will be used ONLY for those exports. The actual price you want to charge your backers should be filled in the relevant field in your Pledge and/or addon.
  • Customs Value: The customs value is the declared value for this SKU when included in a package shipped across international borders. It's crucial information for hubs involved in cross-border shipments.
  • Download URL: If this is a digital item, add the download URL where the Verified backers will be directed to go and download it. Read this article for more information on how to handle digital items.
Assigning SKUs to a Reward (Pledge / Add-on)

When defining your project's rewards in the "Rewards" tab, you can effortlessly assign SKUs to each reward, whether it's a pledge or an add-on, by clicking the "SKU" green button located below each reward.

When assigning an SKU to a pledge, select it from the list of pre-defined SKUs. This implies that you must initially establish an SKU, as explained above, before allocating it to a pledge. Additionally, you must specify a quantity for that SKU.

For instance, if you plan to provide two sets of identical card sleeves to your backers, generate an SKU for each pack of card sleeves. When assigning it to your pledge, indicate a quantity of 2.

The system will utilize the specified quantity when exporting the final information of all your backers, crucial for fulfilling their pledges (refer to the next section below).

With the exception of Digital Rewards, it's important to note that you do not need to assign these SKUs to pledges when you "Open" your pledge manager. This information becomes pertinent during fulfillment. Therefore, you can delay defining it until just before you commence manufacturing. Importantly, it is not utilized in calculating shipping costs and remains invisible to backers.

For Digital Rewards, you need to assign the SKUs before you open the Pledge Manager, because when a backer completes their pledge they can see any URLs to download their rewards.

From SKU to Addon

When you are in the SKU List page, next to each SKU you will find a button that allows you to create an addon using that SKU. This is a quick way to copy the information you have already defined in an SKU and create the base for an addon.


Clicking that button, the system will ask you to select one of your projects. When you do so, it will create a new addon in that project, using the SKU's description as the caption of the addon, the MSRP as it's price, the weight for the weight, and it will also add the specific SKU with a quantity of 1 into that addon.

Manufacturing and Fulfillment

1. Manufacturing

When gearing up for your manufacturing phase, it's crucial to determine the quantity of each SKU required to fulfill all your backers' rewards adequately.

Within your project's "Statistics", you'll discover a section titled "Sales per SKU." Here, you can observe the number of each SKU assigned to your project's rewards and how many have been selected by verified backers.

This figure represents the minimum quantity you need to produce and ship. However, it's advisable to manufacture at least 10% more to ensure a buffer in case replacements are needed. The fulfillment process is intricate and involves various third parties handling your product from the factory to the hands of the backers. In the event of unforeseen issues, having surplus stock can be invaluable for addressing replacements promptly and maintaining a positive backer experience. Being well-prepared for any hitches that may arise during the lengthy and intricate fulfillment process is essential for ensuring the success and satisfaction of your backers.

2. Fulfillment

When you're prepared to kick off the fulfillment phase of your project, it becomes essential to export the SKUs along with the shipping details of each backer in formats compatible with your designated hubs.

Navigate to the "Fulfillment" tab within your project. Depending on your fulfillment strategy, you have the flexibility to assign backers to specific hubs, organized by their respective countries. Subsequently, you can seamlessly export their information in the required format.

For more in-depth insights into this pivotal process, further details can be found in this article. This step ensures a smooth and organized transition from project completion to the efficient delivery of rewards to your backers.

Barcodes

If your are wondering where you can find barcodes for your products, then here are a couple of options that we have vetted and will work for you.

  • For Amazon: If you plan to place your products on Amazon's platform, then you will have to use a GS1 barcode. These are more expensive, they have an annual subscription fee, but they are the only ones that guarantee uniqueness and you can use them when filling for ownership disputes with Amazon. Visit the GS1 website for more information.
  • For any other use: A good idea to keep costs low is to create GS1 barcodes for your main products, and for any accessories/expansions/etc that probably will not even make it to retail, use cheaper bulk barcodes that come with the right certificate. We found the the website BarcodesTalk is a good option for them.
    BE CAREFULL: Just like other barcode services out there, they claim that you can use their barcodes in Amazon. In theory, you can, BUT they are not unique in the eyes of Amazon! This means that if another vendor has the SAME barcode but from GS1, in a dispute you will LOSE the argument. So, please do NOT use anything else other than GS1 barcodes for Amazon placements!
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