I'm using a USB Stick since the beginning and it worked fine for me. There are several possible pitfalls though:
1. A game install can get corrupted, in which case only reformatting the USB stick can help to remove that data. Happened to me with Giana Sisters, but was no big deal.
2. The Wii U only supports USB 2.x. While USB 3.0 Sticks are generally backwards compatible, there is no real obligation to do so
3. There are tons of counterfeit USB sticks on the market. Most of them claim to have a capacity they don't really have by using some nasty tricks with the internal logic. But if these get full, all breaks apart and you can basically trash the stick. Even big online stores like Amazon (and I don't mean the marketplace) are not immune to this.
Do you still have to blister packaging (or whatever packaging it had) where the serial and model number is written upon? I fear in your case it might be case 3, want to check that out.
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