Synonyms: Inventory identifier
SKU stands for Stock Keeping Unit, which is a unique alphanumeric code used by retailers to identify and track individual products in inventory. Each SKU is specific to a particular item, including its variations like size, color, or model. SKUs help businesses manage inventory efficiently, as they allow quick identification and retrieval of products.
Key details that a SKU might represent include:
- Product category: Type of product (e.g., electronics, clothing).
- Brand: The manufacturer or brand name.
- Features: Size, color, or model number.
- Location: Where the product is stored or sold.
Unlike UPC (Universal Product Code), which is standardized for global use, SKUs are created and managed internally by a company. They help in streamlining tasks like restocking, order fulfillment, and sales tracking. For example, if a retailer sells the same shirt in multiple sizes and colors, each variation would have a different SKU.
Using SKUs effectively can improve inventory management, minimize errors, and provide insights into sales trends.