SKU
Stock Keeping Unit
E-commerce
A unique identifier assigned to each distinct product and variant, used for inventory management and tracking.
What is SKU?
A Stock Keeping Unit (SKU) is a unique alphanumeric code assigned to each product variant for inventory and tracking purposes.
SKU best practices:
- Logical naming convention
- Include key attributes (size, color)
- Keep consistent format
- Avoid special characters
- Make scannable
Example SKU structure:
BRAND-CATEGORY-COLOR-SIZE
TSH-BLU-LG = T-shirt, Blue, Large
SKU vs other identifiers:
- SKU: Internal inventory code
- UPC/EAN: Universal barcode
- ASIN: Amazon identifier
Example
For example, a shirt that comes in 3 colors and 4 sizes is one product with 12 variants, and each variant gets its own SKU, such as TSH-BLU-LG. When a large blue shirt sells, inventory for that exact SKU drops by one, so the store knows precisely what is left to sell.
Why SKU Matters
Proper SKU management is essential for inventory accuracy and operations.
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