Stock Keeping Units (SKUs)

A Stock Keeping Unit (SKU) is a unique identifier assigned to a specific product or item in a retailer’s inventory. It helps businesses track, manage, and organize their stock efficiently by distinguishing different products, sizes, colors, or variations. For example, a blue, size medium T-shirt might have a different SKU than a red, size large T-shirt. SKUs streamline inventory management, making it easier to reorder stock, analyze sales, and prevent errors. Essentially, SKUs serve as a product’s unique fingerprint within a company’s system.