SKUs

SKU is the acronym for Stock Keeping Unit, a unique identifier retailers or manufacturers place on their products to help distinguish them from each other and keep track of their inventory. They’re commonly expressed by alphanumeric codes, between 8 – 12 characters, and highlight a product’s features. For example, if a retailer sells a variety of T-shirts, they could have it identified as TSHRT-BLK-L. TSHRT signifies it is a T-shirt, BLK reveals its color is black, and L indicates its size is large.

Businesses benefit from SKUs for several reasons, such as refining inventory management and enhancing regulation and optimization by making it easier to distinguish between different products, which in turn improves the customer experience and ease of navigating through many products.

SKUs require commitment and effort to maintain their systems. Creating and managing SKUs can be time-consuming, however, consistently reviewing the system and creating and adhering to guidelines set up by the organization can help support SKUs in a business.

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