A SKU (Stock Keeping Unit) is a unique alphanumeric code assigned to each distinguishable product sold by a company. It provides important details for inventory management.
- Every variation such as size, color, flavor etc. constitutes a separate SKU even if the base product is the same.
- Tracking inventory by SKU allows easy reordering of specific attributes without replenishing others.
- During checkout, SKUs identify precisely which items a customer is buying.
- In warehouses, SKUs are linked to barcodes for scanning and tracking stock levels in inventory systems.
- Analytics of SKU sales data provides insights into fast/slow sellers to optimize product assortments.
- Maintaining the correct number of each SKU balances having stock without excess taking up space or going obsolete.
By standardizing unique identifiers for all inventory items, SKUs enable efficient e-commerce operations and data-driven business decisions.