SKU – Stock Keeping Unit

Definition updated on November 2023

What is an SKU (Stock Keeping Unit) and how does it uniquely identify products?

A unique identifier used by retailers and businesses to track inventory. Each SKU represents a specific product variant, such as size, color, or style. For example, in the sneaker reselling world, a size 10 red sneaker might have a different SKU than a size 9 of the same color. This system helps sellers manage their stock efficiently, understanding which items are selling well and which are not. An SKU is not the same as a model number, although it might include the model number as part of its code. The primary purpose is to differentiate products within a store or warehouse, ensuring that items are correctly priced, reordered, and analyzed for sales trends. When reselling sneakers, it's crucial to keep track of SKUs to ensure accurate listings, especially when dealing with multiple variants of the same shoe model. The SKU can typically be found on product labels or boxes, and in the context of sneakers, they can be crucial for verifying the authenticity of the shoe. Understanding and utilizing SKUs helps in organizing inventory, making informed restocking decisions, and offering a seamless shopping experience for customers.

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