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What is Stock Keeping Unit (SKU)? [Video]

A stock keeping unit, which is commonly referred to as SKU, is a unique code that is assigned to each product in a stockroom. It is used to identify the price, manufacturer, and other product-related information.

What Is a Stock Keeping Unit (SKU)?

For any organization that is in the business of selling products, an SKU is an essential part of inventory management. 

SKUs are internal product inventory codes, which are made up of eight or more alphanumeric characters. They are unique to every store, warehouse, e-commerce vendor, and fulfillment center. That means that an SKU for Item A will be unique at different stores from the same retail chain.

How Do SKUs Work?

Each alphanumeric character in an SKU represents product-related information, such as price, size, style, color, and manufacturer. 

Since the codes are unique to every company, they can be customized to fit the needs of the business. For instance, the information in the codes can be …

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