What is a SKU (Stock Keeping Unit)?
Understanding SKU (Stock Keeping Unit) in E-commerce
Quick Definition
A Stock Keeping Unit (SKU) is a unique alphanumeric code assigned to a specific product variant for inventory tracking and management. It helps businesses identify distinct product characteristics like size, color, and style, enabling precise stock control, sales analysis, and efficient order processing across multiple sales channels.
Understanding Stock Keeping Units (SKUs)
SKU Anatomy: Breaking Down the Code
Typical SKU Structure: [Category]-[Attribute1]-[Attribute2]-[Unique Identifier]
Example:
SHIRT-BLUE-LARGE-001
- SHIRT: Product Category
- BLUE: Color
- LARGE: Size
- 001: Unique Product Variant Identifier
Why SKUs Are Critical for E-commerce
- •Inventory Precision: Track exact stock levels for each product variant
- •Sales Analytics: Analyze performance of specific product variations
- •Efficient Ordering: Streamline purchasing and restocking processes
- •Multi-Channel Management: Synchronize inventory across different sales platforms
SKU Best Practices
Create Logical Codes
Design SKUs that are meaningful and easily decipherable by your team
Maintain Consistency
Use the same structure and attributes across all products
Avoid Duplicate Codes
Ensure each product variant has a unique identifier
Keep It Concise
Balance detail with readability in your SKU structure
SKU Tracking Challenges
- ⚠️Manual Errors: Risk of incorrect data entry and tracking
- ⚠️Complexity: Managing SKUs across large inventories
- ⚠️Integration: Syncing SKUs across multiple sales channels
- ⚠️Updates: Maintaining accuracy as product lines evolve
SKU Management in Modern E-commerce
Advanced e-commerce platforms now offer sophisticated SKU management tools that automate tracking, reduce errors, and provide real-time inventory insights.
Tools like Growth Suite can help merchants streamline SKU tracking by integrating inventory management with sales analytics, enabling more intelligent stock control and personalized marketing strategies based on product variant performance.
Effective SKU management is no longer just about tracking inventory—it's about turning product data into strategic business intelligence.
Put SKU (Stock Keeping Unit) into Practice
Ready to apply these concepts to your store? Growth Suite provides the tools you need to implement effective sku (stock keeping unit) strategies.
Other Terms in "S"
- Sales Conversion Rate
- Sales Funnel
- Sales Qualified Lead (SQL)
- Script
- Segmented Campaign
- Session Recording
- Shipping
- Shipping Customization (Functions)