SKU
A SKU (stock keeping unit) is a store’s internal code identifying one specific sellable variant of a product.
What a SKU is
A SKU, or stock keeping unit, is a store’s own code for one specific sellable variant: this shirt, in blue, in medium. Change the color or size and it’s a different SKU.
SKUs are internal. Barcodes and manufacturer codes identify products globally; the SKU identifies them in your system.
Why SKUs matter
Everything operational hangs off them: stock counts, reorders, picking, reporting. Ask which products make money or which sizes stock out, and the answer is a SKU-level report.
Building a workable SKU system
- Encode what you filter by: category, color, size
- Keep codes short, consistent, and human-readable
- Avoid characters that break spreadsheets and scanners
- One variant, one SKU, no reuse after retirement
Frequently asked questions
How many SKUs is too many?
When variants stop earning their storage. Every SKU adds counting, space, and forecasting load; pruning slow variants is regular hygiene, not failure.
SKU vs barcode: what’s the difference?
The barcode is a universal product identity printed on the item. The SKU is your internal handle for tracking it. One product usually has both.