Definition: SKU

What is an SKU?

SKU, also known as Stock Keeping Unit, is a unique identifier that is assigned by retailers to a specific product to distinguish it from another variant. Since they are primarily meant for internal use, each company has the flexibility to create its own SKU structure based on its specific needs and requirements. This means that even if multiple companies sell the same product, they may use different SKUs to track and manage inventory.

SKUs are represented by a string of alphanumeric characters that can be easily read and understood by humans. The specific format and composition of an SKU can vary between companies, but they generally include information that helps identify and classify the product.

For example, the SKU for a T-shirt can be "NIK-TS-S35-BLK", with each part presenting a piece of information about the product:

• "NIK": Represents the brand name or manufacturer. In this case, it means Nike.
• "TS": Represents the product type. In this case, it means t-shirt.
• "S35": Represents the product size. In this case, it means small with the numerical size 35.
• "BLK": Represents the product color. In this case, it means black.