Ecommerce

SKU

Stock keeping unit: a unique code a business assigns to each distinct product or variant it sells.

By Nick Irmo · Updated

What SKU means

SKUs keep inventory, orders and reporting accurate across your website, warehouse and accounting tools. A clear SKU scheme makes integrations and catalog migrations far easier. Messy SKUs cause messy data everywhere else.

Why it matters for your website

Clear SKUs keep inventory counts accurate, which prevents overselling and missed restocks. They also make it easier to connect your store with shipping, accounting and marketplace tools without mix-ups.

Example

A hypothetical T-shirt shop gives each size and color its own SKU, like TEE-BLU-M, so staff always pick the right shirt.

Tips

  • Use a simple, readable pattern that encodes product, color and size.
  • Give every variant its own SKU, not just the parent product.
  • Avoid letters and numbers that look alike, such as O and 0.

Common mistakes

  • Reusing an old SKU for a new product and confusing sales history.
  • Confusing your internal SKU with the manufacturer's UPC barcode.

Questions about SKU

What is SKU?
Stock keeping unit: a unique code a business assigns to each distinct product or variant it sells.
What is the difference between a SKU and a UPC?
A SKU is your own internal code and can be anything you choose. A UPC is a standardized barcode number that identifies the same product across all retailers.
How do I create SKU numbers?
Pick a consistent format that starts with a product code and adds key details like color and size. Keep them short, unique and free of spaces or special characters.

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