SKU (Stock Keeping Unit)

A Stock Keeping Unit (SKU) is a unique alphanumeric or numeric code used in inventory management and e-commerce to identify and track individual products within a company's inventory. SKUs are crucial for distinguishing between similar products, such as different sizes, colors, or variations of an item. They help businesses monitor product quantities, sales, and restocking needs efficiently.

‍

Explanation: SKUs are designed to simplify and streamline inventory management. Each SKU is typically composed of a combination of letters and numbers that represent specific product attributes, such as manufacturer, product type, size, and color. This unique identifier allows e-commerce businesses to track and manage products accurately, preventing issues like overselling, understocking, or shipping the wrong item.

‍

In e-commerce, SKUs play a fundamental role in managing a diverse range of products and variants, ensuring that customers receive the correct items promptly. For example, a clothing retailer might use SKUs to differentiate between various sizes and colors of a specific shirt. This helps in maintaining an organized inventory, managing reorders effectively, and enhancing customer satisfaction by reducing shipping errors.

‍

Additionally, SKUs enable e-commerce businesses to gain insights into product performance, pricing, and customer preferences. They are particularly useful for analyzing sales data, identifying best-selling products, and making informed decisions about restocking, promotions, or product variations. Overall, SKUs are a critical component of efficient e-commerce inventory management and data analysis.

‍

In summary, SKU (Stock Keeping Unit) is an alphanumeric or numeric code used in e-commerce and inventory management to uniquely identify and track individual products. SKUs streamline inventory management, prevent shipping errors, and provide valuable insights into product performance and customer preferences. They play a crucial role in maintaining an organized and efficient inventory system for e-commerce businesses.