A stock keeping unit, or SKU, is an internal identifier assigned to a distinct inventory item or product variant. It helps a business purchase, stock, sell and analyze that specific item.
What does a SKU identify?
A SKU can distinguish attributes such as product, size, color, package, model or region. Each orderable and inventory-tracked combination should have a stable identifier.
SKU vs. barcode
A SKU is created for internal use and can differ between businesses. A barcode encodes an identifier for scanning and may follow a global standard such as GTIN. One item can have both.
How should SKUs be designed?
- Keep the format consistent
- Avoid ambiguous characters
- Do not embed attributes likely to change
- Prevent reuse across different items
- Document the owner and creation rules
What problems come from poor SKU control?
Duplicates and reused identifiers can corrupt inventory, purchasing, pricing and sales history. Similar names do not substitute for a stable key.
How do variants affect SKUs?
Each stocked variant generally receives its own SKU so inventory and cost can be tracked independently. A parent product can group the variants without becoming the inventory unit.
