Setu.Technology
GlossaryRetail & Inventory

SKU

Also called: Stock Keeping Unit, stock keeping unit

What is SKU?

An SKU, or stock keeping unit, is a unique code for one exact sellable variant — a specific product in a specific size, colour and pack. Two variants of the same product are two SKUs.

Why SKU matters

SKUs are the unit everything else counts in. Stock levels, reorder points, margin analysis and sales reporting all depend on being able to tell a 500 ml bottle from a 1 litre one.

How SKU works in practice

Build codes that a human can read at a glance — brand, category, size — and never reuse a retired code for a new product. Reuse silently merges two products' sales history into one misleading line.

Worked example

AMU-MLK-500 and AMU-MLK-1000 are separate SKUs for the same brand of milk in two pack sizes.

Frequently asked questions

No. A barcode is a scannable number, often assigned by the manufacturer; an SKU is your own internal identifier.

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