Understanding SKUs: The Key to Efficient Product Tracking

What is an SKU?

An SKU (Stock Keeping Unit) is a unique identifier that businesses use to differentiate products and track inventory. Think of it as a product’s "fingerprint" within your inventory system.

Key facts about SKUs:

• Typically, SKUs are 8-12 alphanumeric characters long.
• They’re based on product characteristics like price, manufacturer, color, style, type, and size.

Why are SKUs Important?

SKUs help retailers:

• Organize inventory: Know exactly what you have in stock and where to find it.
• Simplify sales tracking: Easily identify which products are selling well.

When creating SKUs:

• Make them simple: Use a logical structure (e.g., category, color, size).
• Avoid confusion: Don’t use characters like slashes ("/") or spaces that might cause errors in software systems.