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SKU (Stock Keeping Unit)

Product management1/5/2026Basic Level

A SKU is a unique alphanumeric code used by retailers to identify and track products and their variants within their inventory systems.

What is SKU (Stock Keeping Unit)? (Definition)

A SKU is a unique code that a business uses to identify and track a specific product in its inventory. These codes help companies manage stock levels and monitor sales trends accurately. While barcodes like a UPC or EAN are standard across the world, a SKU is internal. You can customize it to include details like color, size, or material. This makes it easier to tell products apart at a glance. For example, a blue t-shirt in size large has a different SKU than the same shirt in size small. This level of detail ensures you know exactly what is in your warehouse. Systems like WISEPIM use these codes to keep product data organized across different sales channels.

Why SKU (Stock Keeping Unit) is Important for E-commerce

An SKU is a unique code that helps businesses track every item in their inventory. These codes prevent common mistakes like selling items that are out of stock. If a shop sells many sizes or colors, SKUs ensure the warehouse team picks the right version for every order. Business owners use these codes to see which specific products sell best. This data helps them decide what to restock. In a PIM system like WISEPIM, the SKU is the main anchor. It connects product descriptions and images to the physical item in the warehouse.

Examples of SKU (Stock Keeping Unit)

  • 1A shoe store uses 'AD-STR-BLK-09' for a black Adidas shoe in size 9. They use 'AD-STR-WHT-09' for the white version to tell them apart.
  • 2An electronics shop uses SKUs to track different versions of the same laptop. One SKU identifies the 8GB model, while another identifies the 16GB model.
  • 3A makeup brand assigns a unique SKU to every lipstick shade. This helps them track exactly how many tubes of 'Ruby Red' or 'Soft Pink' they have in stock.
  • 4An online grocer uses SKUs to separate organic bananas from regular ones. These codes help the store manage stock levels for each type of fruit accurately.

How WISEPIM Helps

  • WISEPIM organizes all your product codes in one place. It keeps SKU data consistent across every product version and variant.
  • Connect images, descriptions, and marketing details directly to each SKU. This ensures customers see the right information for the specific item they want.
  • WISEPIM sends accurate SKU data to your inventory systems. This helps your software tools work together smoothly.
  • Set rules for how your team creates and manages SKUs. This reduces manual errors and keeps your product data clean.

Common Mistakes with SKU (Stock Keeping Unit)

  • Using inconsistent SKU formats. If you do not use a standard structure for your whole catalog, it causes confusion and inventory errors.
  • Assigning the same SKU to different products. This mistake leads to wrong stock levels and causes errors when fulfilling customer orders.
  • Making SKUs too long or complex. If codes are hard to read or remember, employees are more likely to make mistakes when typing them in.
  • Failing to sync SKUs across all systems. If your PIM, ERP, and webshop do not share the same SKU data, you will face data errors and slow operations.
  • Creating SKUs manually for large catalogs. Typing codes by hand is slow and leads to human error. It is difficult to grow your business if you do not automate this process.

Tips for SKU (Stock Keeping Unit)

  • Create a standard naming pattern for your SKUs. Use a logical order like Brand-Type-Color-Size. This helps your team identify products quickly.
  • Give every product variation its own unique code. A red shirt in size small needs a different SKU than a red shirt in size large. This prevents inventory errors.
  • Keep your SKUs short and easy to read. Warehouse and customer service teams should understand them at a glance. Include only the most important product details.
  • Manage your SKUs inside a PIM system. This automates the work and keeps your data accurate. WISEPIM helps you keep these codes consistent across all your sales channels.
  • Check your SKU list regularly for errors or duplicates. Fix any mistakes to keep your data clean. Accurate records help your business run smoothly and prevent shipping mistakes.

Trends Surrounding SKU (Stock Keeping Unit)

  • AI-driven SKU generation and optimization: Leveraging AI to analyze product attributes and sales data to suggest optimal, consistent SKU structures and automatically generate unique codes, reducing manual effort and errors.
  • Automated SKU validation and data quality checks: Implementing machine learning algorithms to continuously monitor and validate SKU data across all systems, identifying and flagging inconsistencies or errors in real-time.
  • Enhanced integration for real-time inventory synchronization: Deeper integration of SKU data between PIM, ERP, and e-commerce platforms to provide real-time, accurate inventory levels, crucial for preventing overselling and improving customer experience.
  • SKU data for personalized customer experiences: Utilizing granular SKU-level data to power more precise product recommendations, targeted marketing campaigns, and personalized website content, leading to higher conversion rates.
  • Headless commerce architectures for SKU flexibility: Adopting headless commerce setups allows for greater flexibility in how SKU data is structured, managed, and delivered across diverse frontend experiences without being constrained by a monolithic system.

Tools for SKU (Stock Keeping Unit)

  • WISEPIM: A comprehensive PIM solution for managing, enriching, and distributing product data, including automated SKU generation, validation, and synchronization across all e-commerce channels.
  • Akeneo: An open-source PIM system that helps businesses centralize and enrich product information, including the creation and management of SKUs and their associated attributes.
  • Salsify: A Product Experience Management (PXM) platform that streamlines the collection, enrichment, and syndication of product content, essential for accurate SKU management and distribution.
  • Shopify: A popular e-commerce platform that relies on SKUs for efficient inventory tracking, order fulfillment, and managing product variants for online stores.
  • Magento (Adobe Commerce): A robust e-commerce platform designed for complex product catalogs, where SKUs are fundamental for managing product variations, inventory, and sales data.

Related Terms

product information management pimproduct attributeproduct feedproduct data qualityproduct data managementinventory optimizationproduct data attributesproduct data model pdm

Also Known As

Stock Keeping NumberProduct Identifier (Internal)