Stock Keeping Unit

Stock Keeping Unit – what is a SKU?

A Stock Keeping Unit (SKU) is a unique retail identifier used to accurately track products in a store’s inventory. Typically consisting of an alphanumeric or numeric code, an SKU is placed on labels, tags, packaging materials and other marketing materials to help retailers monitor the movement of products in their supply chain. SKUs are so useful for inventory management because they can contain a variety of information about the item, such as product descriptions, prices, costs and promotional data. By using SKUs, companies can greatly benefit from accurate insights into their supply chain system and better visibility into their warehouse processes.

What defines an SKU?

An SKU is an alphanumeric identifier used for inventory tracking and management in a retail store. Each individual product variant in a store’s inventory must have its own unique SKU that contains all the necessary identifiers to differentiate it, such as size, material, color, style and more. An SKU can be used to trace the sale of a particular item back to its origin, allowing stores to better determine what their customers are looking for and which items should be restocked or discontinued. In addition, an SKU serves as a fundamental link between physical goods in a warehouse and the corresponding digital records in POS systems, accounting software and e-commerce websites.

Are SKU numbers and barcodes the same thing?

Have you ever seen a barcode on a product in a store and wondered what it means? Barcodes are identifiers used to track products. They generally consist of a series of lines, numbers and symbols in different arrangements.

On the other hand, SKU numbers are also used to track items, usually items that are sold online or through special orders. Unlike barcodes, SKU numbers consist solely of numerical digits that can represent numerous characteristics of a product.

Although both terms represent identifiers for different purposes, they cannot be used interchangeably as each term is unique for its specific purpose.

Example of an SKU number

A possible SKU number would be for example: “JWA-9214-SR“.

This code identifies a specific product.

The first letters, “JWA“, stand for the brand and serve as a category for this product.

The next four numbers – 9214 – identify the type of product.

Finally, the last part of the number – SR – has something to do with the color of the product.

Differences between SKU, EAN and UPC codes

SKU (Stock Keeping Unit) codes are numbers used by stores and webshops to track products. They usually contain information about the product itself.

EAN codes (European Article Number) are a system of 13-digit barcodes that are used worldwide. EANs offer retailers a complete view of their product range based on the article numbers.

UPC codes (Universal Product Code) are identification numbers for each header product or individual product that is coded with a barcode and marked in conjunction with the checkout systems. UPCs are mainly used in North American retail.

The importance of an SKU in logistics

SKUs are an important part of the supply chain and logistics management. They help organize warehouses, storerooms and even individual store shelves. Not only do SKUs allow for easier inventory tracking, but they also make it easier to quickly locate stock or order from suppliers. In addition, SKUs provide businesses with important data – from which products customers prefer the most to when stock needs to be replenished. This helps companies better understand consumer behavior and optimize their operations to better serve their customers.

In short, SKUs ensure efficient product tracking and help companies use consumer data to make better operations and decisions.

How are SKU codes generated?

SKU codes are generated and assigned by the retailer selling the product. The code is unique to each product being sold and allows the retailer to display inventory. It is also important that the code is checked to ensure that there are no duplicate SKU codes.

The retailer can either hand-pick the number or have it generated automatically from a system.

SKU Amazon – you should pay attention to this

If you do business on Amazon, then “SKU Amazon” is an important term for you to familiarize yourself with.

It’s important to set up SKUs for your business and pay attention to them, as SKUs allow for better inventory management, price tracking and product marketing.

An effective SKU number also ensures accurate product categorization and increases the discoverability of products on Amazon.

SKUs should be chosen carefully as any change to SKUs can impact processes such as search ranking, category filtering and promotional discounts or bundles.

SKU – Conclusion on Stock Keeping Units

Stock Keeping Units (SKUs) are an important component of a company that sells goods. With SKUs, companies can track the inventory of their products to avoid duplicate entries and maintain inventory efficiency.

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