A Stock Keeping Unit (SKU) is a unique identifier assigned to each distinct product or product variant in a retailer's inventory. SKUs are used to track inventory levels, manage stock across multiple locations, and facilitate order fulfillment. Unlike universal product codes (UPCs), SKUs are created internally by each retailer, meaning the same physical product may have different SKUs at different stores.
In ecommerce, particularly on platforms like Shopify, SKUs play a crucial role in inventory management and product organization. Each variant of a product—such as different sizes or colors—typically has its own SKU. For example, a t-shirt might have SKU "TS-BLK-M" for a black medium and "TS-BLK-L" for a black large. This granular tracking enables precise inventory counts and reorder alerts.
For data analysis and competitive intelligence, SKUs help identify unique products across a brand's catalog. They can reveal patterns in product naming conventions, indicate how brands structure their product lines, and help track specific items over time for price history analysis. Well-organized SKU systems often follow patterns that can provide insights into a brand's merchandising strategy.