For Business Type/s: Wholesale, Retail | Best For: Beers, Wine & Spirits, Apparel, Jewelry
SKU stands for Stock Keeping Unit. SKUs are also known as the product code and they are used to identify stock. Stock availability is easier to determine when products have SKUs.
If you are selling products it is important to set up your inventory correctly and one of the most, if not the most important, part of this setup is the product SKU.
Examples of key uses for an SKU:
Track inventory. Product variations can be easily tracked using a SKU system to determine stock availability.
Identify shrinkage. Damaged or missing items can occur anywhere along the supply chain, a solid SKU categorization enables stock transparency.
Replenish inventory. Managing inventory with SKUs means you can keep better track of your inventory levels, setting reorder points indicating when a new purchase order needs to be made.
Identify most profitable products. Tracking product variants with SKUs helps you pinpoint your best sellers, as well as the products that are underperforming.
To help you implement SKU best practices within your inventory system, we've built an SKU generator just for you!