What is a stock keeping unit (SKU)? A stock keeping unit is an alphanumeric code created internally by sellers to identify, receive, and locate their product inventory (also known as “stock”). This type of code, made up of both letters and numbers, is more commonly known as a SKU (pronounced skew). Here, we’ll discuss exactly what a SKU is, why a SKU system is important, and how you can put one to work for your business. What Is a Stock Keeping Unit (SKU )? While retailers often refer to their sellable products as SKUs, in reality, a SKU is a unique code companies use to track products internally. Learn what an SKU is, how it works, and why it's important for inventory management. Find out how to create effective SKUs and avoid common pitfalls with Wise Business. What is a SKU number? A stock-keeping unit ( SKU ) number is an alphanumeric code assigned by retailers to identify and track each specific product within their inventory system. Typically 8–10 characters long, SKUs encode key product attributes—such as color, size, manufacturer, and price—enabling precise inventory management and sales analysis. SKUs are created by individual businesses and arranged so that the most important information appears first. This makes it easy for store teams ...
