Meaning Of Stock Keeping Unit – Stock Keeping Unit (SKU)

looking for the Meaning Of Stock Keeping Unit, here it is. Stock Keeping Unit otherwise known as SKU for short is a term that is common to people and covers all specific details about a product, like size and color.

Now, note that stock keeping units are not synonymous with UPC bar codes, but rather it is an internal code that each business can create for itself.Stock Keeping Unit


What is the Stock Keeping Unit (SKU)? – Meaning Of Stock Keeping Unit

Stock Keeping Unit, also known as SKU is a bar code that can be scanned and is most often seen displayed across product labels in a retail store. This label comes in handy when vendors want to automatically track the movement of inventory. An SKU is made up of an alphanumeric combination of about eight characters. SKUs can also be applied to intangible but billable products, like units of repair time in an auto body shop or warranties.

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You can decide on your system of assigning SKUs to your products, but just be sure that you are consistent and make it one that can be recognized.

How Stock Keeping Units (SKU) Works

Stores, catalogs, e-commerce vendors, service providers, warehouses, and product fulfillment centers offer SKU to track inventory levels. It helps managers to determine which products need restocking, especially if they are scannable SKUs.

If a customer purchases an item at the point-of-sale (POS), the SKU is scanned while the POS system instantly removes the item from the inventory and records other data like the sale price.

Businesses create different SKUs for their goods and services, and SKUs should not be confused with model numbers, even though businesses may put model numbers within SKUs.

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Advantages of Stock Keeping Units

  • Stock Keeping Units enables shoppers to compare characteristics of the same items.
  • It may trigger additional purchases by the customer, and ultimately increase a company’s revenue.
  • It also enables data to be collected on sales.
  • Retailers can use different design advertising campaigns without interference from other vendors.
  • Stock Keeping Units can also be used for units of repair time units, services, and warranties.

Where is the Stock Keeping Unit Used?

You will most likely find Stock Keeping Units in use in the following places:

  • Catalogs
  • Product fulfillment centers
  • Warehouses
  • E-tailers
  • Retail stores.

How are Stock Keeping Units Formed?

Most companies create their systems for creating unique SKUs, but generally, there’s a specific method involved. But then, there is no particular way of creating an SKU, but companies that want to develop their system should do so by having a method that everyone will be able to follow and understand, to make it easy to decipher the code.

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Note that Stock Keeping Units are easily readable, thus humans can easily read SKUs, and you don’t need a piece of equipment to read one. It’s that easy.

About Chris Git

I am an SEO person with over five years of experience. I am mostly into product lunch and review. I feed on tech, Dring Tech, and Dream tech. My hobby is knowing how everything works. You are welcome to my world of content development and product review at I am also a financial analyst with an organization. It has been my sincere interest to help people solve their issues on credit cards. There are lots of questions in the mind of many credit card users. These range from which credit card is best? How many credit cards should I have?

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