ecommerce
What is SKU (Stock Keeping Unit)?
A unique identifier assigned to each distinct product variant in your inventory, used to track stock levels and sales.
In plain English
A SKU is the internal product code that makes inventory management possible. If you sell a t-shirt in 3 colors and 4 sizes, that's 12 SKUs — each with its own stock level, sales history, and reorder point. Consistent SKU structures are critical for automation: they're how your e-commerce platform, inventory system, accounting software, and shipping carrier all refer to the same product. Poor SKU management is one of the most common causes of inventory automation failures.