SKU: Definition, challenges and explanations

A SKU, or Stock Keeping Unit, is a unique code assigned to a specific product or variant in a sales catalog. It is used to precisely identify each item, taking into account its characteristics such as size, color, or version.

The SKU is used mainly in e-commerce and inventory management to facilitate product tracking and inventory management. It is not a universal code like the barcode, but rather an identifier specific to each company.

Created internally, the SKU makes it possible to differentiate between products that are close to each other, and to have a fine management of references in a product catalog.

The use of a SKU is essential for efficient product catalog and inventory management in e-commerce. It enables precise tracking of each item, optimizing stock levels and avoiding out-of-stocks or overstocks.

The SKU also facilitates logistics, order processing and invoicing by making each item uniquely identifiable in the company's IT system.

In addition, the SKU improves the quality of customer service by making it possible to search for products quickly and reliably, thus facilitating exchanges, returns or requests for information.

Concretely, a SKU is an alphanumeric code created according to a company's own logic. It can include letters and numbers that correspond to specific product characteristics such as category, brand, size or color.

When a product is added to the catalog, it is assigned a unique SKU to ensure its unambiguous identification in the inventory management system.

This code is used in inventory management systems, e-commerce platforms, as well as in logistics departments to ensure accurate tracking of product receipts and issues.

Advantages:

• Unique product identification, facilitating inventory and order management.
• Improved accuracy in inventory tracking.
• Adaptability to the specific features of each company thanks to customized in-house creation.
• Optimization of logistics processes and reduction of errors.

Disadvantages:

• The creation of customized SKUs requires rigorous organization and can be complex.
• A poor coding system can lead to identification or management errors.
• May require team training to fully understand and use the system.

An e-commerce store selling t-shirts can assign each size/color combination a distinct SKU, for example: TSH-XL-BLK for a black size XL t-shirt.

In a shoe store, each model and size can have a unique SKU, facilitating the management of varied inventory.

Marketplaces also use SKUs to list the many variations of the same product and efficiently manage inventory at different sellers.

• EasyWeb Agency E-commerce Glossary - For a more in-depth look at catalog management and terms associated with e-commerce.
• MDN Web Docs Glossary - Reliable resource for technical definitions and general terminology.
• W3C - World Wide Web Consortium - Web standardization and best practices aligned with product data management.