What is SKU?

If you’re in the e-commerce world, you will notice SKU comes up alot when you’re uploading products to your e-store. That’s because SKU is a very important thing to know for your business.

SKU is short for Stock-Keeping Unit and is commonly used in warehouses. Companies with a huge amount of stock needs to barcode their inventory, and they do that by giving a name to the Stocks. The name is unique to colour, size and type.

So for example, Jane has an e-commerce store selling formal dresses. She has a new dress called “Crimson Floral Dress” and it comes in 3 sizes: S, M and L. To have a better managed inventory, she will name the product’s SKU as follows:

  • CrimsonFloral-S
  • CrimsonFloral-M
  • CrimsonFloral-L

Jane also has another dress called “Maya Love Dress” and is available in 3 colours, Red, Blue and Black. They are only available in 3 sizes, S, M and L. She will name the product’s SKU as follows:

  • MayaLove-Red-S
  • MayaLove-Red-M
  • MayaLove-Red-L
  • MayaLove-Blue-S
  • MayaLove-Blue-M
  • MayaLove-Blue-L
  • MayaLove-Black-S
  • MayaLove-Black-M
  • MayaLove-Black-L

Now, you get the drift?

SKU is easy. In fact, SKU helps you make transition between a solopreneur to a full-fledge online shop at a much faster speed. Now that you’ve understood what SKU is, it’s time to follow the following tips to improve your inventory: