Meaning of SKU
- SKU is a scannable barcode composed of alpha-numeric characters.
- It is a unique identifier code that is not regulated or standardized.
- It is usually found on product labels in retail outlets.
- The label is used to track the inventory with ease.
- It may also be applied to intangible but billable products, such as warranties.
- It is different from model numbers of the product.
- An SKU usually denotes the characteristics of the product with details like manufacturer, brand, style, colour, and size. For example, BLU-TEE-MED-CF25 denotes a blue, medium size T-shirt with manufacture code of CF25.
- An SKU is different from a Universal Product Code that is common for all sellers of a particular product.
Where are SKUs Commonly Found?
- Retail stores
- E-tailers
- Warehouses
- Catalogues – online and offline
- Product fulfilment centres
Use of Stock Keeping Units
- It is used for inventory management. This scannable system makes it easy for managers to know when to restock.
- It allows consumers to compare characteristics of similar items. This enhanced service might promote additional purchases by the customer, increasing the overall sales of the company.
- It can also be used to collect data on sales and check the profitability of the business.
- SKUs enable retailers to design advertising campaigns without interference from other vendors.
- It has made the shopping experience more efficient than before in the presence of portable scanners and the like.
- It can even be used for advertising and marketing. Many retailers advertise their SKU instead of the manufacturer's model number.
Best Practices Concerning SKUs
- Each SKU must be made unique.
- The attributes of the product must be incorporated into the SKU.
- SKUs must be kept short as long one might be difficult to process.
- Avoid the use of spaces and special characters.
- Refrain from using letters that can be confused with numbers for better readability.
