SKU (Stock Keeping Unit)

Definition

A Stock Keeping Unit (SKU) is a unique alphanumeric code assigned to a specific product and its variants by a retailer for inventory management purposes. Unlike a universal product code (UPC) or European Article Number (EAN), which are standardized for external use, a SKU is internal to a business and can be customized. It typically includes information about the product's attributes, such as color, size, material, or packaging, allowing for granular tracking of stock levels, sales, and purchasing trends for each specific item variant. For example, a t-shirt available in 'red, large' and 'blue, medium' would have two distinct SKUs.

Why It's Important for E-commerce

SKUs are foundational for efficient e-commerce operations. They enable accurate inventory management, preventing overselling or stockouts. For businesses with extensive product catalogs and variants, SKUs ensure that the correct product is picked, packed, and shipped. They are also crucial for analyzing sales performance at a granular level, facilitating purchasing decisions, and optimizing product assortment. In a PIM context, SKUs serve as a primary identifier, linking product attributes, media, and marketing content to specific inventory items.

Examples

• A shoe store assigns 'AD-STR-BLK-09' to an Adidas Stan Smith, black, size 9, and 'AD-STR-WHT-09' for the white version.
• An electronics retailer uses SKUs to differentiate between a laptop model with 8GB RAM and the same model with 16GB RAM.
• A cosmetics brand uses SKUs to track different shades of lipstick and their corresponding inventory levels.
• An online grocery store uses SKUs to manage quantities of fresh produce, ensuring unique identifiers for organic bananas versus conventional.

How WISEPIM Helps

• Centralized SKU Management: WISEPIM helps organize and manage complex SKU structures across all product variants, ensuring consistency.
• Accurate Product Data Linkage: Link rich product attributes, media, and marketing content directly to specific SKUs for precise product representation.
• Streamlined Inventory Integration: Facilitate seamless integration with inventory systems by providing accurate and consistent SKU data.
• Enhanced Data Governance: Enforce rules for SKU creation and management, reducing errors and improving data quality for all product variants.

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