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Stock keeping unit

What is a SKU (stock keeping unit)?

A SKU (stock keeping unit) is a unique code a store gives each product variant it sells, so it can track inventory and sales for that exact item.

A real store example

KindTail Pee PAWD page: over 20 Meta ads linked here.

The page sells a pad holder alone and as a bundle with 150 charcoal pads. Each option is its own SKU, so the store can count stock and sales for the bundle separately from the holder.

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Getting SKU right

  1. Make codes readable

    A SKU like TEE-BLK-M tells staff what it is at a glance. Avoid codes that only a spreadsheet understands.

  2. Give every variant its own SKU

    Each size, color and bundle needs a code, or you can't see which one is selling.

  3. Prune slow SKUs

    Every SKU ties up stock and page space. Review the slowest sellers each quarter.

Ask Replo: "list SKUs that sold fewer than 10 units last quarter".

Find slow SKUs

Or work it out with the sell-through rate calculator.

SKU questions

What's the difference between a SKU and a UPC?
A SKU is your own internal code, set however you like. A UPC is a standard barcode number registered with GS1 that's the same in every store. Retailers and marketplaces often require UPCs; SKUs are for you.
Does each variant need its own SKU?
Yes. If a shirt comes in three sizes and two colors, that's six SKUs. Without a code for each one, you can't tell which variant is selling or which one to restock.
Can two products share a SKU?
They shouldn't. A shared SKU merges their stock and sales, so you lose track of both and may sell one that's out of stock. Give bundles and gift sets their own SKU too.

Related terms

Browse the glossary

GMV

GMV (gross merchandise value) is the total value of goods sold through a store or marketplace before fees, returns and discounts.

Upselling

Upselling is offering a customer a bigger, better or more expensive version of what they're already buying.

3PL

A 3PL (third-party logistics provider) stores your inventory and picks, packs and ships your orders for a fee.

Shopify metafields

Shopify metafields are custom fields that store extra information on products, collections or customers, such as ingredients, dimensions or care instructions.

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