Stock Keeping Unit (SKU)

SKU definition

The Stock Keeping Unit is a unique code or number used to identify and track individual products or items in a business's inventory. The SKU is used to differentiate products based on various attributes such as size, color, model, or style to be able to manage inventory and track sales performance. 

SKU usage

Each product variant or item is assigned a unique SKU, which is used to identify and track the product throughout its lifecycle, from manufacturing and distribution to sales and customer service. This way businesses are able to maintain accurate inventory levels and prevent products stockouts or overstocking. By tracking the movement of individual SKUs, businesses can also gain insights into sales trends, ordering patterns, and customer preferences, which can inform their product and marketing strategies.

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