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Glossary · Operations

What is SKU (Stock Keeping Unit)?

An SKU is the code that identifies a product variant uniquely inside the business. Unlike a barcode, the seller defines it and it is meaningful only in their own system; the warehouse, accounting, marketplace dashboard and integration software all speak through the same code.

Detail

In multichannel selling, once SKU uniqueness breaks, overselling is inevitable. Meaningful coding, for example a brand-category-color-size order, speeds up both warehouse work and reporting, but embedding price or supplier information in the code is wrong, because those change. Opening a separate SKU for sets and bundles requires defining in the integration how component stock will be deducted; without that definition, a bundle sale does not draw down the individual stock and the records stop reflecting reality.

Example

The code NEV-CFT-GRI-200 carries the duvet cover, double, grey, 200-thread variant under a single identity from the warehouse label to the marketplace dashboard.
FAQ

Common questions on this topic.

How is SKU (Stock Keeping Unit) calculated?

In multichannel selling, once SKU uniqueness breaks, overselling is inevitable. Meaningful coding, for example a brand-category-color-size order, speeds up both warehouse work and reporting, but embedding price or supplier information in the code is wrong, because those change. Opening a separate SKU for sets and bundles requires defining in the integration how component stock will be deducted; without that definition, a bundle sale does not draw down the individual stock and the records stop reflecting reality.

Why does SKU (Stock Keeping Unit) matter?

In multichannel selling, once SKU uniqueness breaks, overselling is inevitable. Meaningful coding, for example a brand-category-color-size order, speeds up both warehouse work and reporting, but embedding price or supplier information in the code is wrong, because those change. Opening a separate SKU for sets and bundl…

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