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Glossary · Operations

What is SKU (Stock Keeping Unit)?

An SKU is the unique internal stock code a business assigns to every sellable variant. Each distinction — colour, size, weight — takes its own SKU. Because it is the main key that stock, cost, sales and return data are tied to, a badly designed SKU system makes all reporting unusable.

Detail

A good SKU is readable and speaks for itself; it carries category, brand, model and variant in order. Because changing it later is very expensive, it has to be built correctly from the start. A common mistake in Turkey is using a different code on every platform in multi-channel selling; the same product sitting under different codes on your own site and on marketplace panels breaks stock synchronisation and leads to overselling. For sets and bundles, how many units an SKU contains has to be defined separately.

Example

A code in the form GML-OXF-LAC-M reads out the shirt/Oxford/navy/medium variant at a glance.
FAQ

Common questions on this topic.

How is SKU (Stock Keeping Unit) calculated?

A good SKU is readable and speaks for itself; it carries category, brand, model and variant in order. Because changing it later is very expensive, it has to be built correctly from the start. A common mistake in Turkey is using a different code on every platform in multi-channel selling; the same product sitting under different codes on your own site and on marketplace panels breaks stock synchronisation and leads to overselling. For sets and bundles, how many units an SKU contains has to be defined separately.

Why does SKU (Stock Keeping Unit) matter?

A good SKU is readable and speaks for itself; it carries category, brand, model and variant in order. Because changing it later is very expensive, it has to be built correctly from the start. A common mistake in Turkey is using a different code on every platform in multi-channel selling; the same product sitting under …

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