SKU (Stock Keeping Unit)
Also known as: stock keeping unit
A unique internal code that identifies one specific product variant so you can track and reorder it.
A SKU (Stock Keeping Unit) is the internal code a business assigns to each distinct product variant it sells or stocks. Every size, colour, or material gets its own SKU. It is how your systems, your staff, and your reports refer to a single sellable item.
A SKU is not the same as a barcode. The SKU is your internal name for the product; the barcode encodes a number (often the SKU, sometimes a GTIN) so it can be scanned. Your inventory system links the two together.
Good SKUs are short, uppercase, and structured in a few meaningful segments, for example a brand prefix, a category, a variant, and a sequence number. Keep them consistent from day one, because changing SKUs later creates reconciliation problems across orders, stock counts, and integrations.
Put it into practice
Related terms
- BarcodeA machine-readable pattern that encodes a number or text so an item can be scanned quickly.
- GTIN (Global Trade Item Number)A globally unique product identifier (the number behind UPC and EAN barcodes) issued via GS1.
- Product VariantA specific version of a product (size, colour, material) that is tracked as its own item.
Run it in one system
VNDLY tracks stock, orders, and suppliers together so terms like this stop being theory and start being automatic.