SKU Meaning & Examples
Definition
SKU (Stock Keeping Unit) is a unique identifier assigned to each product in a store’s inventory. It helps track stock levels, variations (like size or color), and manage inventory efficiently.
Good or Bad?
Good, when SKUs are clear, consistent, and easy to manage across the store.
Bad, when they are confusing, duplicated, or not used at all, leading to stock errors.
Why does it matter?
Because SKUs make it easier to organize, track, and restock inventory.
They also help in reporting, sales analysis, and improving order accuracy.
Common Mistakes
- Using random or inconsistent SKU formats.
- Assigning the same SKU to multiple products.
- Not using SKUs for variations, making stock tracking difficult.
- Overcomplicating SKUs with unnecessary details.
How to Improve It?
- Use a consistent format that’s easy for your team to understand.
- Include product attributes like category, size, or color in the SKU code.
- Ensure every product and variation has a unique SKU.
- Integrate SKU tracking with inventory and reporting systems.
Recommended Plugin
EAN and Barcodes for WooCommerce by WPFactory.
This plugin helps generate and manage SKUs, barcodes, and product identifiers, making inventory tracking more accurate and efficient.
Real-World Example
A WooCommerce clothing store assigns SKUs like “TSHIRT-BLK-M” for a medium black t-shirt. This makes it easy for staff to track stock, manage variations, and avoid fulfillment errors.
Related Terms
- Inventory Management
- Supply Chain
- Order Fulfillment
- Product Variations
FAQs
Is SKU the same as a barcode?
Not exactly. A SKU is an internal identifier created by the store, while a barcode is a standardized code used universally.
Do WooCommerce stores need SKUs?
Yes. Even small stores benefit from SKUs for better inventory control and reporting.
Can customers see SKUs?
Yes, many stores display SKUs on product pages for easy reference, but it’s mainly an internal tool.
