Back to Glossary

SKU

What Is SKU?

Stock Keeping Unit is a code that comprises alphabets and digits and is imprinted on the tags or labels of products that you find in brick and mortar retail outlets. It is scannable and carries vital information on the item including the manufacturer, its specifications, price, and many more.

How SKU Works

  • They classify and differentiate items.
  • Retailers need to generate this number for each of their products through a POS system. An inventory management program would still work fine.
  • The information they include is based on the item’s manufacturer and its characteristics.
  • Sellers will assign each merchandise its unique code, integrating this information into the inventory management and POS software.
  • They can then scan this code when selling to manage and track the store’s inventory.

What Are SKUs Used For?

These codes will benefit your business in the following ways:

  • For analytic purposes, allowing vendors to identify goods that sell fast and those that are consumers’ least favourite.
  • Helps companies keep tabs on their business inventory. That way, they know when to order additional products or terminate a supply order.
  • Elevates consumer support as shop attendants can scan the code to see products in stock that the consumer might fancy.
  • Online marketplaces can leverage them to present product recommendations to potential buyers.

What Do SKU Numbers Mean To Retailers?

Retailers can enjoy improved visibility into their inventory, providing insights that may influence key business decisions. Business people can find products by SKU, know how many of them are in stock, where they are located, and how many need to be ordered.

Besides, when consumers need various products, your staff can look them up to see the availability of what they want. This also equips them with information on other alternatives that they can recommend to them, amplifying sales.

Tips for your SKU naming convention

  • Use alphabets and numbers and ensure they are between 8 to 12 characters long.
  • The first character should preferable be the manufacturer’s initials.
  • After inputting these initials, you can put numbers or letters that represent product characteristics that are popular with consumers – those they are keen to consider first when shopping.
  • Avoid complex formats to ensure your staff can eventually learn how to read stock numbers even without a scanner.
  • Stay away from using special characters. The same applies to the number zero.

Frequently Asked Questions About SKU

SKU vs.UPC : What’s the difference?

The various difference between these two terminologies are:

  • SKUs are unique to a business and are determined by the retailer while UPCs are global and issued through GS1.
  • SKUs are a combination of digits and alphabets and are 8 to 12 characters long while UPCs are strictly 12 digits long (no alphabets).

Can two products have the same SKU number?

No. Each product has its special code, depending on its characteristics.

How to create SKU numbers?

There is no pre-defined process of how to create them. Every business needs to identify its distinctive but simplified architecture as to how to go about it. However, make sure you tailor it to the individual needs of the business and its consumers.

How PIM software can help to manage SKUs?

PIM software can handle lots of SKUs at a go, automating the entire process to avoid data discrepancies that might hurt business operations. By eliminating manual processes, consumers can enjoy efficient services.

You May Find It Interesting

Gepard PIM AI Mapping Feature

Product Data Mapping: Framework, Automation & Best Practices

Discover what is product data mapping and how Gepard helps automate it. Learn frameworks, tools, and AI-powered solutions for eCommerce success.

Read more
How to Cut EU Chemical Regulations Compliance Time by 90%

How to Cut EU Chemical Regulations Compliance Time by 90%

Automate REACH, CLP & SCIP compliance with Gepard ECHA Connector. Cut risk, reduce manual work & ensure EU chemical regulation readiness.

Read more
Gepard PIM Product Updates July
3 min read
Gepard Updates

Gepard PIM Product Updates July 2025: Product URL Scraping and More

Our Gepard PIM summer release emerges from a structured development cycle underpinned by thorough technical reviews and measured iteration.

Read more
NEW EPREL CATEGORIES: HOW BRANDS DEAL WITH IT

The EPREL “Gotchas” we’re Already Seeing (and How Teams are Fixing Them)

Learn how brands adapt to the NEW EPREL categories: smartphones/tablets labels, PIM workflows, QR links, audits, fines.

Read more
Gepard Deepens Partnership with Fucida
2 min read
Gepard Updates

Gepard Deepens Partnership with Fucida

The extension equips Fucida with a single, cloud-native backbone for listing, validating, and enriching thousands of SKUs on every present and future Amazon storefront.

Read more
Gepard PIM new Partnership with SOLMAD
2 min read
Gepard Updates

Gepard PIM Announces new Partnership with SOLMAD

Gepard is excited to welcome SOLMAD, an innovative European lighting manufacturer, to our growing community of brand partners.

Read more
Gepard Product Updates [June]
4 min read
Gepard Updates

Gepard PIM June 2025 Product Updates: Smarter Content, Faster Pipelines

Explore Gepard product updates: AI-powered multilingual content, one-click URL scraping, pipeline builder, stability boosts.

Read more
PIM Scalability Issues: Your PIM Shouldn’t Hold Your Business Back

Scalability Issues: Your PIM Shouldn’t Hold Your Business Back

Is your PIM slowing you down? Learn how to scale your product data management and future-proof your eCommerce growth with Gepard PIM.

Read more
Convert Your Product Data From PDF to JSON for Free
2 min read
Gepard Updates

Convert Your Product Data From PDF to JSON for Free

Convert product data from PDF to JSON for free! Save time, reduce errors & streamline listings. Fast, easy tool for retailers, brands & developers.

Read more
​​Gepard PIM: May 2025 Product Demo Recap
3 min read
Gepard Updates

Gepard PIM: May 2025 Product Demo Recap

Discover Gepard PIM’s May ’25 updates: real-time imports, PDF product imports, drag-drop media, inline attribute creation and AI extraction.

Read more

Let’s Get In Touch

Need to contact us? Just use this form

Gepard Privacy Policy
Success