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What is an SKU?

SKU means stock keeping unit. When you have to sell any product to customer, it is necessary, you have to produce it enough quantity. In online business, it is necessary to show it.

There are two main benefits of stock keeping unit. One is you can find the stock quantity or model which will be available all the time for sale. Second, you can identify the product size or other tracking inventory code through its SKU code. It is also called skew or product id. If any ecommerce site is not using it for identifying the products, it can be used like UPC or GTIN.

If any ecommerce website has lots seller of single product. Then, same brand's SKU can be helpful for identifying it and same SKU product can be easily solde by millions of sellers to billions of peoples. For example, you are selling glasses, one model is 4578-whiteN. So, 4578 is its model no. and name of model is whiteN.

For Example : 

Flipkart asks SKU if you are a valid seller in it. Not just Flipkart, other ecommerce companies are also  using it for classify the products of its partner sellers. For controlling  of inventory, it has major role. Whole products of any company can be in unique code and now we can find its quantity in stock. There is less chance of similarity of same type product if we will maintain it in SKU. Whether it is 1000 SKUs or 1 Million. Big ecommerce website can handle each SKU.


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Accounting Education: What is an SKU?
What is an SKU?
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Accounting Education
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