{"id":913,"date":"2018-05-04T15:53:00","date_gmt":"2018-05-04T15:53:00","guid":{"rendered":"https:\/\/www.shipbob.com\/uk\/blog\/fulfillment-basics-sku\/"},"modified":"2025-08-06T23:20:09","modified_gmt":"2025-08-06T23:20:09","slug":"fulfillment-basics-sku","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/uk\/blog\/fulfillment-basics-sku\/","title":{"rendered":"Stock Keeping Unit (SKU): What Is It & How Are SKUs Used in Retail"},"content":{"rendered":"\n

Table of Contents<\/p>

** Minutes<\/p><\/div><\/div>\n

What is a Stock Keeping Unit (SKU)?<\/a><\/p>\n\n\n\n

Using a SKU and Barcodes<\/a><\/p>\n\n\n\n

How SKUs are used in ecommerce<\/a><\/p>\n\n\n\n

How to calculate the number of SKUs in your inventory<\/a><\/p>\n\n\n\n

Conclusion<\/a><\/p>\n\n\n\n

Learn more<\/a><\/p>\n<\/div>\n\n\n\n

The world of order fulfilment can seem <\/span>full of confusing jargon<\/span><\/a>, especially if you\u2019re just starting your ecommerce business. Part of creating an ecommerce order fulfilment strategy<\/a> involves understanding all of the different parts of successful fulfilment and inventory management<\/a>. <\/span><\/p>\n\n\n\n

One important element to get familiar with is the SKU, or Stock Keeping Unit. <\/span><\/p>\n\n\n\n

In this article, you will learn what a SKU is, how SKUs are used, and how to calculate the number of SKUs in your inventory. <\/span><\/p>\n\n\n\n

What is a Stock Keeping Unit (SKU)?<\/h2>\n\n\n\n

A stock-keeping unit (SKU) is a scannable alphanumeric code used to identify a specific product as an inventory control measurement. SKU codes are usually printed on product labels and represent different product characteristics such as colour, size, brand, and are used by traditional retail stores, product fulfilment centres, warehouses, online retailers, and in catalogueueues to track inventory and improve their overall inventory management<\/p>\n\n\n\n

Using a SKU and Barcodes<\/h2>\n\n\n\n

A SKU can be any series of numbers that you choose. Unlike a <\/span>Universal Product Code (UPC)<\/span><\/a>, SKUs are actually unique codes; instead, each retailer has its own variant of SKUs.<\/span><\/p>\n\n\n\n

There is no rule about creating SKUs, but make sure that everyone at your company understands your SKU system; SKUs are unique identifiers that can easily be, as opposed to <\/span>barcodes<\/span><\/a> or UPC codes that often need equipment or software to break down.<\/span><\/p>\n\n\n\n

Shopify<\/span><\/a> gives the following example for a SKU number<\/a>: <\/span><\/p>\n\n\n\n

A SKU for a pair of purple Ugg boots in the Bailey Bow style, size 7 might look something like this: UGG-BB-PUR-07.<\/span><\/p>\n\n\n\n

The above example is easy to read, shares important information about the product, and follows a clear naming convention.<\/span><\/p>\n\n\n\n

How SKUs are used in ecommerce<\/h2>\n\n\n\n

SKUs help you keep track of your inventory with regard to both inbound and outbound logistics,<\/a> and are especially helpful when working with a third-party fulfilment provider. <\/span><\/p>\n\n\n\n

When working with a new third-party logistics (3PL<\/a>) provider, you will likely be asked how many different SKUs you have in your inventory. This helps the 3PL know how much warehousing and storage space<\/a> you will need in their fulfilment centre, as well as how complex your orders may be. <\/span><\/p>\n\n\n\n

Many 3PLs store each unique SKU in its own bin or shelf space to optimise picking lists<\/a> to make the picking and packing process as accurate and efficient as possible. <\/span><\/p>\n\n\n\n

A 3PL that offers a comprehensive <\/span>inventory management<\/span><\/a> solution may offer the following services, all of which are based on SKUs:<\/span><\/p>\n\n\n\n