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OperationsSKU

SKU (Stock Keeping Unit)

Quick answer

Internal unique code of an item in your stock - finer granularity than GTIN.

Key takeaways

  • Short, readable code (8-12 characters)
  • Consistent format (category + brand + variant + packaging)
  • Never reused (deactivated SKU stays historical)
  • Synced across OMS, WMS, ERP, marketplace

Definition

SKU (Stock Keeping Unit) is your company's internal code for an item distinct from an operational standpoint - color, size, packaging, batch. Finer granularity than GTIN (the global code).

Fashion example

A "Polo Cotton" shirt with 4 colors × 5 sizes = 20 SKUs, but may have 20 GTINs or just 1 GTIN (if variants are not separately marketed).

SKU best practices

  • Short, readable code (8-12 characters)
  • Consistent format (category + brand + variant + packaging)
  • Never reused (deactivated SKU stays historical)
  • Synced across OMS, WMS, ERP, marketplace

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Frequently asked

How many SKUs is "too many"?+

If top 20% SKUs = 80% sales (Pareto), not too many. If 50% SKUs had no movement in 12 months, time to rationalize.

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