SKU stands for Stock Keeping Unit. It is a number or code assigned to a product for tracking and inventory. Each SKU is unique to a business and helps workers quickly find details about a product. An SKU is not the same as a UPC. A UPC is a universal barcode used by many stores, while an SKU is set by each business for its own use.
Think of it like this: if you sell blue T-shirts in three sizes, each size would have its own SKU.
- Small blue T-shirt: SKU #BLU-TS-S
- Medium blue T-shirt: SKU #BLU-TS-M
- Large blue T-shirt: SKU #BLU-TS-L
Each SKU is unique to that exact item. This is why two products that look similar might still have different SKUs.
SKU Number vs UPC: Key Differences
A lot of people mix up SKUs and UPCs. They are not the same. A UPC (Universal Product Code) is a 12-digit barcode standard used across stores and even countries. It stays the same no matter who sells it.
An SKU is set by you or your business. It’s for internal use. You decide the format.
Example:
- SKU: SHOE-BLK-10 (Black shoe, size 10, your code)
- UPC: 012345678912 (standard barcode scanned at checkout)
In short, the SKU helps you keep track of your own inventory. The UPC is what retailers and manufacturers use to track the item globally.
How to Find & Lookup an SKU Number
Looking up an SKU number is simple if your system is set up right. Most point-of-sale software lets you search by SKU. You can type the SKU into your POS or inventory tool and see details like stock count, location, or last sale date.
For customers, many online stores let you search by SKU. If you have a product SKU from an invoice or a packing slip, you can often enter it on the retailer’s site to find the exact item.
There are also online SKU lookup tools. For example, some marketplaces like eBay allow you to enter an SKU to see if other sellers have the same item listed. This helps you compare prices or check availability.
SKU Code Examples & How They’re Structured
SKU codes are built to be easy for staff to read and understand. They often include letters and numbers that give quick hints about the product.
For example, a shoe store might use:
SKU: SH-BLK-42
This means: SH (shoe), BLK (black), 42 (size).
A grocery shop could have:
SKU: APP-FJI-5LB
Meaning: APP (apple), FJI (Fuji), 5LB (5 pounds).
There’s no fixed rule. Each business creates a format that makes sense to them. The key is to stay consistent, so everyone in the company knows what the code means at a glance. A study by Lightspeed POS found that stores using clear SKU formats cut picking and packing errors by 23%.
Product SKU Rationalization: Why It’s Important
SKU rationalization is simply reviewing your SKUs to see which products are worth keeping. Too many SKUs can tie up cash and make managing stock harder.
Let’s say a hardware store has 15 types of hammers, but 5 barely sell. By dropping those 5, they can put money into better-selling lines. It also means fewer products to track, count, and reorder.
A report from Retail Systems Research showed businesses that review their SKUs twice a year grow profits 12% faster than those that don’t. That’s because they keep their stock lean and focused on what sells.
FAQ: Common Questions About SKUs
Can two products have the same SKU?
No. Each SKU must be unique to a specific product, size, or style. If two products share an SKU, tracking errors will happen.
Is an SKU the same as a barcode?
Not exactly. An SKU is your store’s code. A barcode (like a UPC) is scanned at checkout and is standard across retailers. Many stores print SKUs under barcodes for quick staff checks.
Do small businesses need SKUs?
Yes, even tiny shops benefit. With only 20 products, SKUs help you reorder the right item and spot sales trends.
