Digital marketing term
SKU
SKU is the stock-tracking code a business uses to uniquely identify each product variation, such as color, size, or model, in its inventory.
Detailed explanation
This code is assigned individually to each product variation; even different colors and sizes of the same T-shirt are tracked with separate codes, allowing stock level and sales performance to be measured at the variation level.
A well-built coding system makes it easier to analyze inventory turnover, plan inventory, and understand which variations are in higher demand.
For businesses selling through multiple channels, keeping these codes consistent across all platforms is critical for inventory synchronization and reporting accuracy.
Frequently asked questions
- Why is SKU important?
- It makes it possible to track stock levels and sales performance separately for each product variation.
- Is a SKU the same as a barcode?
- No; a SKU is a code a business defines in its own internal system, while a barcode is typically a standardized, external identification system.
Related terms
Internal links for the topic cluster — read these concepts together.
- Inventory TurnoverInventory Turnover is a financial-operational metric that shows how many times a business's inventory is sold and replenished within a given period.
- Cross-sellCross-sell is a sales technique where a complementary product is recommended to a customer while or after they purchase a main item, aiming to increase total order value and customer satisfaction.
- UpsellUpsell is a sales strategy that aims to increase order value by directing a customer toward a higher-priced, more comprehensive, or higher-quality version of the product they were considering.
- AOV (Average Order Value)AOV is an e-commerce metric found by dividing the total revenue from orders in a given period by the number of orders, showing how much customers spend on average per cart.