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Glossary Term
S

Stock Keeping Unit (SKU)

A unique code for each product variant — the foundation of inventory tracking.

Key Takeaways

  • A SKU is a unique code for each product variant.
  • It identifies variants for inventory, ordering, and tracking.
  • SKUs are set on each variant in Shopify.
  • They're used across inventory, orders, and reports.
  • They make inventory precise, not guesswork.

Overview

A Stock Keeping Unit (SKU) is a unique code assigned to each product variant — identifying it for inventory, ordering, and tracking. On Shopify, SKUs are set on each variant and used across inventory, orders, and reports to track exactly what's selling.

SKUs keep inventory organized. Each variant — size, color, style — gets its own SKU, so you know exactly what's in stock, what's selling, and what to reorder. Without SKUs, inventory is guesswork; with them, it's precise.

SKUs pair with product variants (what they identify), inventory management (what they support), and barcode scanner (how they're scanned). They're an inventory and operations fundamental.

1

Why SKUs Matter for Shopify Merchants

  1. 1

    Inventory Accuracy

    SKUs track each variant precisely — you know what's in stock.

  2. 2

    Faster Fulfillment

    SKUs speed up picking and packing — the right item, every time.

  3. 3

    Better Reporting

    SKUs let you see which variants sell best — data-driven decisions.

  4. 4

    Easier Reordering

    SKUs make reordering precise — reorder exactly what's running low.

  5. 5

    Barcode Scanning

    SKUs pair with barcodes for fast, accurate scanning in fulfillment.

2

Using SKUs Effectively

  1. 1

    Use a consistent format

    Create a SKU format (e.g., BRAND-COLOR-SIZE) — consistent SKUs are easier to manage.

  2. 2

    Set SKUs on all variants

    Every variant should have a SKU — don't leave any blank.

  3. 3

    Use barcodes too

    Pair SKUs with barcodes (UPC/GTIN) for scanning and marketplace selling.

  4. 4

    Keep them unique

    Never reuse a SKU — unique codes prevent confusion and errors.

  5. 5

    Review in reports

    Use SKU-level reports to spot best sellers and slow movers.

FAQ

Frequently Asked Questions

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