{"id":1562,"date":"2023-09-08T00:00:00","date_gmt":"2023-09-08T00:00:00","guid":{"rendered":"https:\/\/www.simplybusiness.co.uk\/knowledge\/retail\/what-does-sku-stand-for\/"},"modified":"2025-06-16T13:44:32","modified_gmt":"2025-06-16T13:44:32","slug":"what-does-sku-stand-for","status":"publish","type":"knowledge","link":"https:\/\/www.simplybusiness.co.uk\/knowledge\/retail\/what-does-sku-stand-for\/","title":{"rendered":"What does SKU stand for? How to supercharge your stock management"},"content":{"rendered":"<p class=\"wp-block-paragraph\">If you run a retail business then you\u2019ll be well aware of the need to keep track of stock \u2013 but have you tried using digital codes to make product tracking and forecasting even easier? That\u2019s where a SKU system comes in. <\/p>\n\n<p class=\"wp-block-paragraph\">But what is a SKU \u2013 and how do you use it to make managing your inventory a breeze? Whether you have an online shop or a high street business, setting up a system of SKU codes for all your products could save you time and money as a small business. Keep reading to learn more.  <\/p>\n\n<h2 class=\"wp-block-heading\">What is a SKU number?<\/h2>\n\n<p class=\"wp-block-paragraph\">SKU stands for \u2018stock keeping unit\u2019 and is used by businesses to keep track of inventory. It\u2019s a collection of letters and numbers (alphanumeric) that are coded to identify an individual product. <\/p>\n\n<p class=\"wp-block-paragraph\">SKUs include a set number of characters for each product identifier, which might include:<\/p>\n\n<ul class=\"wp-block-list\"><li class=\"wp-block-list-item\">product name<\/li>\n\n<li class=\"wp-block-list-item\">product category<\/li>\n\n<li class=\"wp-block-list-item\">origin <\/li>\n\n<li class=\"wp-block-list-item\">colour <\/li>\n\n<li class=\"wp-block-list-item\">size<\/li>\n\n<\/ul>\n\n<p class=\"wp-block-paragraph\">A SKU is included on barcodes or QR codes on products, but shouldn\u2019t be confused with UPC codes and the barcodes themselves. <\/p>\n\n<p class=\"wp-block-paragraph\">By creating a unique identifier for each product, you\u2019ll instantly be able to see what stock you have left, when you need to reorder, and whether you should put something on <a href=\"\/knowledge\/retail\/a-guide-to-back-orders\/\" data-type=\"knowledge\" data-id=\"1317\" >backorder<\/a>. <\/p>\n\n<p class=\"wp-block-paragraph\">Your point of sale system will automatically remove an item from your inventory once the SKU is scanned after you make a sale. <\/p>\n\n<p class=\"wp-block-paragraph\">You don\u2019t have to use SKUs but an organised, digital system like this can make your life easier as your business grows. <\/p>\n\n<p class=\"wp-block-paragraph\">Not sure what product to sell next? Read our guide to <a href=\"\/knowledge\/retail\/how-to-find-a-product-to-sell-online\/\" data-type=\"knowledge\" data-id=\"936\" >finding a new product to sell online<\/a>. <\/p>\n\n<h2 class=\"wp-block-heading\">Why create a SKU for your products? <\/h2>\n\n<p class=\"wp-block-paragraph\">These are just some of the benefits of setting up an inventory system and creating SKU numbers for your products: <\/p>\n\n<ul class=\"wp-block-list\"><li class=\"wp-block-list-item\">quick reference for stock levels (our <a href=\"\/knowledge\/retail\/how-to-do-a-stock-take\/\" data-type=\"knowledge\" data-id=\"1428\" >stocktaking tips<\/a> can help you here too)<\/li>\n\n<li class=\"wp-block-list-item\">manage orders and <a href=\"\/knowledge\/retail\/best-uk-courier-a-small-business-guide\/\" data-type=\"knowledge\" data-id=\"1348\" >deliveries<\/a> more efficiently<\/li>\n\n<li class=\"wp-block-list-item\">use tech to find a product\u2019s location<\/li>\n\n<li class=\"wp-block-list-item\">easily track exchanges and returns <\/li>\n\n<li class=\"wp-block-list-item\">support sales reporting and forecasting <\/li>\n\n<\/ul>\n\n<p class=\"wp-block-paragraph\">Using SKUs also form a crucial part of <a href=\"\/knowledge\/retail\/definition-of-supply-chain-management\/\" data-type=\"knowledge\" data-id=\"1090\" >supply chain management<\/a>, as this digital data will help you by triggering low stock warnings or tracking order status. <\/p>\n\n<p class=\"wp-block-paragraph\">For example, a customer comes into your homeware shop and wants to know if you have a particular vase in stock in another colour. You can simply scan the SKU of the vase you have in store, and your digital system will show what you have available in the storeroom (or even at another store or warehouse). <\/p>\n\n<h2 class=\"wp-block-heading\">Do I need a SKU generator?<\/h2>\n\n<p class=\"wp-block-paragraph\">A SKU number is specific to the business, so you can create your own system for generating codes. A quick Google search shows there are plenty of SKU generators online, or you can create your own using Excel if you have the expertise. <\/p>\n\n<p class=\"wp-block-paragraph\">Every SKU follows a set format and details specific aspects of your product, such as category, size, and colour. <\/p>\n\n<p class=\"wp-block-paragraph\">Here\u2019s a SKU example format for a dress sold in a clothing shop:<\/p>\n\n<p class=\"wp-block-paragraph\">4857\u2013289-SUM-GRN-12<\/p>\n\n<p class=\"wp-block-paragraph\">The SKU is referencing the item through set codes and letters. The brand (4857), product (289), style (summer dress), colour (green), and size (12). <\/p>\n\n\n<div id=\"nba-body-001\">\n<\/div>\n<h2 class=\"wp-block-heading\">What is SKU on Facebook Marketplace and Facebook Shops?<\/h2>\n\n<p class=\"wp-block-paragraph\">Facebook has two platforms you can use to sell products online: Marketplace and Shops. <\/p>\n\n<p class=\"wp-block-paragraph\">For each product listing, you\u2019ll have the option to add a SKU code to keep track of what you\u2019re selling. It\u2019s not essential but can be useful if you\u2019ve got a lot of products in a warehouse somewhere.<\/p>\n\n<p class=\"wp-block-paragraph\">When you create the item listing on Facebook Marketplace, there\u2019s the option to add \u2018More details\u2019 about your product. Click the dropdown menu and you\u2019ll see a box where you can input \u2018SKU\u2019. This is optional, so you don\u2019t need to complete it if you don\u2019t have a SKU for your item.   <\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Read more:<\/strong><\/p>\n\n<ul class=\"wp-block-list\"><li class=\"wp-block-list-item\"><a href=\"\/knowledge\/retail\/how-to-sell-on-facebook-marketplace\/\" data-type=\"knowledge\" data-id=\"1023\" >How to sell on Facebook Marketplace <\/a><\/li>\n\n<li class=\"wp-block-list-item\"><a href=\"\/knowledge\/retail\/how-to-set-up-facebook-shops\/\" data-type=\"knowledge\" data-id=\"1067\" >How to sell on Facebook Shops <\/a><\/li>\n\n<\/ul>\n\n<h2 class=\"wp-block-heading\">Creating a SKU code for products you sell on Amazon <\/h2>\n\n<p class=\"wp-block-paragraph\">Similarly, if you\u2019re <a href=\"\/knowledge\/retail\/selling-on-amazon-uk-guide-for-small-business\/\" data-type=\"knowledge\" data-id=\"1517\" >selling products on Amazon<\/a> then you\u2019ll probably want to use a SKU for each item. <\/p>\n\n<p class=\"wp-block-paragraph\">As with any other online shop, SKUs on Amazon help you manage stock, deliver to customers more quickly, and keep track of your sales. This can be particularly useful if you\u2019re shipping lots of products. <\/p>\n\n<p class=\"wp-block-paragraph\">It\u2019s worth noting though, a SKU is different to the Amazon Standard Identifier Number (ASIN). Your ASIN is automatically generated by Amazon whenever you list an item for sale. This appears in the product details section of each product listing. <\/p>\n\n<h2 class=\"wp-block-heading\">Protect your stock  <\/h2>\n\n<p class=\"wp-block-paragraph\">Losing stock to theft, fire, or a flood can be disastrous to your business. Whether you store your products in a warehouse or in your home, make sure you have <a href=\"\/business-insurance\/stock-insurance\/\">stock insurance<\/a> as it can cover your costs if your products are destroyed, lost, or damaged. It also can cover materials you need to run your business if something happens to them too. <\/p>\n\n<h3 class=\"wp-block-heading\">Read more guides for small businesses<\/h3>\n\n<ul class=\"wp-block-list\"><li class=\"wp-block-list-item\"><a href=\"\/knowledge\/retail\/online-payment-methods-for-business\/\" data-type=\"knowledge\" data-id=\"1490\" >How to take payments online<\/a><\/li>\n\n<li class=\"wp-block-list-item\"><a href=\"\/knowledge\/retail\/what-is-the-best-app-to-sell-my-clothes\/\" data-type=\"knowledge\" data-id=\"992\" >Best apps for selling clothes online<\/a><\/li>\n\n<li class=\"wp-block-list-item\"><a href=\"\/knowledge\/retail\/how-to-set-up-an-online-shop\/\" data-type=\"knowledge\" data-id=\"985\" >How to set up an online shop \u2013 a step-by-step guide<\/a><\/li>\n\n<li class=\"wp-block-list-item\"><a href=\"\/knowledge\/strategy\/how-to-write-a-business-plan\/\" data-type=\"knowledge\" data-id=\"1199\" >How to write a business plan<\/a><\/li>\n\n<li class=\"wp-block-list-item\"><a href=\"\/business-insurance\/faq\/what-type-of-business-insurance-do-i-need\/\">What type of business insurance do I need?<\/a><\/li>\n\n<\/ul>\n\n<p class=\"wp-block-paragraph\"><strong>Are you setting up a SKU code system for your retail shop or online business? Let us know how you get on in the comments below. <\/strong><\/p>\n\n\n\t\t\t\t\t<div id=\"nba-upsell-001\" class=\"wp-block-group has-azure-200-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-94e519ba wp-block-group-is-layout-constrained\" style=\"padding-top:var(--wp--preset--spacing--80);padding-right:var(--wp--preset--spacing--40);padding-bottom:var(--wp--preset--spacing--80);padding-left:var(--wp--preset--spacing--40)\"><h3 class=\"wp-block-heading has-text-align-center\">Get personalised insurance for your business<\/h3>\n\n<p class=\"has-text-align-center wp-block-paragraph\">Whether your company needs <a href=\"\/business-insurance\/public-liability-insurance\/\">public liability insurance<\/a>, <a href=\"\/business-insurance\/business-interruption-insurance\/\">business interruption insurance<\/a>, or something else entirely, we\u2019ll work with you to find the cover you need. Get a quote online, or talk to our expert team on 0333 016 4307.<\/p>\n\n\n\t\t\t\t\t<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-a89b3969 wp-block-buttons-is-layout-flex\">\n\t\t\t\t\t<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/quote.simplybusiness.co.uk\/business\">Start your quote<\/a><\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\n<p class=\"wp-block-paragraph\"><em>Photograph: Dragana Gordic\/stock.adobe.com<\/em><\/p>\n<div id=\"nba-body-end\">\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>SKU stands for stock keeping unit and is a code businesses can use to identify individual items and keep track of inventory. Here\u2019s how to create a SKU.<\/p>\n","protected":false},"author":3,"featured_media":3064,"comment_status":"open","ping_status":"closed","template":"","meta":{"sb_hreflang":"","sb_hreflang_url":"","disable_breadcrumbs":false,"sb_breadcrumbs":[],"sb_reviewed_by":"","sb_review_date":"","sb_enable_content_gating":true,"footnotes":""},"categories":[347,110],"hidden-category":[],"coauthors":[25],"class_list":["post-1562","knowledge","type-knowledge","status-publish","has-post-thumbnail","hentry","category-retail","category-business-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What does SKU stand for? A simple way to manage stock<\/title>\n<meta name=\"description\" content=\"SKU stands for stock keeping unit and is a code businesses can use to identify individual items and keep track of inventory. 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