A stock keeping unit, also known as a SKU (pronounced "skew"), is an internal identification code for a product. Unique SKUs allow a seller to know what's in and what's not in stock—but, most importantly, what sells.
For example, a hardware store manages 8,000 SKUs in its inventory system. Each bolt size, colour, and quantity gets its own unique SKU code so staff can instantly check stock levels, trigger reorders at defined thresholds, and track which SKUs sell fastest during seasonal demand spikes.
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