SKU Full Form

What is the full form of SKU?

The full form of SKU is the Stock Keeping Unit. It is a code for product identification that identifies a product distinctly. For inventory purposes, it helps monitor a product. The code also referred to as a brand identifier or product number, but it is usually referred to as the number of the SKU.

Working of SKU

SKU constitutes Letters and numbers. The numbers & letters, like the name, model number, colour, etc., give information about the product.

Each company require its method of making SKUs for its goods, and there is no false method to develop an SKU. With that said, while building an SKU for an item, there are a few industry standards like,

  • Make every single SKU specific. Never reuse an SKU as well as make sure that a unique SKU comes for each good or service.
  • Keep brief SKUs. In some inventory control, long SKUs may be hard to read and therefore, do not work.
  • Should not use a particular space or characters. It may confuse people to create SKU with characters or spaces.
  • Should not use letters which may be confused for numbers. Refrain from using letters that can be mistaken for 0 and 1, like O & I.

Significance of SKU

Stock keeping units are incredibly critical and are widely used by department stores, factories, and centres of product fulfilment. There are several key uses of stock-keeping units, including the following,

  • Identifying a particular product
  • Inventory monitoring to consider how much of a particular product is present.
  • Assisting to resolve brand stock levels
  • Identifying inventory shrinkage
  • Determining the goods, by research, are the most profitable.
  • Helping to define a product reorder point
  • Helping consumers save time by allowing them to find goods quickly.


Consider a specific product a medium-sized pair of black Gucci jeans.

For this product, we can create an SKU as follows.



  • To differentiate specific details regarding the product, a dash (-) is used to
  • BLK relates to the product colour that is Black
  • MED relates to the medium product size
  • The model number given by the producer corresponds to G123
  • GUC relates to the brand of the product.


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