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SKU or Stock Keeping Unit refers to a unique code given to identify a particular type of product in the inventory.
SKU is the abbreviation of stock keeping unit. SKU is used by the retailers to identify stocks, track inventory etc. SKU is nothing but a unique piece of code, which does not necessarily have a standard format. A SKU can be a combination of digit and numbers, in any order, as per the likes of the business. SKUs are important since they help identify certain characteristics about a product.
For example, a product’s manufacturer, size, shape, colour etc. can be known by identifying its SKU. SKUs serve their purpose of accurately tracking the inventory quite well. While different companies have their own system of forming a SKU, they are typically deployed in warehouses, retail stores, catalogs, e-tailers, product fulfilment centres etc.