what is sku in retail

A Stock Keeping Unit (SKU) is a unique alphanumeric code assigned by retailers to products to track and manage inventory. SKUs are typically eight characters long and are used to identify and differentiate products based on various attributes such as price, manufacturer, color, style, type, and size. They are specific to a business and are used for internal inventory management. SKUs are different from Universal Product Codes (UPCs), which are 12-digit numeric codes attached to products for external use. While UPCs are the same for a product regardless of the retailer, SKUs are unique to each retailer. SKUs are essential for tracking inventory, forecasting sales, and providing personalized product recommendations to customers. They also enable efficient inventory management and sales analysis, helping retailers optimize their inventory levels and increase revenue