What does SKU stand for? Stock keeping unit. It is a code a seller gives to one exact version of a product so it can count, order and sell it without mix ups. A blue medium T shirt and a blue large T shirt look almost the same, but each gets its own SKU.
You will spot SKUs on shelf tags, receipts, packing slips and product pages, often as a short string of letters and numbers like "TS BL M" or "40218." The store makes up the code itself, which is the main way it differs from the barcode number printed by the manufacturer.
Quick facts
Stands for
Stock keeping unitType
Initialism, often said as a wordHow to say it
"skew" or "S K U"Plural
SKUsSeen on
Shelf tags, receipts, packing slips, product pagesSet by
The seller, not the manufacturerNot to be confused with
UPC, the universal barcode number
What does SKU stand for, and what does each word mean?
| Letter | Word | Meaning in a store |
|---|---|---|
| S | Stock | The goods a business keeps on hand to sell |
| K | Keeping | Tracking and managing those goods |
| U | Unit | One distinct item type that gets counted |
So a SKU is the smallest unit a seller wants to track separately. If the store would ever need to know how many of a certain size, color or flavor it has left, that version gets its own code.
How SKUs work in a real store
Picture a sneaker sold in three colors and eight sizes. That is one product but 24 SKUs. When a customer buys a red size 9, the point of sale system subtracts one from that SKU only. The buyer can then see that red size 9 is running low while white size 11 is piling up.
On a packing slip: "SKU: MUG-12-GRN, Qty 2." The warehouse picked two green 12 ounce mugs. The code is built to be readable: item type, size, color.
Good SKU codes are short, start with a letter rather than a zero, avoid easily confused characters like O and 0, and follow a pattern every worker can learn.
SKU vs UPC
These two codes are often printed close together, so people mix them up.
| SKU | UPC | |
|---|---|---|
| Stands for | Stock keeping unit | Universal Product Code |
| Who makes it | Each seller, for its own use | Issued through a standards body for the product maker |
| Same at every store? | No, each store can use its own | Yes, the same product carries the same number |
| Format | Any mix of letters and numbers | Usually 12 digits under a barcode |
A single cereal box carries one UPC everywhere, but three different stores may each give it a different SKU. Store systems often link the two, so scanning the UPC brings up the store's SKU record.
SKU stands for something you can use as a shopper
The code is mostly for staff, but it can help you too.
- Finding an item: give a store worker the SKU from the website, and they can check stock quickly.
- Returns: the SKU on the receipt confirms exactly which version you bought.
- Matching parts: for paint, flooring or tiles, writing down the SKU helps you buy the same batch style later.
On a product page: "SKU 5521834. Check availability at a store near you." Typing that number into the store's search usually brings up the exact item.
How to say and write SKU
People say it both ways. In many offices and warehouses it is "skew," said as one word, so in those workplaces it behaves like a true acronym. Others say "S K U," letter by letter. Both are understood.
- Write it in capitals: SKU, plural SKUs (no apostrophe).
- With "skew," use "a SKU." With the letters, use "an SKU." Pick one style for your document.
- Spell it out on first use for readers outside retail.
For more on letters said as a word versus one by one, see what is an acronym.
Sentences that use the SKU acronym
- "We cut the number of SKUs in the snack aisle to make room for new items."
- "Please include the SKU in your return form."
- "That SKU is out of stock online but available in the store."
- "Each new color means a new SKU in the system."
For more letter codes used in buying and selling, browse the business acronyms section, including MSRP and RMA.
Questions people ask
What is the SKU full form in retail?
The full form is stock keeping unit. It is the code a store uses to track one specific version of a product, such as one size and color.
How do you pronounce SKU?
Many people say "skew," like one word. Others say each letter, "S K U." Both are common and correct.
Is a SKU the same as a barcode?
No. The barcode usually holds the UPC, which is the same at every store. The SKU is the seller's own internal code.
What is a SKU number on a receipt?
It identifies exactly which item you bought. Stores use it for returns, exchanges and stock counts.
Why do some stores have thousands of SKUs?
Every size, color, flavor and package count is its own SKU. A store with a few hundred products can easily track thousands of versions.