Do you know the meaning of SKU? Worry not — we’re here to help! Read on as we explore the acronym SKU to uncover its definition and more.

In the great wide world of retail-related acronyms, SKU is likely one you’ve come across many times, but do you know what it means? Don’t worry, we’ll tell you!

In this post, we’re exploring the acronym SKU to uncover what it stands for, its meaning, and how it’s used. Are you ready? Let’s dive in.

What Does SKU Stand For?

If you ask the folks over at Cambridge English Dictionary, SKU is an abbreviation for stock-keeping unit. It can also be defined more in-depth as a set or single number given to a product to show which particular product it is.

In layman’s terms, a SKU (pronounced “skyo͝o”) stands for stock-keeping unit, and a retailer will use SKUs to identify their business’s inventory.

The acronym SKU first appeared in 1974, also defined as “stock-keeping unit.” Typically speaking, SKUs are printed along with a barcode.

Usage Examples of SKU

By now, in the world of online order and retail-related acronyms, surely you have heard SKU well over a million times. As the name suggests, you may have known it’s a number — but how do we use this number correctly?

Using SKU in a sentence is a great way to memorize its definitions, and it also shows the different contexts in which we can use SKU in the English language.

Below you will find many examples of the usage of SKU:

We have identified detailed information on what has been counted at both the attribute and SKU levels.

Were you aware that each item can have several individual suppliers complete with their own unique SKU numbers and negotiated discounts?

If you already have a t-shirt in mind, you can input the SKU to find it in a snap.

You can either go through snail mail and fill out the mailing form on their catalog, or you can go to their online site and put in the SKU to order right away.

I can not believe we started with only two designs; now we have well over 40 SKUs for a single design and multiple warehouses.

For your convenience, we have added a quick order feature to our online retail store; just plug in the SKU number, insert the quantity and order the item in no time flat.

UPC Codes and SKUs

These two acronyms or terms are often used interchangeably. As similar as they may be, they both have unique purposes for online and in-store retailers.

Universal product code or UPC refers to the 12-digit numeric code attached to a product whenever it is sold. A UPC is for external use.

Pro Tip: You may sometimes hear people mistakenly say “UPC code,” which would awkwardly translate to universal product code. So, spread this newfound knowledge to help others avoid this redundant faux pas.

In short, a product will always have the same UPC, regardless of where the item is sold. However, each store may assign it a different SKU. SKUs are typically unique from retailer to retailer.

At the end of the day, many retailers use UPCs as SKUs, but those that make their own products tend to find it beneficial to create their own SKU system.

If you do create your own SKU management system, you will need to calculate two metrics: sales ratio and SKU ratio. Afterward, you will need to compare the two.

Alternate Retail Related Acronyms

Acronyms and abbreviations are more commonplace than the words they represent as we move into our digital age.

Now, most of us may have had our humble beginnings on AOL Instant Messenger —and we’re sure most do not have time to keep up with the ever-expanding list of retail abbreviations!

Fret not, with our list of the most common and popularly used retail-related acronyms; you, too, will be using them all like a licensed professional in no time:

3PL – third-party logistics
AOV – average order value
DC – distribution center
API – application programming interface
AR – augmented reality
CAC – customer acquisition cost
CLTV – customer lifetime value
LBO – leveraged buyout
LIFO – last in, first out
CMS – content management system
EDLP – everyday low pricing
CRM – customer relationship management software
CRO – conversion rate optimization
CSV – comma-separated values
CTA – call to action
FIFO – first in, first out
ATS – average transaction size
CoF – card on file
CTR – click-through rate
CX – customer experience
GST – goods and services tax
DDP – delivery duty paid
DDU – delivery duty unpaid
ATV – average transaction value
EDI – electronic data interchange
ERP – enterprise resource planning software
KPI – key performance indicator
NPS – net promoter score
VAT – value-added tax

Recap

SKUs are codes used to identify inventory, and they can track inventory management, sales trends, and other analysis. Each item type will have its own SKU, specialized down to the size, style, and even color of the product. These are distinct from UPCs because SKUs are not standardized across sotres.

Just remember, for all you business owners out there, SKUs are not a one-size-fits-all sort of architecture; the more you tailor your SKUs to you and your customers’ needs, the more you can help your business succeed.

Sources:

Kevin Miller is a growth marketer with an extensive background in Search Engine Optimization, paid acquisition and email marketing. He is also an online editor and writer based out of Los Angeles, CA. He studied at Georgetown University, worked at Google and became infatuated with English Grammar and for years has been diving into the language, demystifying the do's and don'ts for all who share the same passion! He can be found online here.