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e purpose of a "product SKU" in eCommerce?

Question

e purpose of a "product SKU" in eCommerce?

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Solution

A "product SKU" or Stock Keeping Unit in eCommerce is a unique identifier that allows businesses to keep track of their inventory. Here are the steps explaining its purpose:

  1. Identification: SKU is a unique alphanumeric code assigned to each product for identification. It helps in distinguishing a product based on various attributes like model, size, color, manufacturer etc.

  2. Inventory Management: SKU helps in tracking the quantity of each product in the inventory. It allows businesses to know when a product is out of stock or when it needs to be reordered.

  3. Facilitates Selling: SKU codes are used in the process of selling products online. They are used to list products on eCommerce platforms and are also used in the checkout process.

  4. Reporting: SKU codes are used in generating sales reports. They help in understanding which products are selling well and which are not.

  5. Streamlines Operations: SKU codes help in streamlining various operations like shipping, warehousing, and logistics. They help in locating the exact position of a product in a warehouse.

In summary, a product SKU is a critical tool in eCommerce that helps in product identification, inventory management, facilitating selling, reporting, and streamlining operations.

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