SKU stands for Stock Keeping Unit.
Specifically:
I. In the retail industry
1. Representing specific products: For a specific product, each different combination of attributes (such as color, size, style, etc.) is usually regarded as an independent SKU. For example, for the same style of T-shirt, there are three colors of white, black, and blue, and three sizes of S, M, and L. Then there may be nine different SKUs.
2. Inventory management: Retailers can accurately grasp the inventory quantity, sales situation, and replenishment needs of each product through the management of each SKU. For example, through the SKU number, the location and inventory quantity of a specific product in the warehouse can be quickly identified for efficient inventory counting and replenishment operations.
3. Sales analysis: SKU is helpful for analyzing the sales performance of different products. For example, by counting indicators such as the sales volume, sales amount, and gross profit margin of each SKU, we can understand which products are best-selling and which are slow-moving, so as to adjust procurement and sales strategies.
II. In the e-commerce field
1. Product identification: On e-commerce platforms, each product has a unique SKU code to distinguish different product attributes and specifications. When consumers shop, they can choose the specific product style and specification they need through SKU.
2. Order processing: During the order processing process, the SKU code can ensure accurate picking and shipping. Staff can quickly find the corresponding product according to the SKU code in the order, improve order processing efficiency, and reduce the probability of wrong shipments.
3. Marketing and promotion: E-commerce enterprises can carry out promotional activities for specific SKUs. For example, conduct discount promotions on some slow-moving SKUs or conduct combination sales of best-selling SKUs to increase sales and customer satisfaction.