The SKU number exists on all products.
Retailers identify products by a unique stock keeping unit, or SKU, number. The SKU number, which every product displays on its packaging, benefits both retailers and consumers. Understanding the purpose of the SKU can help both retailers and consumers use it to their advantage when selling and buying goods.
Description
The SKU number is a retailer- or store-specific number assigned to a product. You can find it on product packaging or directly on the product underneath the bar code that is scanned when you purchase the product. The same product sold by different retailers will not have the same SKU number. Store A will assign a specific SKU number to a product, like a can of green beans, and Store B will assign a different SKU number to that same product. SKU numbers, then, often reflect a numbering scheme set in place by a specific retailer.
Benefits for Retailers
Retailers use SKU numbers to keep track of inventory, hence the name "stock keeping unit number." When SKU numbers are scanned when an item is purchased, that number is tied to the product line, which can help retailers identify when they are running low on a certain product. SKU numbers vary by retailer---one retailer might use an eight-digit number, while another might use a 12-digit number.
Benefits for Consumers
Understanding SKU numbers can benefit consumers as they shop. If you know the SKU number of a product, you can locate the product more easily, which can be beneficial when there are a variety of brands offering the same or similar products. You can also conduct online research using the SKU number. Enter the SKU number in a search engine to compare prices, which you can even compare from one location of a store to the next.
SKU versus UPC
Consumers often confuse SKU numbers with UPCs, or universal product codes. The difference is simple: As its name implies, UPCs are numbers assigned universally to a specific product, from retailer to retailer. So, the same model of computer sold at an online retailer and sold in a big-box chain store will have the same UPC, but will likely have different SKU numbers; the online retailer would assign an SKU number that is different from the big-box retailer.
