Definitions
Universal Product Code | A unique numeric-only code, usually consisting of 12 digits, that makes items trackable.This is the scannable barcode on the product. |
Stock Keeping Unit | Unique alphanumeric identifier assigned to each product. Businesses often code attributes of the item into the SKU.SKUs are used to keep track of products and manage inventory internally. |
SKU and UPC codes are used to track inventory but serve different functions. SKUs are used internally to manage inventory and can be applied to any billable product. UPCs are used to track inventory and are only applied to physical products.
A product's UPC and SKU can be the same as long as they are not shared with other products.
Helpful Tip
Creating a standard format for your SKUs to follow will save you time in the future when you’re creating more SKUs because you will already know what to include.
Example 1 SKU: BRAND-CL-YELLOW-BLOUSE (brand name - category [clothing] - color - type of product)
Example 2 SKU: AC-WHEELS-BK-V1 (category [accessory] - product - color - version)
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