SKU (Stock Keeping Unit) is a unique identification code assigned to a product for inventory and stock management purposes. Businesses use SKUs to track products, monitor inventory levels, manage warehouse operations, and organize different product variations efficiently. Each SKU is created based on factors such as product type, size, color, category, or brand, making every item easier to identify within the inventory system.

In eCommerce and retail businesses, SKUs help sellers manage stock accurately and reduce confusion during order processing. For example, different sizes or colors of the same product can have separate SKUs to ensure proper inventory tracking. This improves inventory visibility, reduces stock errors, and simplifies warehouse management.

SKUs are also important for order fulfillment, shipping, and inventory forecasting. They help businesses quickly identify products during picking, packing, and dispatch operations. By using SKU systems, online sellers can improve operational efficiency, avoid overselling, manage stock replenishment, and deliver a smoother shopping experience to customers. Proper SKU management becomes essential for businesses handling large product catalogs and high order volumes.

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