How can SKUs affect inventory management?

Asked 2 years ago

Hello, it seems like I'm struggling with managing stock. I'm running out of space and spending a lot more money trying to source warehousing and shipping stock. I was told that I must relook at my inventory management at SKUs. But why SKUs?

Neil Roach

Tuesday, April 19, 2022

A Stock Keeping Unit or SKU is a number that is assigned to a product for the purpose of inventory management and ease of tracking. I will give you the importance of SKUs regarding inventory management and you might be able to understand why you need to look at it.

The numerous applications for stock keeping units include:

-locating a particular product

-Inventory management is the process of keeping track of how many of a particular product are available.

-Assisting in the reconciliation of product stock levels

-Detecting inventory shrinkage

-Trying to figure out which items are the most profitable (through analysis)

-Assisting in the identification of product reorder points

Write an answer...


Please follow our  Community Guidelines

Can't find what you're looking for?
Don't Know what Shopify is?

Start your own online eCommerce business using Shopify platform. Shopify gives you all the tools needed to make the journey easier, faster and more profitable.

Frequent Releases

We work tirelessly to deliver more value to your business. Our roadmap is largely based on the questions you ask. We listen and we deliver as often as we can.

24/7/365 apps support

You can reach out to us via a dedicated support icon in the apps. We're always there. Or simply send us an email with your questions at

Pin It on Pinterest