I have seen this question from time to time my friends, so here is the answer.
A SKU refers to a Stock Keeping Unit and is unique to the company that issues it. The SKU is then assigned to each individual product.
So for example, let’s say that I make collage picture frames. I have one black picture frame, that holds 5 – 4×6 photos so my SKU for that product would be Blk546 (or any other number I make up). I have that same picture frame, but in brown. So my SKU for that product would be different, I might use Brn546. This would carry on until individual product has its own unique SKU.
SKU’s assist warehouses in keeping track of their inventory. So knowing the number of SKU’s that each wholesaler has, tells you how much inventory they have.
If you have any additional questions about SKU’s, please ask them below!