Shopify Ops Glossary
SKU (Stock Keeping Unit)
A unique identifier for each distinct product variant.
Definition
A SKU is a unique alphanumeric code assigned to each distinct product variant (e.g., Blue T-Shirt in Size M). SKUs are used for inventory management, order fulfillment, and performance analysis.
Why It Matters for Shopify Brands
Proper SKU management prevents fulfillment errors (shipping the wrong variant), enables accurate inventory tracking, and supports return and exchange workflows. Poor SKU hygiene is a common source of ops errors.
Benchmarks
SKU complexity directly impacts fulfillment error rate. Brands with 100+ SKUs benefit significantly from barcode scanning and inventory management software.
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