A SKU (Stock Keeping Unit) is an alphanumeric code, usually unique, that helps identify and track a product. Each SKU identifies the characteristics of a product (size, color, style, etc.) and is used to track how much of that product is in stock. SKUs make inventory management easier for retailers and warehouses, allowing them to effectively track sales and stock levels. Different SKUs are used for different products or product variations, so that the inventory status and sales performance of each product can be tracked separately. This system is vital for order processing, inventory management and sales analysis, especially in the e-commerce and retail sectors.