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StockSense guide

What Is a SKU, and How Is It Different From a Barcode?

SKU and barcode sit next to each other on a Shopify product, and they are easy to confuse. This guide explains what a SKU is, how it differs from a barcode, why it matters for your store and the mistakes that cause stock errors.

What a SKU is

SKU stands for stock keeping unit. It is a code you create yourself to identify one sellable item, down to the variant. Shopify's help page describes SKUs as codes you can use internally to track your inventory and report on your sales, and it states that SKUs are different from barcodes and are used for different purposes.

SKUBarcode (GTIN)
Assigned by youAssigned by the manufacturer
Used inside your storeShared by every seller of that product
Any format you chooseA fixed number of digits

A concrete example

You sell a cotton t-shirt in two colors and three sizes. That is six variants, so six SKUs. A readable pattern makes each one obvious at a glance.

The barcode on the same shirt, if the manufacturer printed one, is a string of digits that means nothing to a person reading it. Another retailer selling that shirt shares the barcode, but their SKU for it will be their own.

Why it matters for a store

Shopify says SKUs are not required, but you need a stable way to refer to each variant in order to count stock, read sales reports and place supplier orders.

Common mistakes

Shopify's guidance is that SKUs in your admin should be unique, with no two variants sharing one. It also suggests keeping them short, using consistent abbreviations, and avoiding spaces and special characters.

For barcodes and Google's identifier rules, see GTIN, MPN and brand for Google. Once your SKUs are clean, see how to calculate a reorder point.

Doing this at scale

StockSense forecasts per-SKU demand from your order history using velocity, trend, seasonality and lead-time-aware safety stock. It recommends a reorder point, quantity and date, ranks SKUs by revenue at risk, and drafts purchase orders grouped by supplier. See StockSense.

Doing this for a whole catalog or every order?

See how StockSense handles it for you.

Explore StockSense →

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