A SKU, or Stock Keeping Unit, is a unique identifier used by retailers and manufacturers to track products. Each SKU is typically a combination of letters and numbers that represents specific details about a product, such as its size, color, and style. This system helps businesses manage inventory efficiently and streamline the sales process. SKUs are essential for inventory management, as they allow companies to monitor stock levels and sales trends. By analyzing SKU data, businesses can make informed decisions about restocking, promotions, and product offerings, ultimately improving customer satisfaction and operational efficiency.