What is SKU?
Stock Keeping Unit
A Stock Keeping Unit (SKU) is a unique identifier for each product variant in your catalog. One product with 3 sizes + 5 colors = 15 SKUs.
- SKU
- A Stock Keeping Unit (SKU) is a unique identifier for each product variant in your catalog. One product with 3 sizes + 5 colors = 15 SKUs.
Why SKUmatters
Tracks inventory, pricing, and sales per variant. SKU-level analysis reveals best-sellers, slow movers, and margin mix. Essential for retail, ecommerce, and quick-commerce operations.
Common mistakes with SKU
- 1
Treating gross revenue as success. Contribution margin per order is what determines viability.
- 2
Counting first-purchase ROAS as the KPI. 90-day LTV ROAS is the operational target.
- 3
Building Shopify theme on platform defaults. Custom blocks and progressive enhancement deliver 15-30% CVR lift typical.
How to improve SKU
Push toward 30%+ contribution margin on every SKU. Anything below subsidizes operations from elsewhere.
Build subscription or replenishment SKUs into 20%+ of revenue. Predictable revenue compounds.
Optimize for repeat-purchase rate as the operating metric. New-acquisition spend should follow LTV, not vanity revenue.
Common questions about SKU
What is SKU?▾
Why does SKU matter for marketing teams?▾
Need help applying SKUto your business?
Book a free 30-min audit. We will benchmark your SKUagainst your industry and flag what to fix first.
Book a free audit