SKU (Stock Keeping Unit)

Term from Ecommerce industry explained for recruiters

A Stock Keeping Unit (SKU) is a unique code or identifier that retailers and ecommerce businesses use to track and manage their products. Think of it like a product's fingerprint - each variation of a product (size, color, style) gets its own SKU. For example, a blue t-shirt in size medium would have a different SKU than the same t-shirt in red or in size large. This system helps businesses keep track of their inventory, manage sales, and organize their warehouse operations. When someone mentions SKUs in their resume, they're typically showing experience with inventory management systems, product cataloging, or ecommerce platforms.

Examples in Resumes

Managed inventory system of 10,000+ SKUs across multiple warehouse locations

Reduced inventory costs by 15% through efficient SKU rationalization and management

Implemented new Stock Keeping Unit tracking system that improved order accuracy by 25%

Created and maintained product database of 5,000+ SKUs for online store

Typical job title: "Inventory Managers"

Also try searching for:

Inventory Specialist Product Manager Ecommerce Manager Warehouse Manager Supply Chain Coordinator Inventory Control Specialist Product Catalog Manager

Example Interview Questions

Senior Level Questions

Q: How would you implement a SKU management strategy for a company expanding from single-channel to multi-channel retail?

Expected Answer: Look for answers that discuss creating a consistent SKU system across all sales channels, considering warehouse locations, integration with existing systems, and training staff on the new system. They should mention inventory tracking, reporting, and how to handle product variations.

Q: Tell me about a time when you improved inventory efficiency through SKU rationalization.

Expected Answer: Strong answers should include examples of analyzing sales data, identifying slow-moving products, consolidating similar items, and measuring the impact on inventory costs and storage space.

Mid Level Questions

Q: How do you create an effective SKU naming convention?

Expected Answer: Should explain how to develop logical, scalable product codes that include important product attributes like department, category, size, and color, while keeping them simple enough for staff to understand and use.

Q: What systems have you used for SKU management and what were their pros and cons?

Expected Answer: Should demonstrate experience with inventory management systems, understanding of how SKUs integrate with order processing, and ability to train others on system use.

Junior Level Questions

Q: What is a SKU and why is it important in retail?

Expected Answer: Should explain that SKUs are unique product identifiers used to track inventory and explain basic benefits like easier stock counting, order processing, and inventory management.

Q: How do you ensure accuracy when working with SKUs?

Expected Answer: Should mention double-checking numbers, using scanners when available, regular inventory counts, and following established naming conventions.

Experience Level Indicators

Junior (0-2 years)

  • Basic inventory counting and tracking
  • Understanding of SKU systems
  • Data entry and basic reporting
  • Use of inventory management software

Mid (2-5 years)

  • SKU creation and management
  • Inventory analysis and reporting
  • Product categorization
  • System implementation and training

Senior (5+ years)

  • Inventory optimization strategies
  • Multi-channel inventory management
  • SKU rationalization
  • Team leadership and system implementation

Red Flags to Watch For

  • No hands-on experience with inventory management systems
  • Inability to explain basic inventory concepts
  • No experience with product categorization or organization
  • Poor attention to detail in data entry tasks