What Does SKU Mean On Amazon – Project FBA

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Amazon.com is a leading internet retailer of products worldwide and has been around the longest in history, founded on July 18th 1995. In 1997 Amazon introduced its first SKU (Stock Keeping Unit) to help sellers manage items and their inventory but it was only labeled as “Product ID” until 1998 when they were renamed SKUs as well as cataloged by category or product type instead of alphabetical order like before.

The “how to generate sku in amazon” is a process that allows sellers to create a unique SKU for each product. This helps Amazon’s fulfillment system identify individual products and avoid over-filling orders.

Today, Amazon is perhaps the world’s biggest supply-chain giant.

Every day, the corporation manages shops and distributes millions of items throughout the world. One delivery at a time, it is bringing buyers and sellers closer together.

Even during the Covid-19 outbreak, Amazon managed to remain afloat and become nearly a vital service, adding to the company’s already impressive resume. 

Amazon is primarily driven by its worldwide reach. Its outreach program is one of the greatest in the world, and its distribution center network is defying industry standards in the supply-chain e-commerce business.

The company’s main advantage, however, is its large number of suppliers that offer their products on Amazon’s marketplace, as well as its staff who organize, separate, and deliver everything a consumer need. 

To keep this engine running, Amazon employs distinctive procedures and moves that allow the corporation to efficiently operate its fulfillment facilities.

Amazon employs unique IDs for each product to monitor and store it. Amazon FBA personnel accomplish this difficult job with the appropriate combination of organizational abilities and micromanagement. 

Vendors send their items to an Amazon Fulfillment Center when using Amazon’s FBA (Fulfillment By Amazon) service. Amazon staff use a code known as SKU to keep these goods in the relevant inventory. The term “SKU” refers to a stock-keeping unit. 

Let’s learn more about SKUs and how Amazon utilizes them to keep things running smoothly.

What exactly is an SKU?


When Amazon items are housed in fulfillment centers, they are given a unique identifying code called an SKU.

It stands for Stock Keeping Unit, and practically every merchant on the street has probably heard of it. Some people even call it “skew.”

It’s a common phrase in Amazon FBA circles. Within the warehouse where it is stored, each product has its own SKU. If two suppliers offer the same goods, their SKUs will be different.

If a product comes in numerous sizes and colors, it will have different SKUs. SKUs are essentially identifiers for when numerous suppliers offer the same product. It assists Amazon staff in determining which goods they must deliver. 

Let’s look at an example to better grasp this. Assume you’re selling a leather belt on Amazon FBA in several sizes and colors. Of course, your leather belt will have a separate SKU for each size and color variant.

Furthermore, if another merchant sells the identical item, the items will have a whole distinct set of SKUs. All of these belts, however, will have the same UPC (Universal Product Code). A UPC is a universally recognized code for all products in supply networks. 

What’s the difference between an SKU and an ASIN?

Amazon Standard Identification Number (ASIN). It is assigned to Amazon-sold items.

It’s listed in every product’s information or directly next to the product name in your browser’s URL address bar. 

Sellers should be aware that Amazon assigns ASINs. You must supply the unique identifiers for your goods, and Amazon will generate an ASIN for you.

Recognize that each product has its own ASIN. This implies that numerous merchants offering the same item must use the same ASIN. Once again, this is an Amazon-only product ID. ASINs are not used by any other online marketplace.

SKUs, on the other hand, are utilized by both merchants and online marketplaces all over the world. For example, Amazon has its own set of SKUs called FNSKUs that it uses to keep track of its inventories (Fulfillment Number Stock Keeping Unit).

Sellers, on the other hand, may construct their own SKUs. SKUs are used to maintain inventory track, while ASINs are simply used to identify items. 

An SKU must provide critical information to staff who manage your product’s transportation and delivery. SKUs often include information such as:

  • Manufacturer
  • Originating country
  • Condition
  • Price
  • Color

The information shown above is not required for all SKUs. That list isn’t exhaustive; merchants may add extra information to their SKUs.

To make it simpler for Amazon agents to keep track of your goods, use SKUs that are less than 30 characters. Every product that is sent to customers must have an Amazon FNSKU. 

What is the purpose of an SKU?


When selling online, a stock keeping unit is essential. It’s a barcode that may be scanned to help sellers maintain track of their inventory.

It’s also useful for delivering sales data to suppliers, which helps them understand and meet inventory needs. 

The majority of e-commerce enterprises need inventory tracking. Vendors, catalogs, service providers, warehouses, and fulfillment centers all utilize SKUs to keep track of their inventory.

It assists in notifying merchants when their items need restocking. Vendors may also determine which products are selling well and which are not utilizing SKUs.

Every firm that employs SKUs is different. So, although a seller may utilize a set of SKUs for its items, when they arrive at an Amazon warehouse, they will have a different SKU. 

SKUs are used for product placement on online shopping forums. This implies that if a client buys anything, the online marketplace may recommend things with comparable SKUs.

As a result, the company’s sales and earnings have increased. 

How do you make SKUs?

There are a number of internet APIs that may let you create your own brand of SKUs.

There is no set technique or structure for SKUs. Every vendor or business may create their own SKUs. A few rules exist to make the SKU simple to use and efficient.

The initial element of the SKU is often used to categorize items, while anything following the dash might represent product variety. For example, consider the following SKU series for two color variants of the identical coffee cup model:

  • CM01-RD (Coffee Mug Model no. 01, red color)
  • CM01-BL (Coffee Mug Model no. 01, blue color)

Your SKUs should be distinctive, according to online commerce experts. Vendors should avoid using the same ones for multiple goods. They should also be brief and to the point.

When creating an SKU, avoid using spaces or complicated characters, and don’t use the product’s complete name. If you’re going to utilize Excel to handle your inventory, make sure your SKU doesn’t start with a zero.

If the number begins with a zero, Excel spreadsheets will screw it up. In the SKU, you should also avoid employing alphabets that look like numerals. 

People who need to reference items from lists or invoices will appreciate simple SKUs. SKUs that are simple to grasp make their work considerably simpler.

Furthermore, after you’ve decided on your SKUs, you can input them into your inventory management system and get regular updates. 

What is the location of your SKU?


The solution is straightforward. Your SKUs may be located on the label or price tag of your goods. As a result, the SKU will be prominently displayed on the label, near the barcode. 

It serves both a name and a description of the goods included therein. It informs the client or inventory management about who made the goods, when they did it, what color it is, how old it is, and so on. Furthermore, it may also show the product’s pricing. 

You usually don’t have access to product price tags if you run an online marketplace. As a result, SKUs may be added to the product information section. Vendors must, however, guarantee that the SKU appears on the customer’s receipt. 

Customers may ignore SKUs since they are not intended to help them. Instead, they’re meant to provide the vendor a picture of the merchandise. 


In the e-commerce market, SKUs are a valuable asset. They are the most accurate sales indicators and provide merchants with a detailed picture of their inventory.

SKUs alert merchants when their inventory is running short in the market, allowing them to swiftly resupply the items they need. 

SKUs are not the same as ASINs. SKUs may be generated and used by any vendor or inventory management, whereas Amazon provides unique IDs to the items it permits on its marketplace.

Amazon serves as an inventory manager for all of its vendors in this situation. As a result, the firm has implemented a one-of-a-kind SKU system. FNSKUs let Amazon find, track, and ship the correct goods to the right consumer. 

Are you able to create your own SKUs? Sure!

You may construct your own SKUs suited to your company’s comfort since SKUs are simply a technique of keeping information. They must be simple to understand, straightforward, and concise.

They must provide the client or the inventory manager all required information. Amazon’s FNSKU mechanism is mostly used to separate suppliers offering the same items.

As you would expect, Amazon assigns various SKUs to different providers, enabling it to execute flawless deliveries.

The “seller sku example” is a term used by Amazon sellers to describe the unique identifier of their products. The SKU is used by Amazon not only for inventory purposes, but also for tracking sales data across various marketplaces.

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