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What is an SKU, and how is it different from a barcode?

In short: SKU stands for stock keeping unit: an internal code a shop gives each item and each version of it, such as size or colour, so it can count each one in stock.

The full guide: Retail barcodes

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SKU stands for stock keeping unit. It is a code a shop or company creates for each item it sells, usually letters and numbers with a meaning, like TSH-BLK-L for a black shirt in large. It differs from a barcode because the barcode usually comes from the manufacturer, while the SKU is your own internal system, built around the way you organise your stock.

In a clothing shop downtown, one shirt can come in five sizes and three colours: fifteen different SKUs. Each one has its own count on the shelf, so you know the black medium has sold out while the white large is still piled up. During a stocktake or when ordering from a supplier, talking in codes is faster and far more precise than describing the piece.

SKU or barcode?

SKUBarcode
Who sets itThe shop itselfUsually the manufacturer, with a GS1 number
What it looks likeLetters and numbers that mean something to youDigits under a row of bars
Who reads itStaff by eye, the software by searchA scanner or phone camera
Sizes and coloursOne code per size and colourOne barcode per option if you print labels

How to set up item codes

  • Keep codes short and stable, and do not change the system halfway through the year.
  • Avoid characters that look alike, such as the letter O and zero.
  • Never reuse a code for two items, even similar ones.
  • Start with the category, then colour, then size, so staff can read it without a key.

In Ghalleh you add sizes and colours under one model, each option gets its own barcode and stock count, and you print its labels on the receipt printer. If your list already sits in an Excel file, you import it whole instead of typing it.

The Ghalleh items screen: every item with its price, barcode and the quantity left

A shop example

A shoe shop in Zarqa sells one model at JOD 34.000 in three colours and five sizes, and gives each version a code like SHO-BRN-42. At the end of the month it sees that brown size 42 sold out twice, while black size 45 has not sold at all.

Common questions

What is the difference between an SKU and a barcode?

A barcode is a number a scanner reads and usually comes from the manufacturer. An SKU is an internal code you choose to organise stock. One item can have both.

What does SKU stand for?

Stock keeping unit. In Arabic shops it is usually called رمز الصنف, the item code.

Does every shop need SKUs?

A small shop can manage with barcodes and item names. SKUs start to matter when sizes and colours multiply or when you deal with several suppliers.

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