Amazon Specific SKUs are product SKUs a brand creates exclusively for Amazon, so that a price drop on the same item at another retailer, such as Walmart, cannot cost the brand its Amazon 📝Buy Box.
The risk comes from how Amazon awards the Buy Box, which it now calls the Featured Offer. Amazon states that Featured Offer prices are commonly at or below the lowest priced alternatives, and it shows sellers a competitive external price for comparison. If a brand sends the same SKU to Walmart and Amazon, then when Walmart drops the price, Amazon will break the brand's Buy Box.
Giving Amazon its own SKU, such as a distinct item, pack size, or bundle, removes the like-for-like comparison with other retailers, so the brand's Amazon listing is not judged against another retailer's discount on an identical product.
The practice is among the Amazon selling lessons John Zdanowski gathered from 📝Straight Up Growth, a San Diego digital marketing firm that specializes in growing emerging consumer brands' sales on Amazon.