Have you ever struggled to scan an item at the self-checkout, facing the dreaded “Please see attendant” message? If so, you’ve encountered a Universal Product Code (UPC). These barcodes are ubiquitous, appearing on everything from food packaging to electronics, and have been a retail staple for over half a century. Understanding What Is A Upc and its role is crucial for any business involved in product sales.
While brick-and-mortar stores heavily rely on UPCs for efficient checkout processes and precise inventory control, their significance for smaller e-commerce businesses can be more nuanced.
Let’s dive into the world of UPCs, exploring their functionality, comparing them to other types of scannable codes, and determining whether your e-commerce venture needs them.
Understanding What is a UPC Code
A UPC, or Universal Product Code, is a 12-digit barcode that serves as a unique identifier for products and their respective manufacturers. Retail establishments and third-party logistics providers (such as warehouses) utilize these unique UPCs to quickly access pricing information and meticulously track inventory levels. UPCs are governed by the Global Standards Organization (GS1), ensuring a standardized system for product identification. You might also hear them referred to as “UPC-A barcodes,” their technical name.
Two pairs of sneakers in the same model, size, and color share the same UPC code.
In the retail environment, scanning UPCs streamlines the checkout experience and enables real-time inventory management. Within the e-commerce sector, UPCs offer several key advantages:
- Inventory Management: UPCs facilitate straightforward product tracking, providing valuable insights into sales performance and restocking needs. They can also encode critical data like expiration dates, ensuring proper inventory management throughout the supply chain.
- Accurate Fulfillment: When order fulfillment occurs in a warehouse setting, UPC barcodes play a vital role in ensuring accurate pick and pack processes. Scanning a UPC instantly displays the corresponding product information on the scanner.
- Standardization: UPCs represent a globally recognized barcode system. If you distribute products across various e-commerce marketplaces or physical retail stores, UPCs ensure compatibility and recognition across different platforms. Many marketplaces and retailers may even require you to provide UPC barcodes for your products.
Do You Need UPC Codes for Your E-Commerce Business?
If you operate a small, direct-to-consumer e-commerce business and ship your products directly from your home, UPC codes might not be immediately necessary. Similarly, if you manage a direct-to-consumer business with your own dedicated warehouse, you might prefer implementing your own internal barcode system for product organization (you can even explore using a barcode generator).
However, UPC barcodes become essential in these specific scenarios:
- Selling to Wholesale or Retail Stores: If you plan to sell your products in physical retail locations, UPCs are mandatory for store employees to scan your items at checkout. Selling to wholesalers also necessitates UPCs for efficient inventory management on their end.
- Selling on E-Commerce Marketplaces: Major e-commerce platforms, such as Amazon, typically require UPC barcodes for product listings.
- Working with Third-Party Distribution Partners: Third-party logistics (3PL) providers rely on UPCs to accurately track and manage inventory within their warehouses.
Even if your current operations don’t demand UPCs, consider their potential value if you anticipate future business expansion into retail channels or e-commerce marketplaces.
UPC Components: Decoding the GTIN
A complete barcode consists of a GTIN (Global Trade Item Number) and the UPC itself. The UPC refers to the series of black lines, while the GTIN is the numerical sequence printed beneath it. Together, they provide almost instant product information when used with a point-of-sale (POS) system or other software with scanning capabilities.
The 12-digit GTIN is divided into three distinct sections, each encoding specific product details. Let’s examine these components:
1. UPC Company Prefix
The first six digits represent the manufacturer identification number. This number is unique to each manufacturer, identifying the product’s source.
2. Item Number
The next five digits represent the unique item number for each product variant. For example, a smartphone with 128GB of storage would have a different item number than the same model with 256GB of storage.
3. Check Digit
The final digit of the GTIN is the check digit. It is calculated using a complex algorithm involving the preceding 11 digits (more details can be found on the GS1 website). The check digit verifies the UPC’s accuracy. If the check digit is incorrect, the UPC will not scan properly.
UPC vs. Other Types of Product Codes
UPCs are just one type of product code available. GS1 offers various barcode types, and businesses may also use internal codes called SKUs. Different industries, from groceries to electronics, may also have their own barcode systems. Let’s explore some other common types of barcodes:
SKU
A stock keeping unit (SKU) is an internal product identification code consisting of letters and numbers. GS1 does not distribute SKUs; they are unique to each company and used for internal tracking purposes only. When would you need SKUs?
For example, if you run a direct-to-consumer coffee bean business, you might create a SKU system to organize your warehouse efficiently. You could use letter combinations to represent the origin of the bean and numbers to represent the roast level. This would allow employees to quickly identify and sort products without needing a scanner.
EAN
An EAN, or European Article Number, is the European counterpart to the UPC. Unlike the 12-digit UPC, EAN barcodes contain 13 digits. Since 2005, a global initiative has mandated that American barcode scanners can read both UPC and EAN codes (Source).
ASIN
ASIN stands for Amazon Standard Identification Number. As the name implies, this number is specific to Amazon, and every product sold on the platform has one. This is how Amazon tracks the millions of products sold on its marketplace.
UPC-E
A UPC-E code is a compressed version of the UPC-A barcode, consisting of only six digits. This barcode is often found on products with limited surface area, like chewing gum packs or small cosmetic items.
A UPC-E code is used on smaller products to save space.
International Standard Book Number (ISBN)
ISBNs are the book industry’s barcode system. These codes range from 10 to 13 digits long (depending on whether they were assigned before or after 2007) and identify books by publisher, edition, and physical attributes such as binding and page count.
How to Obtain a UPC Code
You cannot generate your own UPC barcodes. To guarantee uniqueness and validity, you must purchase them from GS1. Here’s the process:
1. Determine Your UPC Barcode Needs
Estimate the number of unique barcodes you’ll require, considering the number of products you sell and variations in size, color, and other distinguishing attributes. Remember that a unique UPC barcode is required for each product variation.
2. Visit the GS1 Website and Select Your Option
Start by visiting GS1’s UPC application page. GS1 provides different ways to purchase UPCs. One option is to buy individual GTINs for a small number of products.
Another option is to create a GS1 company prefix. If you need to develop UPCs for multiple products (or expect to do so in the future), a company prefix allows you to generate GTINs with uniform manufacturer identification numbers to aid product tracking.
You’ll pay an annual subscription fee for your GS1 company prefix and gain access to an online tool for self-generating new barcodes.
Universal Product Code FAQ
What is the meaning of Universal Product Code?
A Universal Product Code (UPC) is an encoded product identification number that can be scanned to reveal information about an individual product. UPCs identify and track products as they are sold, shipped, and received.
How do I get a UPC?
- Determine how many UPC barcodes you need.
- Visit the GS1 website.
- Choose the right option.
- Provide your information and pay.
Do all products have UPCs?
Most retail products have UPCs to facilitate speedy checkout and accurate inventory management. Handcrafted goods like art and local food products often do not carry UPCs. E-commerce products shipped without warehouses or third-party logistics providers might also not have UPCs.
How do I look up a UPC?
You can use a database like Barcode Lookup or Scandit to look up a UPC. Enter the UPC on your product, and the service will provide its details.
Do I need a UPC to sell on Amazon?
If you plan to sell on Amazon, you will need a UPC or another type of product identifier, such as an EAN or ISBN. Amazon uses these codes to ensure product authenticity. Sometimes, you can apply for an exemption if your product doesn’t have a UPC, EAN, or ISBN. You will also need an ASIN or Amazon Standard Identification Number.
Where can I find Universal Product Codes?
You can typically find a product’s Universal Product Code (UPC) on its labels and packaging. UPC codes are usually placed somewhat prominently for easy scanning by retail and warehouse workers.
