What Is a UPC? How To Get a Universal Product Code

If you’ve ever been humbled in the self-checkout line, trying and failing to scan a product under the mounting threat of the “Please see attendant” machine freeze, you’ve encountered Universal Product Codes (UPCs). UPC barcodes are everywhere—from egg cartons to sneakers—and have been around for more than 50 years.

Brick-and-mortar retail stores rely on UPCs for speedy checkout and accurate inventory management, but their utility for small ecommerce businesses is a bit more complicated.

Read on to learn how UPCs work, how they compare to other scannable codes, and whether or not you need them for your ecommerce company.

What is a UPC code?

A UPC, or Universal Product Code, is a 12-digit barcode that identifies products and their manufacturers. Retail stores and logistics third parties (like warehouses) scan these unique UPCs to import price data and track inventory. UPCs constitute a standardized product identification system managed by the Global Standards Organization (GS1). You might also see them referred to by their technical name, “UPC-A barcodes.”

UPCs are unique to product types, not individual products. For example, two pairs of sneakers in the same model, size, and color would receive the same code.Wikicommons

In the retail industry, workers scan UPCs to create faster checkout experiences and maintain up-to-date inventory accounting. In the ecommerce industry, UPCs offer these benefits:

• Inventory management. UPCs facilitate easy product tracking so you know which products have sold and which need restocking. They can also convey information like expiration dates for proper inventory management across your supply chain.
• Accurate fulfillment. If you fulfill orders in a warehouse, UPC barcodes ensure workers pick and pack accurately. When workers scan a UPC, its corresponding product information immediately populates on the barcode reader.
• Standardization. UPCs are a global barcode system, so if you sell across ecommerce marketplaces or brick-and-mortar retailers, you can trust that these different merchants (for the most part) will use UPCs. In fact, they’ll likely require you to provide UPC barcodes for your products. 

Do I need UPC codes for my ecommerce business?

You won’t need UPC codes if you run a small, direct-to-consumer ecommerce company and ship your products from home. Similarly, suppose you run a direct-to-consumer business with your own warehouse. In that case, you might opt for your own barcode system to organize products (you can even try out this barcode generator).

You will need UPC barcodes, however, in these scenarios:

• Selling to wholesale or retail stores. If you sell in physical retail locations, you’ll need UPCs so store employees can scan your products. If you sell to wholesalers, you’ll want UPCs so they can inventory your products. 
• Selling on ecommerce marketplaces. Ecommerce marketplaces like Amazon require UPC barcodes.
• Working with third-party distribution partners. Third-party logistics providers use UPCs to track inventory.

Even if you currently sell from home and don’t need UPCs, consider them if you plan to grow your business and one day sell in retail stores or ecommerce marketplaces.

UPC components

A GTIN (Global Trade Item Number) and a UPC form a complete barcode. The UPC is the series of black lines, and the GTIN is the numerical printed underneath. Together, they provide near-instant product information when used with a point-of-sale (POS) system or other software with scanning functionality.

The 12-digit GTIN comprises three sections of numbers, each encoding different information about the product. Here are the three parts of the GTIN:

1. UPC company prefix

The 6-digit manufacturer identification number forms the first half of the UPC. It’s unique to each manufacturer and identifies who made the product.

2. Item number

The next five digits represent the item number unique to each product variant. For example, a 16 gigabyte version of a smartphone will have a different item number than the 32 gigabyte version of the same model.

3. Check digit

The final digit in the GTIN is the check digit. It’s calculated with a somewhat complicated algorithm involving the previous 11 digits (learn more about it on the GS1 website). The check digit validates the UPC’s accuracy: If the check digit is wrong, the UPC won’t scan properly.

UPC vs. other types of product codes

• SKU
• EAN
• ASIN
• UPC-E
• International Standard Book Number (ISBN)

UPCs are only one kind of product code. GS1 provides multiple barcode types, and companies might also use internal codes called SKUs. And different industries—from groceries to electronics—can have their own barcode systems. Here’s a look at 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. Instead, they are unique to each company and used for internal tracking only. So when would you need SKUs?

Let’s say you run a direct-to-consumer soda brand and need an organized warehouse where workers can quickly sort incoming products. You might create a SKU system with letter combinations indicating flavors and numbers indicating expiration dates. This way, employees can quickly see which products belong together and sort which to send out first based on expiration dates. This system provides vital information without requiring a scanner.

EAN

An EAN, or European Article Number, is the European version of a UPC. Unlike 12-digit UPCs, EAN barcodes contain 13 digits. Since 2005, a global initiative has mandated that American barcode scanners be able to read both UPC and EAN codes.

ASIN

ASIN stands for Amazon Standard Identification Number. As the name suggests, this number is unique to Amazon, and every product sold on the site has one. It’s Amazon’s way of keeping track of the millions of products in its ecommerce marketplace.

UPC-E

A UPC-E code is a compact version of the UPC-A barcode, composed of just six digits. You might see this barcode on products with limited surface area, like yogurt cups or makeup. 

International Standard Book Number (ISBN)

ISBNs are the book industry’s barcode system. These codes are 10 to 13 digits long (depending on whether they were assigned before or after 2007) and identify books by publisher, edition, and physical traits like binding and page count.

How to get a UPC code

Unfortunately, you can’t create your own UPC barcodes. To ensure uniqueness and validity, you must purchase them from GS1. Here’s how to do it: 

1. Determine how many UPC barcodes you need

Estimate the number of unique barcodes you need, considering how many products you sell and accounting for variations in size, color, and other distinguishing attributes. Remember: You need a UPC barcode for every product variant.

2. Visit the GS1 website and select your option

Start by visiting GS1’s UPC application page. GS1 offers several ways to purchase UPCs. One option is to buy individual GTINs for a small number of products.

A second option is to create a GS1 company prefix. Suppose you need to develop UPCs for multiple products (or expect to do so in the future). In that case, a company prefix will allow 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.