What is a UPC code but a technology and logistics marvel? Universal product code (UPC) barcodes are everywhere—from bananas at the grocery store to your Amazon package to your checked suitcase—and they’ve been around for more than 50 years. Today, they’ve been used to identify more than one billion products and are scanned more than 10 billion times a day, according to GS1 data.
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.
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?
If you’re a newer merchant selling and shipping products from your home, you don’t need UPC codes just yet. You can manage your ecommerce business with an internal barcode system. But you’ll outgrow that faster than you think.
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, eBay, and Google Shopping require UPC barcodes. Requirements vary by platform, so check each marketplace’s seller guidelines before launching.
- Working with third-party distribution partners.Third-party logistics providers use UPCs to track inventory.
But when should you make the switch? Here is a general guideline to follow:
- Stage 1: Starting out (up to 50 orders per month). Here, you’re likely shipping orders from your home or small office. Your own simple labels will work just fine.
- Stage 2: Hiring a shipping partner (more than 50 orders per month). As soon as you look into using a shipping company to send out your orders, you’ll need UPCs. They use these codes to make sure your products get to the right customers.
- Stage 3: Omnichannel expansion. If you want to grow by selling on marketplaces, UPCs are required. Getting them early means you won’t have to go back and re-label all your products later.
- Stage 4: Selling to other stores and retailers. If you move into manufacturing at scale or selling to retail buyers like Target or local boutiques, UPCs are needed so POS systems can read your items.
UPC components
There are three main components of UPCs that help make them operational.
UPC barcode vs. GTIN
A global trade item number (GTIN) 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.
How UPC barcodes encode product information
A UPC barcode turns your 12 digits into a pattern of black bars and white spaces. In UPCs, each bar and space is built from one to four module widths, and each encoded digit is represented by two bars and two spaces totaling seven modules.
Scanners read these modules by measuring how light reflects off the surface. A barcode inventory system is built for speed and accuracy. Omnidirectional scanners use mirrors to read codes from any angle, so you don’t need perfect alignment at checkout or in the warehouse.
Even if a label is slightly smudged, the barcode’s guard patterns and check digit ensure the data is scanned correctly.
UPC barcode quality standards
Although barcodes work relatively well under pressure, sometimes they are printed poorly and don’t work. That’s why there are industry standards to follow so your barcodes scan reliably:
- Contrast and color. Always use dark bars on a light, solid background. Black on white is the gold standard here. Avoid using red or reddish-brown for the bars. Many barcode scanners use red light to read, so red bars become invisible to the machine.
- Size and scaling. Keep barcodes between 80% and 200% of the standard GS1 barcode size, which ranges from 0.264 millimeters to 1.016 millimeters in width, depending on the type. Never squeeze a barcode by cutting its height, as shortening the bars makes it harder for the scanner to read.
- The quiet zone. The blank margin you see on both sides of a barcode is on purpose. Scanners need the empty space to tell where the code begins and ends. Keep text, logos, and packaging seams out of this area.
- Smart placement. Place the barcode on the lower-right back of the package. Avoid placing it on curves, corners, or folds. If you have a round product like a bottle, place it horizontally so the curve doesn’t distort the bars.
- Resolution. Use high-resolution images for your labels. If the ink smudges, bleeds, or has a void, the scanner can misread the width and fail to identify the product.
UPC vs. other types of product codes
UPCs are only one kind of product code. GS1 provides multiple barcode types, and companies might also use internal codes called SKUs. Different industries—from groceries to electronics—can have their own barcode systems.
Knowing the differences between these codes helps you choose the right system for your distribution channels, whether you’re selling on your own site, through Amazon, or in international retail stores.
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 number 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. Both are part of the same global GS1 system, which means they follow the same standards and can be used across global supply chains.
In 2005, a global initiative mandated that American barcode scanners be able to read both UPC and EAN codes. Whether you use UPC or EAN, your products can be identified in North America, Europe, and other parts of the world.
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. Despite its size, it encodes the same product information as the standard 12-digit version.
Basically, UPC-E just hides extra zeros in the product’s ID number and shrinks the barcode’s footprint. Once scanned, the system automatically expands it back to the full number.
Most businesses start with standard UPC codes, then switch to UPC-E when facing packaging constraints, such as a tube of lipstick or a small snack container.
International standard book number (ISBN)
ISBNs are the book industry’s barcode system. Older ISBNs were 10 digits long, but since January 2007, the industry has used 13 digits. These codes identify books by publisher, edition, and traits like binding and page count.
Bookstore owners get ISBNs from their country’s ISBN agency, which in the US is Bowker. They don’t use standard UPCs. Most ecommerce platforms accept IBSNs in place of UPCs when listing books, however, there are two times when you might need both:
- Selling gift sets that include a book along with other items like candles or mugs
- Products like journals or calendars use UPCs, even if they are sold in bookstores
How to get a UPC code
Unfortunately, you can’t create your own UPC barcodes because the system relies on a global registry. It prevents two different products from having the same number. If you made up your own digits, they wouldn’t be recognized by a retail database or shipping carriers, which would throw off inventory visibility.
To ensure your codes are unique and valid, 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.
For example, if you sell a classic cotton t-shirt in three colors and four sizes, you need 12 unique UPCs (three colors in four sizes) so you can track what item is being sold.
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. They cost $30 each and are a good choice for small businesses or side hustles with fewer than 10 products. These codes are fixed and don’t allow you to create shipping case codes or retail coupons.
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. These start at $250 and have an annual renewal fee of $50.
A company prefix is required by large retailers and lets you create packaging codes for cases and pallets. You’ll pay an annual subscription fee for your GS1 company prefix and gain access to an online tool for self-generating new barcodes.
3. What to do after obtaining UPCs
Now that you’ve got your numbers from GS1, it’s time to get your products market-ready.
Log in to your GS1 account and download your barcode images. Always download them as vector files or high-quality PNGs. Next, add your GTINs to your products. In your inventory management system, find the product ID or GTIN field and enter your 12-digit number. This links your internal SKU to the global barcode.
After, send the barcode files to your graphic designer to add the barcode to your product design. Ensure they comply with the GS1 standards mentioned above, then add them to your packaging. Be sure to test a small batch to ensure your barcodes are scannable before rolling them out across all products.
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What is a UPC 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 can someone get a UPC for a product?
- Determine how many UPC barcodes you need.
- Visit the GS1 website.
- Choose the right option.
- Provide your information and pay.
What does the UPC tell you?
A UPC tells you about the brand and the product itself. It doesn’t contain the price, but acts as a digital key that tells the store’s computer which price and description to pull from its own database.
What is the difference between a barcode and a UPC?
A barcode is a broad term for any pattern that stores data, from the lines on a cereal box to the square QR codes at a restaurant. A UPC is a type of barcode used for identifying retail products in North America.
How can someone 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.
