As an online store, you may already have your hands full with myriad functions associated with operating your business. However, when you are also the manufacturer of the products you sell, you have a few additional functions to fulfil in the process.
One of those functions is navigating the process of generating and implementing a UPC for each of the products. With that in mind, let us start by understanding the definition of a product UPC and its importance and then delve deeper into the process of generating UPC for products.
What is Product UPC?
A UPC Code or a Product UPC refers to the Universal Product Code — a unique barcode used for identifying products in a store. A typical UPC/Universal Product Code consists of 12 digits that may help you track and streamline your inventory and checkout process.
Every authentic product placed on a store shelf has to contain a UPC that can act as its unique identifier and match the one registered in retail databases. Generally, your UPC will be a combination of numbers and bars logically designed to encode critical information.
Whether you run an online store or a brick-and-mortar store, the UPC is the code that’s scanned to retrieve details required to process customer orders and transactions, especially at the point of sale.
4 Types of UPC
Here are some of the common types of UPCs you may come across and use as a part of the global retail environment:
1. ITF-14 Barcodes
ITF-14 barcodes are one-dimensional barcodes used to manage and track products in your supply chain. It is a 14-digit code used to carry the GTIN-14 data structure and is predominantly leveraged by retail organisations for automated shipping and transportation logistics.
Modern warehouses to identify pallets, cases, and/or cartons. The ITF-14 barcodes are used by modern warehouses and storage facilities to identify pallets and/or cartons.
2. QR Codes
QR Codes or Quick Response Codes, are some of the most popularly used two-dimensional barcodes today. These are used in shipping to store and track all the relevant information about your shipment.
QR codes are known for their enhanced and faster readability and large storage capacity. Individuals can encode tracking numbers that other parties in the supply chain can access by doing a quick scan.
3. GS1 Databar Barcodes
GS1 (Global Standards) DataBar barcode is a 14-digit numeric code used to uniquely identify specific products, especially fresh food products. These barcodes hold the most vital information about specific products.
These barcodes are most often associated with products having a definitive expiration date and are visually small. Most barcode scanners can scan these barcodes especially due to the role it plays in the supply chain.
4. GS1-128 Barcodes
A GS1-128 barcode, also known as UCC-128 barcode is considered to be the global standard for data exchanges between companies. However, in the context of shipping, this barcode is used to maintain the visibility of your carton while it is passing through the supply chain.
It is used by most retailers when encoding limited information such as expiry dates, serial numbers, and product numbers.
More importantly, there are three types of UPC that retailers should be aware of:
1. UPC-A: The standard type of barcode used in retail or POS transactions is the UPC-A, which consists of 12 digits. This type of UPC primarily works on encoding data known as GTIN 12.
2. UPC-E: Another type of UPC barcode, UPC-E consists of 8 digits and is mostly used when there is not enough space to execute the UPC-A barcode. As a result, you will find it on smaller products such as cosmetics and cigarettes.
3. EAN-13: European Article Number or EAN is a 13-digit barcode known to identify retail products. This barcode represents a logical sequence with the initial 3 digits representing the country code, followed by the manufacturer and then the product code.
3 Reasons Why the UPC is Important
Now that we have learned the meaning of UPC and its types, let us understand why it is considered so important in a typical retail environment.
While one of the most straightforward yet important aims of the UPC is to streamline the retail process, it also goes a long way in helping manage your inventory and supply chain. Here are some of the benefits that retailers can expect with the help of UPC:
1. Increased Efficiency of Transactions
Before scanners and barcodes were introduced into the retail environment, storeowners and cashiers had to record product prices and generate bills manually. This manual approach was more time-consuming and increased the possibility of billing errors.
When UPCs were introduced, storeowners could carry out quick scans to retrieve the entire history associated with a specific product. As a result, transactions have now become safer, quicker, and more efficient.
2. Streamlining Order Fulfilment
UPCs are used for more than facilitating the billing or checking out your orders and products. They can also help you handle different areas of your eCommerce or online store such as picking, packing, warehousing and order fulfilment.
What’s more, UPC numbers for products can help you streamline your orders and make the process of completing them more accurate. UPCs can even help you complete orders more quickly as they can minimise errors and make the entire process more accurate and quicker.
3. Better Tracking of Inventory Movements
Your UPC can play a role in navigating multiple processes for your online stores, due to which they are often integrated and used in inventory and warehouse management. As soon as a UPC product code is scanned, your inventory management system can capture the data and go through the history and movement associated with that specific product.
UPCs can also help you quicken and optimise your supply chain management by generating real-time insights that do not require physical counting. As a result, you’ll be able to track the movement of your inventory smoothly and in real-time.
3 Components of a UPC
Now that we have looked at the benefits of UPCs, let us also learn about some of their primary components. While a typical UPC of a product is 12 digits, the most logical way to interpret one is to understand the various components that make up the code.
Here are the three components that you should know about:
1. Manufacturer ID Code
The first part of a typical UPC refers to the manufacturer or the company that produced the product. This part of the UPC is about six to nine digits and refers to the number GS1 has assigned to the company to identify their intellectual rights to a specific product.
Basically, a great way to determine whether any two products have been manufactured by the same company is to compare their first six to nine digits.
2. Product Code/Number
The next five numbers after the manufacturer code refer to the product code or item number. This number or code is unique to every product and even its many variations. For example, the product code associated with a red pen in an online store is different from a blue pen of the same model.
3. Check Digit
The last digit of your UPC code on products is known as the check digit, determining the code's accuracy. It validates and approves the accuracy of the UPC by cross-checking it with the one in your database and ensures that it is not identical to any other UPC. The check digit of your UPC is the sum of all the previous digits in it, and it is required so that your barcode is scanned properly.
UPC vs Other Product Codes
When we talk about UPC on products, it is important to acknowledge that it is only one type of product code you must know about. Apart from UPC, here are some of the other product codes that you should be aware of:
1. GTIN
A Global Trade Item Number combines with a Product UPC to complete a barcode printed on products. GTIN is essentially a numeric code that’s contained within the barcode whereas the UPC is the part of the barcode that can be scanned. When combined, they provide all the necessary information about a product to be used with a POS.
2. ASIN
ASIN, or Amazon Standard Identification Number, is a number unique to Amazon and is a way for the gigantic workplace to keep track of products. In some cases, the ASIN of your product may be different than the UPC, but in most cases, it will only be a slight variation from the UPC.
3. EAN
European Article Number (EAN) is similar to UPC and is primarily used to identify products in Europe. If a product is manufactured in Europe, it is likely to have an EAN on it rather than a UPC. In contrast to UPC, EAN has 13 digits, wherein the extra digit often causes a lot of issues with US-based POSes.
4. SKU
SKU, the acronym for stock keeping unit, is also a type of product code that manufacturers and companies assign to their inventory so they can maintain the stock levels. SKUs are specific and unique to each company, as it is the company that creates the SKU code.
SKUs and UPCs serve the same purpose, but the latter is predominantly for external uses, and SKUs are for internal purposes. Basically, two retailers selling a product by the same manufacturer will have the same UPC but different SKUs for the product.
5 Applications of UPC for Online Stores
Now that we have learned about the benefits and components of a product UPC number, let us delve deeper into the applications it has in the online retail environment. Aside from the benefits that we have already discussed before, here are a few other applications that it has for online stores:
#1 Price Tracking and Dynamic Pricing
Online stores can use a wide range of strategies to stay competitive. Among these strategies, is the ability to use product UPC search to track product prices across various online stores and marketplaces on which you sell your products. You can also use the UPC to track and monitor any changes in pricing over time.
Using it in combination with pricing tools that help you adjust prices based on competitor pricing or demand can be beneficial. You can also apply and implement pricing policies consistently and automate prices to be updated based on changes in supply and demand.
#2 Product Search and Filtering
For online stores, UPCs play a crucial role in implementing and improving product search functionality on the website. Customers or store executives can use the UPC by entering it in the search bar, to find products directly on the website even if they don’t know its exact name or description.
As a result, UPC can simplify the overall search process for your customers and enables store owners to create highly detailed product catalogues.
#3 Supplier and Vendor Management
One of the areas that can often get challenging for online stores is communication and management with multiple suppliers and vendors. UPCs can be used to track the supplier that delivers products you sell on your online store helping you maintain correct ordering and relationship management.
UPCs can also help you facilitate efficient reordering and coordination processes with your suppliers and vendors. By assigning a specific UPC to each product, you can streamline the process of procurement and vendor management.
#4 Sales Analytics and Reporting
UPCs can tell you a lot of details about a specific product based on the amount of data that has been encoded in them. Most UPCs will help online stores track sales performance and inventory turnover, and the data collected from them can be used to deduce which products are selling or not selling well.
Thus, UPCs can empower store owners to make highly informed decisions about the stock and improve overall profitability and customer satisfaction.
#5 Product Authentication and Anti-Counterfeiting
With the rise of fake items and scams making the rounds in the global online retail sphere, authenticating and validating the product is as important as any other process. UPCs can play a crucial role in product authentication systems and strategies, especially in the case of high-value or luxury goods.
For online stores, this would help prevent accidental sales of counterfeit items, which can otherwise negatively impact your credibility. Some online stores even go as far as offering UPC-based serial number checks so that store owners and customers can verify the product’s origin.
How to Obtain UPC Codes for Products?
Now that we have sufficiently delved into the whats and whys of UPCs, let us take a detailed look at the process of obtaining UPCs for your products:
Step #1: Determine The Number of UPCs Required
The process of obtaining UPCs starts with determining the number of unique products you have in your store catalogue. This includes all kinds of variations in terms of colour, size and other specific attributes.
As mentioned before, each product variant will have its own unique UPC. You must ensure that you have an estimate of the required UPC for products in advance before you even begin the application process.
Step #2: Choose Between a GS1 Membership or Reseller
Typically, there are two ways to go about obtaining UPCs for your products. Firstly, you can opt for a GS1 membership which will give you more control over the process and help you obtain UPCs directly.
Another alternative you can try out is opting for a reseller who will offer affordable rates and navigate the entire process in your place. You can choose either option to proceed with getting your product UPC codes.
Step #3: Visit the GS1 Website and Register
You can now proceed with the actual application process by visiting the GS1 application website. If you chose to opt for a GS1 membership in the previous step, this is the way forward for you.
Once you land on the GS1 barcode application website, you will need to register for an account using your business email ID and your government-issued ID proof for authentication. Once done, you can click the ‘Get a Barcode’ option to proceed with the process.
Step #4: Choose the Appropriate Option
When you register your interest in buying a UPC for your products, GS1 will offer you multiple options to purchase them.
The first option you can opt for is buying individual GTINs for limited products in your catalogue. If you have a smaller catalogue or plan to sell products through limited launches, this may be the ideal option for your online store.
For example, if your online store specialises in selling limited products based on seasonality, you can obtain GTINs for just those products.
The second option you can opt for is creating a GS1 company prefix. When you have a large catalogue or expect to have one that keeps expanding in the future, you’d want to generate the first six to nine digits of the UPCs on the website instead of generating individual GTINs.
A company prefix will help you generate unlimited UPCs in the future and help you track products seamlessly, even as your catalogue grows.
Step #5: Proceed With Payment
Once you have navigated the registration process by yourself or through your reseller, and chosen the right option for purchasing your UPCs, it is time to proceed with the payment for your transaction.
Once you choose the right purchasing option for your product UPCs, you’ll be prompted to enter your contact details. Proceed to enter your details and complete the payment to finish the purchase.
Step #6: Assign and Implement
Now that you have a bunch of GTINs corresponding to your products, or have successfully generated a manufacturer prefix, it is time to assign a unique code to each product in your catalogue. Be careful when assigning a UPC to each product in your catalogue or inventory.
Once your records are updated accordingly, it is time to ensure that your packaging and labelling incorporate and reflect the right UPC. Lastly, you must enable better tracking and management of your products by updating and maintaining accurate records of all the products and their respective UPCs.
Concluding Remarks
The UPC associated with a product has many applications in a trade environment. Right from automating point-of-sale systems to helping companies track their inventory, UPCs can enable multiple functions for a typical online store. Learning more about it and implementing it correctly is pivotal for online stores and can help them manage and track their product catalogue efficiently — no matter how big.
Get a quote from the PACK & SEND website and learn more about our services, to associate with a seasoned 3PL service provider to assist you.
Frequently Asked Questions (FAQs)
What is the UPC of a Product?
The UPC of a product is a 12-digit code that can be used to uniquely identify a product and scanned using a barcode scanner. These barcodes are used to facilitate logistics, point-of-sale and inventory management of products associated with a company.
Are UPCs Different from SKUs?
UPCs and SKUs serve the same purpose, but while an SKU is used internally and issued by a company, a UPC is for external uses and is generated by a regulatory authority. A specific product can have multiple SKUs based on the number of retailers that sell it, but it can only have one UPC.
How Do I Look Up a UPC?
Use the Barcode Lookup program to search or look up UPC by product name, ISBN or EAN code and find the item corresponding to that code. You can also use this way of product UPC lookup to find products using the code.
What Methods and Tools Can I Use to Generate UPCs?
Firstly, you can register as a member on the GS1 website and provide all the necessary details to generate UPCs for your products. Apart from this, you can also have an authorised reseller deal with the entire process and purchase the UPC from them.