You’re at the checkout, loading your groceries onto the belt for the cashier to scan. The screen flashes with each item’s price, product name, and sometimes even a discount. But what’s happening here?
That’s the UPC (Universal Product Code) at work, a barcode system that keeps modern retail fast and accurate. While these codes are great for inventory management, they may not be what small e-commerce businesses need.
Keep reading to discover how UPCs work, stack up against other scannable codes, and whether your e-commerce business needs them.
Table of Contents
What is a UPC, and why is it everywhere?
Do I need a UPC for my e-commerce business?
What’s inside a UPC? Breaking down those 12 digits
Example UPC breakdown
UPC vs. other product codes: What’s the difference?
1. SKU (Stock Keeping Unit)
2. EAN (European Article Number)
3. ASIN (Amazon Standard Identification Number)
How to get a UPC (without getting scammed)
Step 1: Figure out how many UPCs you need
Step 2: Register with GS1 (the only official source)
Bottom line
What is a UPC, and why is it everywhere?
A UPC (Universal Product Code) is that black-and-white barcode you see on almost every product in a store. Rather than being a random stripe pattern, it is a globally recognized tracking system that helps businesses do the following:
✅ Sell products in stores and online (Walmart, Amazon, Target—all of them use UPCs).
✅ Keep inventory organized (no more guessing if you’re out of stock).
✅ Ensure the right product scans at the right price (no more pricing mix-ups).
But here’s the best part: UPCs are universal. That means the same product will have the same UPC regardless of where retailers sell them. So, if you’re selling a blue ceramic coffee mug, its UPC will be identical whether in a store in New York, listed on Amazon, or in a warehouse in California.
Do I need a UPC for my e-commerce business?
Not every business needs UPCs. But then, it’s also non-negotiable for some. Here’s what to consider when deciding if your business needs UPCs:
- You might not need a UPC if you sell on your website (Shopify, WooCommerce, etc.). Many sellers use SKUs (Stock Keeping Units) instead, which are internal codes for inventory tracking.
- Selling on Amazon, Walmart, or other big retailers? You’ll need a UPC. Platforms like Amazon FBA (Fulfilled by Amazon) require official UPCs registered through GS1. So, no shortcuts here.
- Dropshipping or print-on-demand? Since you’re not holding or shipping the inventory, you likely don’t need a UPC. The manufacturer or supplier handles it for you.
- Even if you don’t need a UPC today, you will probably need one later if you plan to sell on multiple platforms or in physical stores.
What’s inside a UPC? Breaking down those 12 digits
A GTIN (Global Trade Item Number) and a UPC combine to create a complete barcode. The UPC is the set of black bars, while the GTIN is the 12-digit number printed below. When anyone scans them at checkout or with specialized software, they instantly provide product details.
This code has three sections, each containing specific information about the product. Here’s a breakdown of those three parts.
- UPC company prefix: A 6-digit number the GS1 (Global Standards Organization) assigns to products. This number will identify the company across all UPC-registered products.
- Item number: The next five digits are unique product identifiers within your company’s UPC system. Every product variation (size, color, etc.) will have a different item number.
- Check digit: This is a single digit at the end of the GTIN. It’s calculated automatically using a formula that ensures accuracy in barcode scanning. So, a wrong check digit won’t allow scanners to read the UPC properly.
Example UPC breakdown
If you register with GS1, get a company prefix of 087654, and assign 00123 as an item number with a check digit of 9, your full UPC would be 087654001239 (printed below the barcode).
UPC vs. other product codes: What’s the difference?
If you’ve been researching UPCs, you’ve probably encountered other product codes like SKU, EAN, and ASIN. After all, UPCs are not the only product codes out there. Different industries can even use different barcode systems. Here’s how UPC compares to the most common types:
1. SKU (Stock Keeping Unit)
A stock-keeping unit (SKU) is a unique code featuring letters and numbers businesses can use to track their products internally. Unlike UPCs, SKUs are not from GS1. Instead, each company can create them for their inventory management.
Imagine you own a direct-to-consumer coffee mug brand and need a well-organized warehouse where employees can easily sort new shipments. You could set up an SKU system using letters to represent different colors and numbers for sizes (like MUG-BLUE-LARGE for a large blue coffee mug), which would make tracking and managing inventory much easier.
2. EAN (European Article Number)
An EAN is Europe’s answer to the UPC, containing 13 digits instead of 12. Since 2005, a global standard required American barcode scanners to read UPC and EAN codes, ensuring compatibility across different markets.
3. ASIN (Amazon Standard Identification Number)
ASIN, or Amazon Standard Identification Number, is a unique code assigned to every product sold on the platform. It helps Amazon organize and track the millions of items available in its marketplace, making it easier for customers to find what they want.
How to get a UPC (without getting scammed)
If you need UPCs, don’t buy them cheaply from random third-party sites. Major retailers (especially Amazon) check whether your UPC is valid through GS1. If it’s not, your listings could be removed or flagged. Here’s how to get a legit UPC:
Step 1: Figure out how many UPCs you need
Remember that every unique product and variation needs its own UPC. For this reason, if you sell 10 products, each with three sizes, you’ll need 30 UPCs.
Step 2: Register with GS1 (the only official source)
After figuring out how many codes you need, head to GS1’s official site. Then, choose a GS1 membership (pricing depends on how many UPCs you need). You can buy GTINs for a small inventory or create a company prefix to create UPCs for multiple products.
Note: Companies must pay annual fees for their unique prefix and use an online tool (which they’ll gain access to after payment) to generate new barcodes.
Bottom line
Getting a UPC depends on your business model. If you’re selling on your website, you can skip it. But you’ll need one if you want to sell on Amazon, Walmart, or in big retail stores. Even if you sell on your website, getting UPCs early is better than scrambling for them later if you plan to scale and expand. As long as you see growth in the business’s future, getting UPCs will help save you many headaches.
