What Is a UPC Code and How Does It Work?

Are you wondering about those black-lined barcodes on products and how they function? These lines, known as Universal Product Codes (UPC), have been aiding businesses in tracking their inventory since the early 70s.

This blog post will demystify UPC codes, revealing their components, significance, variations and usage in different industries. Let’s dive into the world of UPC codes and make your transition to retail smooth!

Key Takeaways from this Article

• A UPC code is a set of black lines on a product that helps to identify and track it at stores.
• UPC codes were developed in the early 1970s and have been widely used since then.
• The components of a UPC code include black lines, numbers, a company prefix, and a check digit.
• UPC-E and EAN-13 are variations of UPC codes that offer more flexibility in size and international compatibility.
• SKU (Stock - Keeping Unit) is different from UPC as it is unique to each retailer and used for tracking inventory. GTIN (Global Trade Item Number) is similar to UPC but has some differences in length, usage, and specific codes included.
• Obtaining a valid UPC code involves following GS1's 10 - step process to ensure accurate product identification.
• Amazon sellers need UPC codes as they serve as unique identifiers for products listed on the platform.

Understanding UPC Codes / Definition of a UPC

Definition of a UPC Code

A Universal Product Code (UPC) is a special barcode used on products to make them easy to identify and sell in stores. It's like a unique ID for each item you see in a shop. When you go to buy something at the store, the cashier scans the UPC barcode to quickly find the item's information, like its price, in their computer. This helps the store keep track of what they sell and makes the checkout process faster. UPCs are essential for both retailers and shoppers because they ensure that products are correctly priced and help with inventory management.

The History of UPC Codes

UPC codes are not new. They came into use in the early 1970s. Wallace Flint, Bernard Silver, and Norman Joseph Woodland put their minds together to form this system at the Drexel Institute of Technology.

It all started when they got an idea from dots and dash Morse code. Later, IBM gave a fresh look to their idea by adding black lines on products for easy check outs. The buzz began with a pack of Wrigley's Juicy Fruit gum sold in Marsh's Supermarket in Troy, Ohio in June 1974. Originally, UPC codes were thought up as a way to automate the grocery store checkout process.

That same pack is now kept at Smithsonian Institution's American history museum as a mark of change in shopping style across the globe!

Economic studies conducted for the grocery industry committee projected over $40 million in savings to the industry from scanning by the mid-1970s.

Components of a UPC Code

The components of a UPC code include its composition and formatting, encoding and numbering, as well as the calculation of the check digit.

Composition and Formatting

A UPC code has black lines and numbers. It also holds a company prefix and a special product number. This mix lets us tell one product from another fast. A check digit is there too in the format.

The check digit helps ensure no mistakes happen when the code gets read or scanned. Quick information finding and tracking of items become easy with this setup of a UPC code.

Encoding and Numbering

Here we talk about encoding and numbering in UPC codes. There are two main parts of a UPC code. First, there are twelve digits. They are unique to each item. The first six digits are the maker's mark. The next five digits show the product number that the maker gives. The last digit is a check digit. It helps find errors.

Check Digit Calculation

To ensure accuracy and detect errors, a check digit is calculated for every UPC code. This check digit is determined by following a specific equation. Here's how it works:

1. Sum the digits at odd - numbered positions (1st, 3rd, 5th, etc.) in the barcode.
2. Multiply this sum by 3.
3. Sum the digits at even - numbered positions (2nd, 4th, 6th, etc.) in the barcode.
4. Add this sum to the result obtained in step 2.
5. Find the remainder when dividing the total obtained in step 4 by 10.
6. If the remainder is not zero, subtract it from 10 to get the check digit.

Variations of UPC Codes

UPC-E and EAN-13 are two variations of UPC codes that offer more flexibility in terms of size and international compatibility.

UPC-E

UPC-E is a type of barcode that is a variation of the standard UPC code. It uses a 6-digit code instead of the usual 12 digits, making it more compact and suitable for products with limited label space.

UPC-E corresponds to certain number systems in UPC-A and can represent the same products, but in a smaller format. This type of barcode eliminates any leading or trailing zeros, allowing for efficient use of space on packaging.

It's especially useful for small packaging or products where larger barcodes are not feasible.

EAN-13

EAN-13 is a variation of UPC codes that includes an extra digit at the beginning of every UPC-A number. This additional digit indicates the country in which the company selling the product is based.

EAN-13 codes are often used internationally and are associated with variations of UPC codes.

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The Importance of UPC Codes

UPC codes are crucial for retailers and manufacturers as they enable efficient inventory tracking, recall accuracy, and batch lot number management.

SKU vs UPC

SKU (Stock-Keeping Unit) and UPC (Universal Product Code) are both important identifiers in retail, but they serve different purposes and are used in different contexts. Understanding the difference between the two can help retailers manage inventory more effectively.

SKUUPCA SKU is unique to each retailer.A UPC is a globally accepted product identification code.SKUs are used by retailers to track inventory and sales data.UPC codes are scanned at the point of sale for price lookup and product identification.SKU numbers help retailers keep track of unique items, even if they share the same UPC code with other products.UPC codes consist of strips of bars and spaces that encode a 12-digit number.A SKU number is a tracking metric for retailers.A valid UPC code is necessary for tracking and selling inventory through the supply chain.

GTIN vs UPC

GTIN and UPC both serve as unique identifiers in the retail world, but there are key differences between the two.

GTINUPCDefinitionGlobal Trade Item Number, an identifier for trade items developed by GS1.Universal Product Code, a unique numeric identifier assigned to each product.LengthCan be 8, 12, 13 or 14 digits long, depending on the type of product and where it's being sold.Typically 12 digits long.UsageUsed worldwide and accepted by most retailers.Most commonly used in North America.SpecificsGTIN includes UPC, EAN, ITF-14, and GS1-128 codes.UPC codes are part of the GTIN system, specifically GTIN-12.

While both GTIN and UPC codes greatly streamline inventory management, they each have their specific usage and requirements. They help in tracking products during shipping, locating them in warehouses, and differentiating products from others. Especially in the Amazon marketplace, UPC codes act as the required unique product identifier, making them indispensable for sellers.

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The Process of Getting a UPC Code

Obtaining a UPC code involves following GS1's 10-step process to ensure accurate and unique product identification.

How to Obtain a UPC Code

To obtain a UPC code for your product, follow these steps:

1. Visit the website of GS1 US, the organization that provides authentic UPC barcodes.
2. Register with GS1 US and become a member.
3. Choose the number of UPC codes you need based on the number of products you plan to sell.
4. Pay the necessary fees to purchase the UPC codes from GS1 US.
5. Once payment is complete, you will receive your unique UPC codes.
6. Assign each UPC code to a specific product in your inventory.
7. Generate barcode labels using the assigned UPC codes for each product.
8. Attach the barcode labels to your products before selling them.

Understanding GS1’s 10 steps

GS1’s 10 steps outline the process of getting a UPC code for your product. Here's how it works:

1. Research your market: Understand the demand for your product and determine if you need a standard or complete barcode.
2. Join GS1: Become a member of GS1, the organization that assigns and manages UPC codes.
3. Determine the number of barcodes you need: Decide how many unique items, variations, or packages you'll be selling.
4. Assign identification numbers: GS1 will provide you with a unique company prefix and help you assign identification numbers to your products.
5. Barcode design: Design your barcode labels according to GS1's specifications, including size, placement, and printing requirements.
6. Print barcodes: Use barcode printers or thermal transfer printing technology to create scannable barcode labels.
7. Test barcodes: Ensure that your barcodes are scannable and readable by different scanning devices in various environments.
8. Implement internal processes: Incorporate barcoding into your inventory management system and update product information accordingly.
9. Share data with trading partners: Exchange accurate product data with retailers and distributors using the Global Trade Item Number (GTIN).
10. Keep up-to-date: Continuously manage and update your UPC codes as new products are introduced or old ones are phased out.

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Utilizing UPC Codes in the Retail Industry

UPC codes play a crucial role in the retail industry, especially for online marketplaces like Amazon. Sellers on these platforms need UPC codes to list and sell their products. These codes enable efficient inventory management, accurate tracking of sales data, and easy processing of returns.

Therefore, understanding how to generate and use UPC codes is vital for retailers looking to expand their business and reach a wider consumer base.

UPC Codes for Amazon Sellers

UPC codes are essential for Amazon sellers because they provide a unique identifier for each product listed on the marketplace. These codes help streamline inventory management and tracking, making it easier for sellers to keep track of their products.

Amazon requires a unique product identifier, and UPC codes serve that purpose. Additionally, Amazon checks each product's UPC against the GS1 database to ensure authenticity. So if you're selling on Amazon, having a UPC code is crucial to successfully listing and selling your products.

Why You Need UPC Codes for Amazon

Having UPC codes for your products is crucial if you want to sell on Amazon. These codes are necessary for product identification, tracking inventory, and ensuring accurate sales data.

Retailers and manufacturers need UPC codes to properly manage their inventory on Amazon. Without a valid UPC code, it can be challenging to forecast sales and keep track of available stock.

Additionally, having UPC codes allows for efficient recall accuracy in case of damaged or contaminated items. Therefore, if you want to sell your products on Amazon and ensure smooth operations, obtaining UPC codes is essential.

How to Generate an Amazon UPC Code for Your Product

To generate an Amazon UPC code for your product, follow these steps:

1. Purchase a GS1 Company Prefix: Buying a Company Prefix from GS1 ensures that your UPC codes are legitimate and recognized by retailers and marketplaces like Amazon.
2. Obtain a unique product number: Assign a unique number to each of your products. This number can be any combination of digits, but it must be unique within your brand.
3. Calculate the check digit: Use the Luhn algorithm to calculate the check digit. This digit is added to the end of your UPC code and helps detect errors during scanning.
4. Create your UPC code: Combine the Company Prefix, product number, and check digit to create a complete UPC code.
5. Register your product on Amazon: Once you have generated your UPC code, register it on Amazon's Seller Central platform for accurate tracking and inventory management.

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Conclusion

In conclusion, UPC codes are essential tools for product identification and tracking in the retail industry. They have been used since the 1970s and are crucial for both small and large businesses.

With a UPC code, businesses can expand globally and bring their products to consumers more efficiently. By scanning the barcode at the point of sale, retailers can accurately track inventory, ensure price accuracy, and improve overall efficiency in their operations.

So next time you're shopping or selling online, remember that those black lines on the product are doing a lot of important work behind the scenes!

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FAQs

1. What is a UPC Code?

A UPC Code, or Universal Product Code, is a barcode used by small and large businesses to track products from the business to the consumer.

2. How does a UPC code work?

A UPC code works by using black bars and white spaces that hold numerical digits. A scanner reads these bars and spaces in stores like Walmart or any ecommerce platform selling food, coffee, home goods, apparel etc., then brings info about the product's color, size variations and more.

3. How do I get a UPC Code for my product?

To get a UPC Code for your product you need to apply for one through the GS1 organisation which manages Global Trade Item Numbers (GTINs). This involves licensing a barcode that matches batch lot numbers or SKU (Stock Keeping Unit) codes with your items.

4. What are different types of barcodes?

There are many types of barcodes but Standard & Complete Barcodes as well as Single GTIN/UPC Barcodes are common ones used on bulk packages.The choice depends on your needs!

5. Is the barcode scannable strip important in reducing errors?

Yes! The scannable strip made up of guard patterns at both ends reduces data entry errors due to its error detection properties which play crucial role while scanning processes happen around quiet zones of the labelled item stored.

6. Are there special types of UP Codes for items like drugs and coupons?

Yes! There are National Drug Codes designed especially for pharmaceuticals and Coupon codes meant exclusively for store coupons or loyalty cards that offer price reductions.