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We encounter UPC barcodes every day when using self-checkout systems at supermarkets and other retail outlets. frantic00/ShutterstockTake a look inside your refrigerator or pantry, and you'll notice that nearly every item is marked with a distinctive UPC code, or Universal Product Code. In fact, every product sold by large retailers, from grocery stores to department stores and e-commerce sites, carries a Universal Product Code.
But how did these UPC codes come about, and what do the digits on them signify? In this article, we'll dive into the details of how the UPC code works.
What Is a UPC Code and a Barcode?
It's helpful to begin by explaining the UPC barcode. A barcode consists of varying widths of bars and spaces found on product packaging. Optical barcode scanners at stores read these codes. The most widely used barcode is the UPC code (also known as UPC-A).
UPC barcodes were first developed in the early 1970s to help identify products, streamline the checkout process in grocery stores, and manage inventory. The UPC system spread quickly to other retail sectors due to its effectiveness. The very first UPC code appeared on a pack of Wrigley's gum in Troy, Ohio, in June 1974.
UPC codes are primarily used by retailers in the United States, whereas the European Article Number (EAN) code is used internationally. However, nowadays, most places accept both UPC and EAN codes.
What Is a Global Trade Item Number?
A UPC code is a barcode symbol containing a 12-digit number known as the GTIN-12. GTIN stands for Global Trade Item Number or Global Trade Identification Number. This UPC data is derived from the Uniform Code Council (UCC), a nonprofit organization representing the market for supply chain codes.
The GTIN-12 number is UPC data generated from a UPC Company Prefix and Item Reference Numbers (which will be discussed later). The most common version used in retail stores is UPC-A, designed for products sold at point-of-sale locations. Today, each retail product has its unique UPC code, which is essential for inventory management and simplifying sales transactions.
How Barcodes Operate
Barcodes utilize patterns made up of squares, hexagons, dots, and other shapes to encode information. pikepicture/ShutterstockBarcodes may seem complicated, but they become much clearer once you break the process down into just a few simple steps.
- Data: A barcode contains a wealth of information about a particular product, such as its weight, price, manufacture date, product ID, and more. This data is generated by a barcode website (details on that below).
- UPC barcode symbols: This step involves encoding the collected data into a barcode. The parallel lines in the barcode represent a system of letters and numbers.
- Data collection: The information embedded in the barcode can be scanned in several ways, such as using a barcode scanner at a retail store or a phone camera. The scanner picks up the code, extracts all the information, and converts it into readable text.
What Is a UPC Company Prefix?
A crucial component of the UPC code data is the UPC company prefix. Its main function is to assign a distinct prefix to each company for easy identification.
A UPC company prefix is a unique number consisting of six to nine digits, assigned by GS1 US to a company. Companies with large product lines and significant UPC requirements are given prefixes with fewer digits, allowing for more product identifications to be made.
Purchasing UPC Codes
A UPC code is made up of the company prefix, item reference number, and a check digit. Retailers and online businesses purchase UPC codes for their products from GS1 US.UPC codes aren't available for free. As mentioned earlier, GS1 US is the primary authority for assigning these codes, so it's recommended to register with the nonprofit directly. While third-party resellers offer bulk UPC codes, it's advisable to go through GS1 US for authentication. Here's how you can do that.
- Identify how many UPC codes you require. You must purchase a separate UPC code for each individual product. For example, if you're selling a T-shirt in three sizes (small, medium, large) and three colors (red, white, blue), you'll need nine UPC codes in total.
- Purchase UPC codes. As mentioned earlier, register with GS1 US to ensure your codes are authentic and the process is legitimate.
- Make payment. The cost for UPC codes depends on the provider and the number of codes required. For instance, a small business may only need a single UPC, while larger sellers on platforms like Amazon Marketplace may need multiple codes. Some UPC providers charge an initial fee along with an annual renewal fee.
- Obtain your UPC codes. Verify the accuracy of your UPC code before downloading it. Once confirmed, you can download it for use.
UPC Codes for Amazon Sellers
Amazon employs bar codes to track and identify inventory throughout the fulfillment process. As a result, all sellers on the Amazon marketplace are required to have a product code for each item they list for sale online.
However, Amazon utilizes three specific types of bar codes for this task:
- The manufacturer's code or unique manufacturer identification number, which includes Universal Product Codes (UPC)
- Amazon-specific bar codes
- Transparency authenticity codes (exclusively for brand owners)
Amazon relies on UPC codes to manage its inventory. If multiple sellers offer the same product with the same UPC code, Amazon prioritizes orders from the seller nearest to the customer, ensuring quicker delivery times.
If products lack UPC codes, they must utilize Amazon-specific UPC codes. Sellers can generate Amazon bar codes directly from their seller accounts and place them on their product packaging.
UPC: The Barcode That's Here to Stay
UPC barcodes have transformed retail and inventory management by offering a fast, consistent, and standardized way to track products globally. By embedding essential product details in a compact, machine-readable form, UPC codes simplify the checkout process, improve inventory management, and make the distribution of goods more efficient.
As technology progresses, the core purpose of UPC codes—enhancing accuracy and efficiency in product identification—remains the foundation of new systems, ensuring that UPC codes continue to be an essential part of modern commerce for the foreseeable future.
