UPC Meaning: What It Is, Types, and How to Get
Running a business today means staying organized, especially when selling products globally or across online marketplaces. Mismanaging items leads to errors, confusion, and lost sales. That’s where understanding UPC meaning becomes essential.
A UPC—short for Universal Product Code—is a unique number and a type of bar code used for product identification. The barcode symbol, which is the visual graphic printed on packaging, encodes the UPC and helps businesses identify products quickly and accurately. UPC barcodes support smooth inventory management, reduce mistakes at point of sale systems, and make product tracking efficient.
They also allow retailers to track every individual product sold properly. This guide explains UPC codes, how they work, and how to get your unique UPC.
Introduction to Universal Product Code
A Universal Product Code (UPC) is a unique 12-digit numeric code assigned to retail products, designed to streamline product identification and management across the retail industry. The UPC code is most commonly seen in grocery stores and general retail outlets, where it plays a crucial role in inventory management, product tracking, and sales processing. The UPC barcode, often referred to as the UPC-A barcode, is the machine-readable representation of this code, consisting of a series of black lines and white spaces that can be quickly scanned at checkout. By using UPC codes and UPC barcodes, businesses can efficiently bring retail products to market, ensuring that each item is easily tracked and managed from the warehouse to the point of sale. The adoption of the universal product code UPC system has become essential for retailers and manufacturers looking to maintain accurate inventory, reduce errors, and improve the overall efficiency of their operations.
What is a UPC?
Understanding the UPC meaning starts with the basics. A UPC (Universal Product Code) is a unique identifier printed on product packaging as part of a barcode, with the code printed on packaging to enable easy scanning at checkout. Businesses across the retail industry, from small shops to major retailers, use it to manage stock, price items, and track sales.
A standard UPC code includes 12 digits. It allows barcode readers at point of sale systems to pull up product information instantly. This makes inventory management smoother and prevents manual entry errors.
Each code ends with a check digit, which helps validate the number during scans. Knowing what each digit means is key to using UPC barcodes correctly.
UPC Code Structure
A complete barcode on a product isn’t just random numbers. It follows a structure that ensures products get tracked and identified accurately in the supply chain and across online marketplaces. Here’s how a typical UPC-A barcode breaks down:
- Company Prefix: These digits represent the business that owns the product. Assigned by GS1 US, a company prefix links every item back to its brand or manufacturer’s UPC code.
- Product Code: This part identifies the exact item. It varies for each product, and different UPC codes are assigned to different variations such as size or color, even if it’s a different color or size variation of the same item.
- Check Digit (Last Digit): The last digit is called the check digit. It is calculated from the rest of the digits and serves as a checksum to verify the accuracy of the barcode. If the check digit doesn’t match, it helps prevent errors during scanning.
The identifying number encoded within the barcode is what allows for accurate product identification.
Each part plays a role in product identification, allowing retailers to properly track items, avoid duplication, and keep data clean across all the various UPCs used by retailers and large businesses.
Components of a UPC Code
A UPC code is made up of several key components that work together to create a unique identifier assigned to each product. The first part is the company prefix, a unique identifier assigned by the global standards organization GS1 to each manufacturer or brand owner. This is followed by the item number, which is a unique identifier assigned by the manufacturer to a specific product. The final digit is the check digit, which is calculated based on the previous 11 digits to ensure the UPC code is valid and has been entered or scanned correctly. Each component of the UPC code is essential for accurate product identification and helps prevent errors in inventory management and product tracking. By using a UPC code structure that is calculated based on global standards, businesses can ensure that every product has a unique identifier, making it easier to manage products across the supply chain.
Company Prefix and GS1 Company Prefix
The company prefix is a fundamental part of every UPC code, serving as the unique identifier for the manufacturer or brand owner. Assigned by GS1, the global standards organization, the GS1 company prefix typically ranges from 6 to 9 digits in length. This unique identifier assigned to each company ensures that all UPC codes created under that prefix are globally unique and traceable back to the original manufacturer. The company prefix, combined with the item number and check digit, forms a complete UPC code that can be used for product identification, inventory management, and sales tracking. By obtaining a GS1 company prefix, businesses can generate their own UPC codes, ensuring that each product they produce is uniquely identified in the marketplace and across the global supply chain.
Types of UPC Codes
Not every product uses the same kind of UPC. Businesses choose between types based on packaging size, product line, and where the item sells. Picking the right version ensures products get scanned correctly by retailers and online platforms.
Two main formats exist under the UPC barcodes category: UPC-A and UPC-E. Each serves a specific use within the retail industry and broader supply chain.
UPC-A Barcode
UPC-A barcodes carry 12 digits and follow a fixed structure. Each includes a company prefix, product code, and check digit. The manufacturer’s UPC code is included in the barcode, serving as a standardized global identifier for products. This format works best for standard-size packaging and makes up the bulk of barcodes found in retailers’ systems.
Most items sold by major retailers in North America rely on this format for product identification and scan accuracy. The barcode itself acts as the scannable element used at checkout, enabling barcode readers to quickly identify products. UPC-A remains compatible with most barcode readers, cash registers, and POS software, supporting smooth transactions and efficient stock-keeping unit tracking.
UPC-E Barcode
Some products come in small containers where space is limited. That’s when UPC-E works better. It compresses the standard 12-digit format into six digits while preserving the critical data carriers. As a machine readable barcode ideal for small packaging, it allows grocery stores and cosmetic brands to label smaller products without losing scanning accuracy.
UPC-E helps brands save label space while keeping products ready for any retailer that needs fast, accurate scans at checkout.
Types of Barcodes
In the retail industry, several types of barcodes are used to identify and track products efficiently. The most common is the UPC-A barcode, which is widely accepted by retailers and used on the majority of retail products in North America. The UPC-A barcode encodes 12 digits and is ideal for standard-sized packaging. For smaller items, such as cosmetics or jewelry, the UPC-E barcode offers a compressed version of the UPC-A, using fewer digits while still carrying essential product information. Internationally, the European Article Number (EAN) barcode is prevalent, featuring an additional digit to accommodate global product identification needs. EAN barcodes are similar to UPC barcodes but are designed for use in markets outside North America. Each of these barcode types—UPC-A, UPC-E, and EAN—plays a vital role in ensuring products are easily scanned, tracked, and managed throughout the retail industry, supporting efficient inventory management and product movement.
How to Get a UPC Code?
Before selling a product, every business must secure a valid UPC. Most companies go through three basic steps: register, buy, and assign:
First, you register your company with GS1 US, the official source for UPC barcodes in the United States. GS1 maintains the global standard for product identification, ensuring consistency across international markets. Registering with GS1 links your products to a unique GTIN (Global Trade Item Number), which is encoded within the barcode and used worldwide for retail and inventory management.
After registration, you purchase the UPCs and assign them to your products. GS1 and authorized resellers often provide personal support through certified consultants to help businesses with GTIN assignments, barcode creation, and compliance with global standards.
Registering with GS1
Start with GS1 US, the organization that issues UPC company prefix numbers. It maintains the global system behind every valid universal product code. Registering creates your company’s unique prefix that forms the foundation of all your future UPC numbers.
GS1 guarantees the code’s authenticity and links it to your brand across systems that support global trade item number identification.
Purchasing a UPC Code
After registering, businesses can buy codes either directly from GS1 US or through authorized resellers. Always check for legitimacy. Using an invalid code can cause scanning failures or listing rejections on online marketplaces.
Buying directly offers full ownership, which helps when integrating into databases that use EAN codes, Amazon Standard Identification Number, or other barcode languages.
Assigning UPCs to Products
Every product, even with a color and size variation, must receive a different UPC. Never reuse the same code for two items, even if they’re similar. Assigning correctly ensures accurate sales data, helps avoid inventory confusion, and keeps listings clean across platforms.
Tie each product code to one item only. Doing this creates clean records and avoids mismatches in reporting or shipping.
Benefits of Using UPC Codes
Using UPCs helps businesses gain control over operations, lower human error, and work better with both retailers and suppliers. To optimize inventory management and sales data analysis, it is important to track all the barcodes associated with each product, especially when retailers assign unique SKUs for different variations like size and color. Internal tracking metrics, such as SKUs, are used alongside UPCs to provide more granular inventory management and accurate product differentiation within a company’s own systems. Companies also access real-time UPC data to support smarter decisions across the entire supply chain.
Inventory Management and Product Tracking
UPC barcodes let teams scan items, monitor stock in real time, and reduce mistakes. With clean data entry and tracking, companies streamline operations and improve efficiency across warehouses, stores, and the supply chain using accurate product identification systems.
Retail and Ecommerce Integration
UPCs make it easy to list products on Amazon, Walmart, and other online marketplaces. Having a UPC code is also essential for selling products on your own website and in retail stores, as it facilitates product identification, tracking, and improves search rankings on Google. Most platforms and retailers require a valid global trade item number linked to a brand’s company prefix for proper listing, scanning, and inventory sync across systems.
Sales Data and Business Insights
Analyzing UPC data helps businesses spot fast-moving products, slow sellers, and seasonal trends. Reliable scan data improves forecasting, pricing, and demand planning. Clean records help both large and small teams make better inventory decisions using real, store-level insights.
UPC Codes vs. Other Barcodes
Businesses use different types of codes for different needs. Understanding these differences helps brands choose the right system for tracking, scanning, and product matching across stores and platforms. Bar codes, such as UPCs and EANs, are essential data carriers for product identification and supply chain management.
UPC vs. EAN Barcodes
EAN barcodes support international retail, while UPC codes serve the North American market. Both follow global standards for barcodes, but EAN adds a country prefix and works in more countries. GS1 US supports UPC, while GS1 Global supports EAN.
Product Codes and Identification
Product codes are essential tools for tracking and managing inventory in the retail industry. While internal codes like the Stock Keeping Unit (SKU) help retailers monitor sales data and inventory levels within their own systems, the UPC code stands out as a globally recognized product identifier. Each unique UPC code is assigned to a specific product, allowing retailers and manufacturers to track products accurately throughout the supply chain. The use of UPC codes and barcodes enables accurate product identification, which is critical for inventory management, sales processing, and product tracking. By assigning a unique UPC to every product, businesses can ensure that items are properly tracked from production to sale, reducing errors and improving efficiency. This system not only supports accurate product identification but also helps retailers and manufacturers analyze sales data, manage stock levels, and track products as they move through the supply chain, making UPC codes an indispensable part of modern retail operations.
UPC vs. SKU Numbers
A unique SKU number identifies inventory within a single company’s system. In contrast, a UPC code connects globally using a registered UPC company prefix, which ensures consistent identification across platforms, retailers, and distributors in the retail industry and beyond.
Conclusion
Understanding UPC meaning gives businesses a competitive edge. Using a UPC helps track products, analyze sales data, and improve daily operations. Accurate barcodes reduce errors and keep stock levels in check across stores and platforms.
Assigning its own unique UPC code to each product helps maintain clean records and supports better visibility in the retail industry. Whether you work with retailers, distributors, or manufacturers, having proper UPC barcodes makes selling and managing products faster, smarter, and more reliably.
Frequently Asked Questions About UPC Codes
Can a Product Have More Than One UPC?
Each version—like size or color—needs its own unique UPC code. Using the same UPC codes for multiple variations confuses systems and leads to incorrect listings in platforms where a retailer sells many product types.
Do UPC Codes Expire?
UPC codes do not expire, but keep them linked to the same product forever. Reassigning creates tracking issues across systems used by retailers, distributors, and companies managing long-term product data.
Can I Reuse a UPC Code?
Never reuse a UPC code for a different item. Even if a product retires, keep the code linked to it. Reuse confuses records where the retailer creates listings tied to past entries.