Learn how the UPC works and the main types of UPC barcodes, as well as whether your business needs them and how to get them.
What Is the Universal Product Code (UPC)?
The UPC is a product identification system used for retail products worldwide, but most commonly in North America. An eight-to-12 digit number known as a UPC or a UPC code is assigned to each product to identify it during sales transactions.
How the UPC Works
Nearly every consumer product sold at physical or online retailers worldwide contains a UPC barcode, which by definition consists of a number known as a UPC alongside a graphical, machine-readable version of the UPC known as a barcode. The barcode itself comprises a set of bars or lines with spaces between them. The number is between eight and 12 digits, depending on the type of code. The first six to 10 digits represent the manufacturer’s identification number, the next one to five represent the item number, and the final digit represents the check digit, which ensures the accuracy of the code. The Universal Product Code was the first system of barcode labeling to be widely adopted. The grocery industry first established UPC as the standard barcode symbology for product marking in 1973. Foreign interest in UPC led to the adoption of the EAN code format, a format similar to UPC, in 1977. Today, UPC barcodes play an integral role in a typical sales transaction:
A merchant uses a barcode reader to scan the UPC barcode of a product at checkout.The barcode reader transmits the UPC data to a point-of-sale (POS) system and looks up the number.The POS computer automatically retrieves information about the product, including its actual price at that point in time, enabling the merchant to sell the manufacturer’s product at a reasonable price.
Although UPC barcodes are particularly suited for high-volume scanning environments such as retail stores, it’s not just retailers who use them for identification. They may be used in the health care industry to identify medical devices, for example. The barcodes are also used for logistics, data tracking, and security.
Types of UPC Barcodes
There are two kinds of UPC barcodes:
UPC-A: This is the standard UPC version that is widely used for point-of-sale retail transactions. It’s 12 digits long and encodes a type of data called Global Trade Item Number (GTIN-12). It’s used broadly for retail products, including privately owned products sold exclusively at one merchant’s stores. UPC-E: This shortened version of the UPC is eight digits long. Like UPC-A, it encodes GTIN-12 data, but it’s generally used when there isn’t enough room for the 12-digit code. As such, you’ll most often see it on small retail items, such as cosmetics, gum, and cigarettes.
Do I Need a UPC Barcode?
Businesses that offer physical products for sale using a brand name or label that belongs to them generally need to have a UPC barcode to identify each product. Moreover, each variation of each product should have a unique barcode. That said, you don’t necessarily need a UPC barcode if you’re selling products online through your own e-commerce website, at a small retailer that doesn’t use a POS system (a mom-and-pop shop, for example), or a flea market or pop-up shop. Beyond that, UPC barcodes are handy for scanning and tracking your products as they move through the supply chain.
How to Get a UPC Barcode
Organizations that wish to use a UPC code must apply to GS1, a non-profit organization that maintains global standards for the identification of goods and deals with bar code issuance and maintenance. Having a single organization issue UPC codes ensures that no two products can have the same UPC code. To get a UPC in the U.S., you’ll typically have to:
How Much Does a UPC Barcode Cost?
It depends on the barcode option you select. A GS1 US GTIN costs $30 one time to license. Costs for GS1 Company Prefixes depend on the number of items that need a barcode; there’s an initial fee ranging from $250 to $2,100, plus a yearly fee of $50 to $2,100 to maintain UPC code registration with the GS1.
