Everything You Need To Know!
UPC stands for Universal Product Code. It is a 12-digit identifier for any North American trade item which can be purchased and sold. Each variation of a trade item, including additional sizes and colors, requires a unique UPC. A UPC barcode is the machine readable 1D symbol representing the UPC. The UPC-A version is a symbol represented by bar and space patterns of the encoded 12-digits of data.
What is GTIN (Global Trade Item Number)?
To accommodate global commerce, GS1 global standards agency established the term GTIN to represent a 14-digit global identifier. Retailers have stated barcode requirements for their point-of-sale items and these commonly refer to UPCs as GTIN (Global Trade Item Numbers) since they adhere to the GS1 global standards.
The UPC (UPC-12) is essentially a GTIN-12. To accommodate databases, a padded “00” is used so the 12-digt UPC to make a 14 digit GTIN.
To learn more, visit www.gtin.info .
How To Get UPC Barcodes
Where you intend on selling your products will dictate how your should go about obtaining barcodes for your products. GTINs can be obtained through the global standards office, purchased from a 3rd party UPC reseller, or assigned internally. Use the following information to select the best source based on what the UPC will be used for and which trading partners who might be requiring them.
| UPC used for: | GS1 Global Standards | 3rd UPC Resellers | Internally Assigned |
|---|---|---|---|
| Products being sold by national retailer such as; Amazon, Walmart, Kroger, The Home Depot, CVS, Target and JC Penney. | âś” | âś– | âś– |
| UPCs (GTINs) to be used by Amazon Vendor Central or Amazon Seller Central. | âś” | ✖ | ✖ |
| GS1 licensed GTINs can have ownership authenticated by trading partners on Verified by GS1 and on GTIN.cloud. | ✔ | ✖ | ✖ |
| Items being sold by local stores and certain regional retailers. | ✔ | ✔ | ✖ |
| Products being sold to a distributor under their label. | ✔ | ✔ | ✖ |
| iTunes, and Spotify or music titles. | ✔ | ✔ | ✖ |
| Items being sold on your own website, or used internally to support accounting or internal POS system (QBO, Square,). | ✔ | ✔ | ✔ |
| Apply Now | Learn More |
Retailer Barcode Requirements
Over the past 50 years, point-of-sale UPC barcodes have become a necessity for retailers and online marketplaces. Each unique UPC barcode identifier enables retailers to track sales, manage inventory, and place re-orders from their suppliers. As consumers’ appetite for product data has grown, the need for trusted identifiers and data has magnified.
GS1 Global Standards
The safest and recommended way get barcodes is through GS1 barcode service, which includes GTINs licensed to your company (brand). GS1 is the global standards organization that governs Global Barcode Specifications and administers licensing of unique identifiers. The local GS1 office offers individual GTIN assignments and Company Prefixes for blocks of GTIN identifiers, depending on how many are needed.
Benefits of using GS1 GTINs
- GS1 licensed GTINs are acceptable at any retailer around the globe.
- UPC barcodes licensed by GS1 are registered to your company (brand)
- Retailers and marketplaces (Amazon) use tools, such as GTIN.cloud and Verified by GS1 to authenticate GTIN ownership.
- GS1 offers paid certifications and classes enabling companies to understand GTIN barcode requirements.
Disadvantages of GS1 GTINs
- The fee for obtaining GS1 GTINs and Prefixes is based on the total number of unique items requiring barcodes and can be expensive.
- Companies with Company Prefixes for 10 or more GTINs are required to pay an annual renewal fee for continued Prefix Licensing.
- Complex registration and GTIN management processes.
- GS1 licensing fees do not include GTIN support, so additional GS1 Barcode Support subscriptions are required, if companies do not invest in certification classes.
Since GS1 does not provide the actual certified print-ready digital barcodes nor support, members either need to subscribe to GS1 Barcode Support programs (barcodes provided) or use UCC/GS1 certified software to generate .eps barcodes (createbarcodes.com).
3rd Party UPC Resellers
UPC Resellers are privately owned for profit companies that sell UPC Numbers which were originally assigned by the Uniform Code Council (UCC) before 2001. These companies are not regulated so prospective buyers need to assess the legitimacy of the offering and if they safeguards to protect their assignments.
Most national retailers, including Amazon, Wal Mart, Kroger, Target, The Home Depot and several others explicitly prohibit the use of UPCs obtained from UPC resellers.
How 3rd Party UPC Resellers Originated
Prior to 2001, UPCs were administered by the Uniform Code Council (UCC). The UCC then merged into a local office of GS1 Global. Leveraging their position, the GS1 US instituted an annual fee to maintain Company Prefixes.
Original UCC members responded by filing a Class Action lawsuit against the GS1. The case was brought to the US Supreme Court, and a hefty settlement reached and an acknowledgement that UPCs assigned prior to 8/28/2002 were not subject to GS1 annual fees. Since there was no documentation in the original UPC Certificates limiting the transferability of UPCs, a gray market of 3rd party UPC reseller industry was born.
It is important to note that many of the online offerings provide inaccurate and misinformation. Buyers should understand the risks prior to purchasing.
Benefits of using 3rd Party UPC Resellers
- No annual renewal fees
- Very low prices
- No registration o product upload of data required
Disadvantages of 3rd Party UPC Resellers
- Amazon, Walmart, Kroger, The Home Depot and several other retailers require UPCs directly from the GS1
- UPCs purchased from a reseller share a common UPC Prefix and can be hijacked or used by another company.
- Many resellers are not reputable businesses who are aggressively trying to exploit companies needing UPC barcodes.
- Due to the lack of legal jurisdiction – there’s no way to prevent UPC Numbers sold by a UPC Reseller, from being used by another company.
Last note, Amazon requires UPCs obtained directly from the GS1 and explicitly states UPCs from a Third party reseller are not acceptable and may cause your entire Amazon Account to be suspended.
Internally Assigned UPC Numbers
UPC-12 numbers that begin with a 4 as the first digit are designated as Internally assigned UPCs, and can ONLY be used within the organization that organizations own supply chain.
Some retailers such as Costco assign UPCs which begin with a 4 for their own private brand items such as Kirkwood which is exclusively sold by Costco.
Benefit of using Internal UPC Numbers
- Aside from maintaining an internal database, there are zero costs
Disadvantage of using Internal UPC Numbers
- They are only valid for use within your own supply chain, and cannot be used by other stores, or distributors. Do not use internally assigned UPCs outside of your organization
The Evolution of the UPC Barcode
The UPC has now been around for over 50 years. What started as initiative for the grocery industry has blossomed to global standards spanning numerous industries.
Timeline of the UPC Barcode
1974
The Uniform Code Council (UCC) was officially established. This organization was created to oversee the development and management of the Universal Product Code (UPC) data structures and barcodes.
1976
The European Article Numbering Organization (EAN) started issuing 13 digit EAN barcodes numbers to 12 founding member countries outside of the USA. The EAN HQ was located in Brussels, Belgium.
2001
The UCC and the EAN organizations began discussions on merging the similar but different organizations into a single entity. The concept of a single global identifier called a GTIN was coined ,and the Sunrise 2005 GTIN Initiative was established.
2005
The Uniform Code Council (UCC) and European Article Numbering Association (EAN) officially merged to form GS1. This unification aimed to create a single global organization dedicated to developing and maintaining standards for supply and demand chains across multiple sectors.
2018
The GS1 Digital Link standard was officially ratified and created a new standard enabling 2D barcodes to connect to web connections identifiers similar to URLs, enhancing the shopping experience for consumers and modernizing mobile-phone scanning.
Today
The adoption of GS1 Digital Link is part of a broader transition towards 2D barcodes, with a “2027 sunrise date“, by which time retailers are expected to accept 2D barcodes at point-of-sale. This transition aims to encode additional data attributes and empower advanced use cases in retail and other industries.
To learn more about the 2D Digital Link and implementation, please click here
