What Is a GTIN (Global Trade Item Number)?

Global trade item numbers (GTINs) are foundational to inventory management and information sharing. This standardized numerical system allows retailers, distributors, manufacturers, and suppliers to track goods flowing across the supply chain.

So, what is a GTIN? Learn more about these crucial numbers, including why they are important, the various types of GTINs, and how to obtain authentic identifiers. 

Defining GTINs

A global trade item number is an internationally recognized identifier for trade products. You most likely know GTINs as the series of digits beneath a product barcode.

GTINs are part of the GS1 family of standardized global data structures. GS1 is an international not-for-profit entity that develops standards for GTINs, barcodes, and other standardized identifiers. 

The U.S. office of GS1 created the first barcode. Now, organizations throughout the world have adopted GS1 GTINs and barcodes. 

A GS1 US GTIN is primarily used for product identification purposes. Each trade item is assigned a unique GTIN, differentiating it from other goods. GTINs also play a role in inventory management and can be used in conjunction with stock-keeping unit (SKU) numbers.

However, there is a distinction. SKUs change from business to business, whereas GTINs don’t change as the product progresses through the supply chain. Each business assigns its own SKUs for inventory turnover tracking and other purposes. Since GTINs are set by GS1, there are no duplicate GTIN numbers in circulation.

The uniqueness of each GTIN makes it valuable for relaying product information between trade partners and managing inventory throughout the supply chain. It prevents any confusion or misidentification.

Why are GTINs important?

Retailers and e-commerce brands rely on GTINs for several purposes:

• Identifying products
• Managing orders
• Verifying they are ordering the correct items
• Relaying product information to consumers

Online platforms like Amazon also use GTINs to make product recommendations and provide personalized shopping experiences.

Regarding logistics, GTINs are essential to inventory tracking and management. Thanks to GTINs, businesses can engage in perpetual inventory tracking, meaning their databases are updated as goods are purchased. 

GTINs also support inventory management strategies, like “first in, first out” (FIFO), which involves selling the oldest goods first. This strategy preserves product quality and prevents spoilage when shipping perishable goods.

Without GTINs, suppliers, distributors, and retailers would have to manually track goods and manage fulfillment strategies. These standardized item numbers promote better supply chain visibility and the implementation of streamlined inventory management strategies.

How to get authentic GTINs

Whether you manage a small business or a larger organization, knowing how to get GTIN numbers is vital. Each unique product you sell requires its own GS1 US GTIN.

How you obtain your GTIN will vary based on the number of products or product variations you plan to launch. If you manage a small business, you may want to license GS1 US GTINs individually. A single GTIN costs $30, but GS1 offers significant discounts on bulk orders. 

If you have more products or product variations, you can license a GS1 Company Prefix. The prefix comprises a few standardized digits that appear at the start of all your barcodes to identify your company as the licensee. With a GS1 Company Prefix, you can license a block of barcodes during one transaction. GS1 US GTIN bundles range from 10 to 100,000. 

Licensing a prefix is the more cost-effective approach for businesses with extensive product selections. If you add new products in the future, you can license individual GTINs or do another bulk purchase.

Types of GTINs

The GTIN system is primarily used for barcodes, but it can also work alongside radio frequency identification (RFID) tags and several other data carriers. Currently, there are four GTIN data structures:

• GTIN-8: These eight-digit European Article Numbers (EANs) are predominantly used outside North America.
• GTIN-12: Also known as universal product codes (UPCs), GTIN-12s are 12-digit numbers primarily used in North America.
• GTIN-13: These 13-digit EANs are mainly used in Europe and Asia.
• GTIN-14: The final digit of these 14-digit numbers identifies the packaging level of a trade item (e.g., a case or an individual item).

Here is a simple GTIN example that breaks down the differences between each type of number. 

If a product has a GTIN of 001234567890, it is a GTIN-12 and is likely issued to a North American brand. However, if the GTIN is 00001234567890, it is a GTIN-14 and used on outer cases, such as consolidated packages of the same product. 

GTINs on Amazon: How they work

Amazon and other online marketplaces encourage the use of GTINs. Amazon uses GTINs to provide a better shopping experience by making it easier for consumers to find the items they are looking for. Accepted Amazon GTINs include GTIN-12 and GTIN-14. 

Currently, Amazon has GTIN requirements for 25 different product categories. Any product that falls within one of these categories must have a GS1 GTIN to ensure its quality and authenticity. 

Using GTINs to support product identification allows Amazon to boost sales and increase consumer loyalty. Even if your product category does not require GTINs, you should consider using them. 

GTIN vs. UPC

A universal product code, or UPC, is the barcode symbol present on virtually all consumer goods. The barcode acts as a data carrier that allows point-of-sale systems to capture GTIN data.

Although GTIN and UPC are often used interchangeably, they are not one and the same. A UPC is a scannable strip that appears as a series of black bars. The GTIN is the data encoded within that barcode — a 12-digit number that is typically printed underneath as well. 

Alternate GTIN sources

Aside from GS1, several third-party companies sell barcodes and encoded product identification numbers. However, these ready-made barcodes may include GTINs with another brand’s identification number or prefix. These numbers could confuse trade partners and diminish the customer experience.

If you list your products on a platform like Amazon, your product GTINs will be verified using GS1 data. If Amazon discovers a discrepancy, it will remove your products from the storefront. 

Orderful: Empowering you to share product data with ease

Licensing GTINs from GS1 will limit confusion between trading partners and help you provide a better customer experience. However, GTINs are only part of the equation.

To optimize transparency and collaboration with your trade partners, you need an efficient channel for sharing information. Orderful’s modern EDI solution enables seamless and accurate communication. With Orderful, you can efficiently relay GTINs, inventory levels, and more.

Contact us today to talk to an EDI expert and learn how Orderful can streamline your operations.