What Is a Universal Product Code? Understanding the Basics

On average, a supermarket cashier scans a jaw-dropping 10,000 barcodes each shift. With each flick of their wrist, these cashiers use technology to analyze a product, confirm its price, and add the cost to the shopper's running total — a process that used to be done by hand.

In this guide, we'll explore what a universal product code is and examine why these commonly overlooked graphics are actually retail powerhouses, helping everyone from inventory specialists to e-commerce entrepreneurs build smarter businesses and better serve customers.

What is a UPC (universal product code)?

UPC stands for “universal product code,” a scannable strip used to identify a specific product. UPCs appear on product packaging as a series of black bars with a 12-digit number printed underneath. They are the barcodes you scan during self-checkout at the grocery store or when using a price comparison app on your phone.

Companies like Amazon also use UPCs to organize inventory and create clear connections between their online sales and their physical stock. A well-organized inventory system prevents runaway backorders.

UPCs aren't specific to each individual unit manufactured but rather to a group of products sharing the same features. Product information attached to a UPC might include the following:

• Brand name
• Item name
• Size
• Color
• Finishes
• Embellishments
• Ingredients

Notice the specificity here. Say you have two products of the same type, identical except for their size — a 12-ounce box of farfalle pasta versus a 16-ounce box of the same pasta, for example. They would have different UPCs because one of the product's key identifiers is different.

Think of UPCs as a type of product shorthand. Rather than expecting a point-of-sale cashier or warehouse employee to type in an item’s complete description to figure out how much it costs or where it should go, UPC lets them do a quick scan and pull up the equivalent of an entire product dossier in seconds.

What are the main elements of a UPC?

We've briefly touched on the components that make up a UPC number, but it's worthwhile to dig deeper into how UPCs are developed and what each part of the code represents.

UPCs are always paired with a 12-digit number when printed on product packaging. This number, also called the Global Trade Item Number or GTIN/GTIN-12, consists of three parts:

1. The manufacturer identification number

The first six-digit section of every UPC corresponds to the manufacturer identification number bestowed by the GS1 or other code-creating organization (more on that in a moment). Because these manufacturer ID numbers are unique to each brand and must appear on every UPC attached to a brand's products, consumers can look at UPCs from several items in a store and instantly know if they're produced by the same company.

2. The item's product number

Numbers 7–11 reflect each item's product number. This number is attached to each variation or subtype of a single product, meaning brands must apply for a new UPC every time they add a new color to their line of crossbody bags or launch a non-dairy version of their bottled coffee drink.

3. The check digit

The last number in every GTIN is the check digit — used to prove the code's validity and ensure it was read correctly. This number isn't chosen randomly but is instead created based on a calculation involving the first 11 digits of a 12-digit UPC code.

UPCs vs. EAN codes: What's used outside the United States?

If you sell a lot of products outside the United States, you may be interested in acquiring a European Article Number (EAN) for your products instead of a UPC. EANs include a 13-digit code that's almost identical to a 12-digit GTIN, except it has a single zero in front of the GTIN.

It should look something like this:

• UPC: 111111-11111-1
• EAN: 0-111111-11111-1

Types of UPCs

Although the UPC style mentioned above is the most common, other universal product code formats exist for specific uses. With the basics out of the way, let’s dive into the different types of UPCs commonly used by manufacturers.

• UPC-A: The most frequently used UPC type, UPC-A codes identify products intended to be scanned at a retail POS (e.g., a checkout line at a brick-and-mortar store).
• GS1 DataBar barcodes: This type of barcode has space for extra information, such as an expiration date. It’s most often found stuck to produce and other perishable products.
• ITF-14 barcodes: Some UPCs are attached to bulk packaging to help identify what's inside. ITF-14 assists in this process by appearing on the outside of large shipping containers, such as pallets and cartons.
• GS1-128 barcodes: This barcode type includes a longer string of numbers that incorporates the GTIN-12 into a code reflecting batch or lot numbers and item production dates.
• QR codes: You’ve probably seen these black-and-white squares popping up in place of paper menus at restaurants. Vendors often ask customers to scan QR codes on-site using a smartphone camera or app. They link directly to an online location, such as a website, where they can make a purchase or get more information about a product or brand.

3 advantages of using a UPC

Now that you know what a UPC number is, you may wonder what makes them so useful. Here are the primary advantages of using universal product codes in daily operations.

• Provide a unique identifier for each product. Having a UPC for each product makes it easier for checkout devices, either in-store or online, to identify and process items quickly. With a different UPC for every variant of every product you produce, your POS can scan a code and know instantly whether the product is an XL men's polo shirt in blue or a child's plastic toy horse with 14-inch mane and pink hooves.
• Automate product identification and tracking processes. Once upon a time, retailers had to sell products and track inventory by hand. Every time a customer made a purchase, the store owner had to manually record that product’s name and identifying characteristics and then use that record to create bills or invoices, reconcile inventory, and place new wholesale orders. UPCs are used to automate that process, making it faster and more accurate.
• Enhance customer experience by streamlining checkout. Everyone is in a hurry these days, and UPCs get customers through checkout lines and out the door faster. Scan the code, and the computer automatically registers what's being sold and how much it needs to charge for that item, dramatically reducing checkout time.

How to get a UPC

In the United States, businesses can get UPCs for their products from several nonprofits, including GS1 US, but it's crucial to find out beforehand which UPC codes your intended retailers will accept.

The exact process may differ depending on the organization you use, but in most cases, brands interested in acquiring a new UPC must go through the following steps:

1. Make a list of the UPCs you need. Remember, you'll need one for every product type and subvariety you intend to make and sell.
2. Pay your chosen company all applicable fees. You'll typically have to pay an application or membership fee up front. Then, you'll pay for the actual UPCs, often submitting annual fees to renew those numbers.
3. Get your manufacturer code. Every company using UPCs for their products must  have a unique six-digit brand identification number. This number forms the first part of every UPC assigned to your products.
4. Wait for your UPC codes. Finally, your chosen company will send you your official UPCs. You can usually download your codes and forward them to your packaging vendor or use them during production and sales.

Streamline your supply chain processes with Orderful

UPCs are just one way to build a more efficient business. For more help taking your company to the next level, speak to an Orderful expert about ways you can implement EDI solutions designed to improve your supply chain operations from start to finish.