A UPC is a universal code used by all vendors, manufacturers, and distributors. Many retailers will use both SKUs and UPCs, but one can’t replace the other. A UPC is a numeric, 12-digit code assigned to products across all retailers and vendors. The UPC doesn’t contain letters, it’s always 12 digits long, and it’s printed as a barcode. If two retailers sell the same product, the SKU will be different, and the UPC will be the same. An upc code vs sku SKU is a scannable, alphanumeric code assigned to a product by a retailer.
Whatever solution you use for reliable inventory management, be sure you know the basic differences between UPCs and SKUs, and follow the best practices for each. UPC codes might sound like the most appealing, as they’re universal and they come on the product. Despite this, there are situations where a SKU could be more beneficial for your business. Take a brand of blueberries for example, every carton of those blueberries, regardless of the specific grocery store that sells them, will have the same 12-digit UPC code. On the other hand, a SKU number that’s too short can make it easy to confuse with a product quantity code. It had a UPC for the manufacturer and a SKU sticker from the store.
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And if you’re searching for ways to achieve greater efficiency by implementing barcoding and a warehouse management system, you’ll definitely want to read our Guide to Warehouse Labeling. Just click the link below to download your free copy today. Our free barcode generator allows you to create the barcode graphic you need for SKUs and UPCs just by providing your barcode symbology and data. Take a brand of blueberries for example, every carton of those blueberries, regardless of the specific grocery store that sells them, will have the same UPC code. Start SKU numbers with letters, which makes them easier to read. Don’t start with a zero or other characters that could be misinterpreted by human readers or by computers.
- You can contact GS1 to make sure you meet the necessary compliance requirements.
- However, outside the US, Canada, and Mexico, GTINs are typically 13 digits long instead of 12.
- The ShipBob dashboard offers real-time visibility into your inventory, orders, and shipments across locations with analytics to help you grow.
- This, in turn, can help reduce the risk of stockouts or overstocks, leading to improved customer satisfaction and better inventory control.
Think of UPCs as a product’s global ID and SKUs as your store’s personal nickname for it. Global Trade Identification Number (GTIN) are an extension of the UPC code system, designed to accommodate a broader range of product identifiers. GTINs can include 8, 12, 13, or 14-digit bar codes, depending on the type of product and the region in which it is being sold. Like UPC codes, GTINs are used to uniquely identify products and facilitate the exchange of product information between businesses, making them an essential tool for global trade and supply chain management.
Characteristics of SKUs
Check out our guide to barcodes, RFID tags, and QR codes to find the best scanning system for your business. Not only can UPCs be barcodes, it’s practically a requirement to print your UPC barcode on your product packaging. The next two to five digits of the UPC, though, is at the discretion of the UPC owner. Many companies opt to include their internal item number as part of their UPC, though that’s certainly not required. Manufacturers that hold the intellectual rights to an item may opt to use the item’s part number.
- SKU and UPC codes are different but have many of the same uses and best practices.
- You should never change a UPC code once it’s assigned to a product.
- Creating a standardized SKU system is crucial for effective inventory management.
- In this guide, we’ll delve deeper into UPC vs. SKU, highlighting the main differences and outlining the use of different types of codes for sales, tracking, and inventory management.
Why Barcode Verification Matters for Your Business
These codes provide important information about your products and are used to distinguish them from one another. Although they serve a similar purpose, there are some key differences between SKUs and UPCs. In this blog, we will discuss what SKUs and UPCs are, how they can help manage your inventory, and what the main differences between them are. Choosing the right codes for your business depends on your specific needs and requirements. UPC barcode is a standardized and globally recognized, making them ideal for facilitating communication between businesses.
Key Differences Between SKU and UPC Codes
This makes inventory management and inventory tracking much more efficient. And since UPCs follow your product after you’ve sold it, they make it easy to track your products through every phase of the supply chain and across multiple retailers after they leave your warehouse. If you’ve been researching inventory management options, you might have noticed that many resources use the terms SKU and UPC interchangeably to refer to product identifiers. But while you can use either option to track your products, UPC codes and SKU numbers are not actually the same. As a tech-enabled 3PL, ShipBob’s inventory management software and analytics lets you name your own SKUs according to your rules.
UPCs can only include numbers, and are limited to 12 digits. In commerce, barcodes are used for product identification. SKUs use barcodes sometimes, whereas UPCs Essentially, a barcode serves as a visual representation of SKU’s or UPC’s numeric code. Likewise, UPCs are your best bet if you’re selling your product internationally. UPCs are recognized worldwide, so you’ll need them to sell in some countries where regulated product codes are required. SKUs can also be helpful if your company sells hundreds or thousands of items since shorter, alphanumeric SKUs make it easier to find and track specific products.
FAQ About SKUs And UPCs
Each product that a company stocks and sells should have its own identity, something to tell it apart from other products. In a modern WMS software (like the one offered by SmartB), it is easy to create a serial number for each product and this can be printed internally. A Serial Number is a sequential number that is assigned to a single item of a product. It is there so you can track ownership and warranty information of that item. This is also usually the number with the bar code that is printed on the packaging or cover of the item.
Unlike SKUs and UPCs, barcodes are used as identifiers by all kinds of businesses — not just retail companies. Therefore, barcodes are not always the same thing as SKUs and UPCs. SKUs are alphanumeric codes, meaning that they include both letters and numbers, and can technically be any length.
Examples include the number printed on the can of a coca-cola bottle or on the wrapping of a cereal bar. Did you know that UPC, SKU, and Serial Number are three different unique identifier code? In case you haven’t realised by now, than let’s make it clear from the start, they are fundamentally different codes/number, but has many overlapping features.
Typically, a Universal Product Code (UPC) is the number (or code) that is unique to a product and it is universal to it. That means the exact same number is used no matter where the product is being sold, you could take a product you buy from one store and it would still be valid in another store. Characters in SKU numbers can represent information such as manufacturer, color, size, cost or warehouse location, etc. However, if you try to pack too much information into a SKU number, it can become long, confusing, and create a greater risk of data entry errors or packing and shipping errors. The structure’s fixed, and the ownership isn’t really yours. It assigns the first digits—usually the manufacturer code.
Yes, Global Trade Item Number (GTIN) and Unique Product Code (UPC) are technically the same thing. A UPC is a GTIN-12 (12 digit code) type code that can be found in the products sold in North America. Just like European Article Numbers (EANs), UPC codes are one of the many types of GTIN Codes found on product labels globally. Thus, you should consider investing in UPCs if or when your business begins expanding into B2B, wholesale, retail, or online marketplace channels. Having UPCs in these arenas will help you track your product regardless of where it goes, and helps you compete with other retailers selling the comparable products.
Unlike UPC codes, which are standardized and globally recognized, SKUs are created by individual businesses and tailored to their specific needs. SKUs can include a combination of letters, numbers, and other characters, and they often encode information about the product, such as its color, size, or style. Having a well-managed inventory is essential for any business, whether it’s a small retail shop or a large corporation. To easily track your products and keep your inventory organized, you need to use unique identifiers such as a SKU and UPC.
UPC codes are universally recognized, which allows them to be scanned globally. SKU codes are created by businesses to track inventory and sales internally. The creation and distribution of UPCs are overseen by the Global Standard 1 (GS1), ensuring each product receives a unique identifier. This global standardization facilitates efficient product tracking from manufacturing through to retail, simplifying transactions, and inventory management on a vast scale. Depending on your business model, both code types might not be required — but they make life a whole lot easier when used together, especially if you want to expand to other markets.
