What is UPC Barcode and How Does It Work?

What is a UPC barcode? It refers to a string of lines and numbers on almost every product for sale. Think of it as a product’s unique fingerprint. Since the 1970s, these barcodes have been essential in stores everywhere, from your local grocery to big online retailers. 

It’s a must-have for everything you buy, from snacks to clothes. GS1 US is the place that gives out these barcodes, helping businesses grow from tiny startups to well-known brands. They make sure your product can be sold not just in one place but all around the world.

What is a UPC Barcode Actually?

A UPC barcode, short for Universal Product Code, is a 12-digit numerical code uniquely identifying a product. The first six to nine numbers are the company prefix assigned by GS1 US, which is the organization that standardizes and manages UPCs. UPC barcodes are a common language for retailers and suppliers, simplifying ordering and stocking products.

Read About: What is GS1 Barcode? Here is the Complete Explanations

Composition of UPC Barcode

After knowing what is UPC barcode, let’s learn its composition. This barcode is a collection of precise black bars and white spaces that encode a 12-digit number in a way that scanners can read. 

• The first part is the manufacturer’s identification number or the company prefix. GS1 assigns this, and it’s unique to each manufacturer;
• Following the company prefix is the item reference number, which the manufacturer assigns to each product to differentiate them;
• The last digit is the check digit. This is a single number calculated from the other eleven digits, designed to ensure the barcode is valid and has been scanned correctly.

The bars represent numbers from zero to nine. Each number comprises two bars and two spaces in varying widths. The barcode begins and ends with a group of bars known as the guard bars, which help the scanner detect and read the UPC correctly. In the middle, there’s a longer bar that separates the manufacturer’s identification number from the item reference number.

Who Uses UPC Barcode?

Knowing what is UPC barcode is, can be the key to opening global distribution channels, especially in Canada and the United States, because a broad spectrum of industries uses UPC barcodes. Their application is nearly universal in the retail sector, from the aisles of grocery stores to the checkout lines of electronic outlets.

They are essential in the food industry, where they help track expiration dates and batch numbers, ensuring consumer safety. In apparel, they manage a vast array of sizes, styles, and colors, simplifying the complex inventory that retailers handle.

Types of UPC Barcode

UPC barcodes come in two formats: UPC-A and UPC-E. Here’s the explanation for each of them that you must know:

UPC-A

The UPC-A is the most common and widely used version, consisting of 12 numerical digits uniquely assigned to each item. It’s comprehensive, containing a country code, a manufacturer code, a product code, and a check digit to ensure accuracy.

UPC-E

UPC-E is the shorter version, which compresses the standard 12-digit number into just six digits for smaller packages with limited space. It’s a condensed form that omits unnecessary zeros, suitable for small cosmetics and tobacco products.

How Does UPC Barcode Work?

After knowing what is UPC barcode, you might wonder how it works. It encodes information into a visual pattern. The pattern comprises a series of bars and spaces of varying widths. When a product with a UPC barcode is brought to the checkout, a scanner beams a red light at the barcode. 

The black bars absorb the light, and the white spaces reflect it. The scanner then converts the reflected light into an electrical signal, which is decoded into a digital format. This digital data corresponds to the numbers beneath the barcode, typically representing the product’s unique identification number. 

The scanner sends this number to the retailer’s computer system, which looks up the product in the store’s database to find the price and description. This process is instantaneous, allowing for quick and accurate transactions.

Is UPC Barcode Free?

Obtaining a UPC barcode is not free. To get a legitimate one, a company must apply for a unique manufacturer identification number through GS1, the global standards organization that governs the issuance of UPCs. 

There is a cost associated with this process, which includes the initial application fee and an annual renewal fee. The price varies depending on the size of the company and the number of unique products that require barcodes.

Are UPC and SKU the Same?

Understanding what is UPC barcode is helps in distinguishing it from an SKU. A UPC is a 12-digit barcode used universally and required for products sold within retail stores and the supply chain. It’s a standardized identification that allows products to be sold and tracked globally.

In contrast, an SKU, or Stock Keeping Unit, is an alphanumeric code that a specific store or company uses internally to track its inventory. SKUs are unique to each retailer or warehouse, allowing them to manage stock levels, sales, and product information.

How to Get a UPC Code?

To understand how to get a UPC, it’s essential first to grasp what is UPC barcode. A UPC barcode is a unique code assigned to products to identify them in the retail supply chain. Here’s a step-by-step guide to obtaining one:

1. Assess Your Needs

Calculate the total number of UPCs required for your product variations. Different sizes, flavors, colors, and shapes of a product will each need a unique barcode.

2. Select a UPC Provider

Choose between purchasing your UPCs directly from GS1 or through other barcode vendors. Ensure that the barcodes will be accepted by the retailers you plan to work with.

3. Understand the Costs

Be prepared for initial and recurring fees. The cost includes an initial payment for the UPCs and membership, followed by annual renewal fees. For instance, 27 UPCs from GS1 might cost $750 initially, with a $150 yearly renewal fee.

4. Receive and Implement Your UPCs

After purchase, you can download your UPCs from the provider’s website. These can be printed on your packaging, labels, or other materials.

Understanding UPC barcode is about connecting your products to the global marketplace. These barcodes ensure your products are ready for sale, tracking, and management across various platforms.

For more insights visit Markcom Global to discover how our expertise can streamline your product’s journey to the market!

References:

https://www.gs1us.org/upcs-barcodes-prefixes/guide-to-upcs

https://www.barcoding.com/blog/how-upc-barcodes-work-and-how-to-get-them

https://en.wikipedia.org/wiki/Universal_Product_Code#Numbering

https://www.nerdwallet.com/article/small-business/what-is-upc-barcode