Why Are UPC Barcodes Important for Retail and E-Commerce?

Around the world, countless methods and practices are used to organize products efficiently for stocking, sale, and tracking across networks. These range from the internal systems that companies employ to more globally recognized structures that are utilized by numerous industries and operations alike. One of the most widely used systems in retail and e-commerce specifically is the Universal Product Code (UPC), a unique barcode that is leveraged to identify and track products in countless stores, warehouses, and more. This blog will explore what a UPC is, how it came to be, and why it is integral to retail and e-commerce today, so read on if you would like to learn more.

What Is a Universal Product Code?

A Universal Product Code is something that can be found printed on the packaging or housing of nearly every retail product that is for sale, containing information that can be quickly read and interpreted by a barcode scanner. Each UPC is made up of two parts, which are the highly visible barcode and a 12-digit numeric code that is often situated underneath. The barcode itself will be a series of black and white bars of varying thicknesses, each specifically representing a number. When read with a barcode scanner, the product’s information can rapidly be retrieved through its tracking code.

The 12-digit number can also be divided to represent further information, with the initial six digits being the manufacturer’s identification number that is assigned by the body responsible for overseeing codes. The next five digits are the item number, which is unique to the product itself. Lastly, the final digit is known as the check digit, which is used as a safeguard feature that allows the scanner to know the code was read correctly.

The Origin of the UPC System

The UPC system traces its roots back to the 1970s, when the grocery industry was seeking a way to reduce the inefficiencies of checkout processes. Before UPC barcodes were implemented, cashiers had to manually enter product information every time, which led to a high rate of errors and longer turnaround times. Developed by Uniform Product Code Council (UPCC) in 1974, the first UPC barcode was scanned at a point of sale (POS) terminal in Ohio as the start of a retail revolution. The success of the system was immediate, and it quickly spread to other industries beyond grocery stores, now being a staple of global retail and e-commerce.

The Role of UPC Barcodes in Retail and E-Commerce

In various settings, UPC barcodes play a pivotal role in ensuring smooth and efficient operations. Below, we have listed the main advantages that retail and e-commerce have with the use of the UPC system:

Inventory Management: For retailers, keeping track of inventory and knowing when a restock is needed can be a complex task, with UPC barcodes simplifying processes by allowing personnel to easily identify items and track quantity with a simple scan. For e-commerce businesses, this is equally important, as inventory levels can be updated automatically as they are ordered and shipped with such data.

Streamlined Supply-Chain Management: From the moment a product leaves a manufacturer to its delivery at a retailer, its journey can be monitored with a UPC tracking code, alongside shipping provider details. This can allow for increased transparency during trade for the benefit of businesses and customers alike.

How Are UPC Barcodes Obtained?

If you are a business looking to sell products in retail stores or online, obtaining approval for a UPC barcode is a necessary step. This process involves registering with GS1, the global organization that is responsible for managing all codes. Upon registration, you will receive a unique manufacturer identification number, which will be included in the Universal Product Code for all of your products. While there are fees involved in obtaining UPCs, the benefits of having a standardized identification system are invaluable for any business seeking to scale its operations and sell products across multiple platforms.

Conclusion

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