What is the Universal Product Code (UPC)? Usage Areas

In today’s rapidly digitalizing global trade, accurate product identification and traceability are more important than ever. At this point, the Universal Product Code (UPC) ensures that products are recognized in a standardized and reliable way across both physical stores and e-commerce platforms. So, what is a UPC, how is it obtained, and what advantages does it offer businesses? We explain all in this Papel Blog article.

What is the Universal Product Code (UPC)?

The Universal Product Code (UPC) is a barcode and product identification system that allows products to be uniquely identified worldwide. With its 12-digit numerical structure, it assigns a unique identity to each product and facilitates quick product recognition, automatic price display, and stock tracking—especially at retail points of sale.

Assigned by the manufacturer, this code is converted into a barcode and can be scanned at checkout or in warehouse systems. In this way, the product tracking system operates digitally, quickly, and accurately.

UPCs are used not only in stores but also in e-commerce platforms to ensure accurate product listings, up-to-date stock information, and compliance with global sales channels. Generally used in North America, the UPC system is similar in function to the EAN (European Article Number) system, which is more common in Europe, though they differ in digit count and regional usage.

Usage areas of the UPC

The Universal Product Code (UPC) is a universal product identification system that enables tracking of products throughout their entire lifecycle, from production to sale. It speeds up processes, reduces errors, and simplifies product tracking in both physical retail and e-commerce ecosystems.

One major usage area is retail points of sale. Thanks to the UPC, products are automatically recognized at checkout. Price, stock, and sales information appear instantly, and transactions are completed quickly and accurately. The barcode system also digitizes store operations, increasing efficiency. Another key application is inventory management and supply chain tracking. UPC makes it possible to monitor product entry into warehouses, shipments, and distribution to stores. This simplifies stock control, optimizes order planning, and allows errors or recalls to be managed quickly.

On e-commerce platforms, UPCs ensure accurate product listings and consistency across global sales channels. Even when the same product is listed by different sellers, the system matches them via the code, making UPC the most reliable standard among product identification systems. In barcode number inquiries and product tracking systems, UPC enables access to information such as product authenticity, production date, and manufacturer details. This plays a key role in combating counterfeit products and ensuring transparency across the supply chain.

How to obtain aUPCe

Businesses wishing to obtain a UPC must follow a standardized process to make their products recognizable in global trade. This ensures each product has a unique identity and that the barcode is globally valid.

The first step is for the brand or manufacturer to determine which products require codes. Each distinct product, package, or variation requires a separate UPC.

Next, registration is done through GS1 (Global Standards 1), the organization that governs global barcode standards. GS1 manages both the UPC (Universal Product Code) and EAN (European Article Number) systems. In Türkiye, this process is administered by GS1 Türkiye (TOBB). Upon registration, each business receives a unique “Company Prefix,” which serves as the foundation for all product codes under the brand.

Then, a unique GTIN (Global Trade Item Number) is assigned to each product, converted into a barcode, and printed on packaging. The barcode must comply with GS1 standards and be easily scannable.

Finally, to maintain code validity, the GS1 membership must be renewed annually. This ensures barcodes remain active and products are properly identified both in stores and across e-commerce platforms.

Differences between UPC and EAN

The Universal Product Code (UPC) and European Article Number (EAN) are product identification systems with similar purposes, but there are key differences between them.

The first distinction is that the UPC has 12 digits, while the EAN code has 13 digits. This extra digit allows for a greater range of product identification within the EAN system. Regionally, UPC is more common in North America, while EAN is used across Europe and other global markets.

EAN codes often include a prefix that indicates the country or region, while UPCs typically contain only manufacturer and product details. Today, most barcode scanners can read both formats, but for businesses selling internationally, the EAN code is generally a more common and secure choice.

Both systems are governed by GS1 standards: UPC uses the “GTIN-12” structure, while EAN uses “GTIN-13.” In short, UPC and EAN serve the same purpose but are two standardized systems used in different regions.

Advantages of UPCs for businesses

The UPC system provides businesses with operational efficiency, reliability, and global visibility. A correct and standardized UPC allows products to be easily tracked and reported through the Papel Merchant Hub.

A proper UPC ensures that products can be listed effortlessly on retail networks and e-commerce platforms, increasing brand visibility. With barcode integration, stock movements are tracked automatically, errors are reduced, and inventory management becomes more efficient. UPC usage speeds up checkout and shipping processes, improving accuracy and customer satisfaction.

In addition, UPCs define products under the Global Trade Item Number (GTIN) standard, allowing brands to be recognized in international markets. Barcode-based product tracking gives brands a significant advantage in security, quality control, and anti-counterfeiting efforts.

 

Sources: 1, 2.  

 

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