Basic Overview of UPC Barcodes
The Universal Product Code (UPC) is a 12-digit identifier assigned to trade items in North America for buying and selling purposes. Each unique variation of a product, such as different sizes or colors, is assigned its own distinct UPC. A UPC barcode is a one-dimensional, machine-readable symbol that visually represents this identifier. The UPC-A format specifically encodes the 12 digits into a pattern of bars and spaces that scanners can easily interpret.
UPC-12 = GTIN-12
The UPC, also known as UPC-12, is essentially a GTIN-12, a globally recognized product identifier. To ensure compatibility with databases that require uniform lengths for all GTIN formats, the 12-digit UPC is padded with leading zeros, typically “00,” to create a 14-digit GTIN. This transformation maintains the integrity of the original identifier while enabling seamless integration with systems designed to handle GTIN-14 standards, ensuring accurate product identification and data management across global supply chains.
Obtaining GTINs and Barcodes
The method you choose to obtain barcodes for your products will depend on where you plan to sell them. GTINs can be acquired directly from the global standards organization, purchased through a third-party UPC reseller, or assigned internally within your company. Consider the following guidelines to determine the best source, keeping in mind the specific purpose of the UPC and the requirements of your trading partners.
Most national retailers, including Amazon, Wal Mart, Kroger, Target, The Home Depot and several others explicitly direct suppliers to get UPC (GTINs) licensed by GS1 and prohibit the use of UPCs obtained from UPC resellers.
Refer to this table to determine available options for obtaining UPC barcodes:
UPC used for: | GS1 | UPC Resellers | Internally Assigned |
---|---|---|---|
UPCsfor use on Amazon Vendor Central or Amazon Seller Central. | ✔ | ✖ | ✖ |
UPC Number registered with the GS1 and available to retailers and trading partners via GTIN.cloud. | ✔ | ✖ | ✖ |
Items being sold by local stores and small regional retailers. | ✔ | ✔ | ✖ |
Items being sold to a distributor. | ✔ | ✔ | ✖ |
iTunes, CDs or music titles. | ✔ | ✔ | ✖ |
Items being sold on your own website, or used internally to support accounting | ✔ | ✔ | ✔ |
Items being sold by large national retailer such as; Walmart, Kroger, The Home Depot, and Amazon. | ✔ | ✖ | ✖ |
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GS1 Global Standards
The safest and recommended way to get barcodes is through GS1 barcode service, which includes GTINs licensed to your company (brand). GS1 is the global standards organization that governs Global Barcode Specifications and administers licensing of unique identifiers. The local GS1 office offers individual GTIN assignments and Company Prefixes for blocks of GTIN identifiers, depending on how many are needed.
Benefits of using GS1 GTINs
- GS1 licensed GTINs are acceptable at any retailer around the globe.
- UPC barcodes licensed by GS1 are registered to your company (brand)
- Retailers and marketplaces (Amazon) use tools, such as GTIN.cloud and Verified by GS1 to authenticate GTIN ownership.
- GS1 offers paid certifications and classes enabling companies to understand GTIN barcode requirements.
Disadvantages of GS1 GTINs
- The fee for obtaining GS1 GTINs and Prefixes is based on the total number of unique items requiring barcodes and can be expensive.
- Companies with Company Prefixes for 10 or more GTINs are required to pay an annual renewal fee for continued Prefix Licensing.
- Complex registration and GTIN management processes.
- Basic GS1 licensing fees do not include GTIN support, so additional GS1 Barcode Support subscriptions are required, if companies do not invest in certification classes.
Since GS1 does not provide the actual certified print-ready digital barcodes nor support, members either need to subscribe to GS1 Barcode Support programs (barcodes provided) or use UCC/GS1 certified software to generate .eps barcodes (createbarcodes.com).
3rd Party UPC Resellers
UPC Resellers are privately owned for profit companies that sell UPC Numbers which were originally assigned by the Uniform Code Council (UCC) before 2001. These companies are not regulated so prospective buyers need to assess the legitimacy of the offering and if they safeguards to protect their assignments.
Most national retailers, including Amazon, Wal Mart, Kroger, Target, The Home Depot and several others explicitly prohibit the use of UPCs obtained from UPC resellers.
How 3rd Party UPC Resellers Originated
Prior to 2001, UPCs were administered by the Uniform Code Council (UCC). The UCC then merged into a local office of GS1 Global. Leveraging their position, the GS1 US instituted an annual fee to maintain Company Prefixes.
Original UCC members responded by filing a Class Action lawsuit against the GS1. The case was brought to the US Supreme Court and a hefty settlement reached and an acknowledgement that UPCs assigned prior to 8/28/2002 were not subject to GS1 annual fees. Since there was no documentation in the original UPC Certificates limiting the transferability of UPCs, a gray market of 3rd party UPC reseller industry was born.
It is important to note that many of the online offerings provide inaccurate and misinformation. Buyers should understand the risks prior to purchasing.
Benefits of using 3rd Party UPC Resellers
- No annual renewal fees
- Very low prices
- No registration or product upload of data required
Disadvantages of 3rd Party UPC Resellers
- Amazon, Walmart, Kroger, The Home Depot and several other retailers require UPCs directly from the GS1
- UPCs purchased from a reseller share a common UPC Prefix and can be hijacked or used by another company.
- Many resellers are not reputable businesses who are aggressively trying to exploit companies needing UPC barcodes.
- Due to the lack of legal jurisdiction – there’s no way to prevent UPC Numbers sold by a UPC Reseller, from being used by another company.
Last note, Amazon requires UPCs obtained directly from the GS1 and explicitly states UPCs from a third-party reseller are not acceptable and may cause your entire Amazon Account to be suspended.