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Vol. 127 - NO. 39

Blog Startup CPG

SINCE 2019

Five Considerations for Setting Up Your Brand’s UPC

It’s well known in our community that GS1 US is the go-to for barcodes. If you want to be sure you’ll hear that “beep” at checkout, they’re the gold standard when it comes to credibility and authenticity for omnichannel commerce. And you’ll usually need another UPC for the unit cases, which will be scanned throughout your supply chain and feed all that good data into your inventory management system.

Because the cost of barcodes is relatively cheap compared to the monumental problem you’ll have if they don’t work, we recommend going with the tried and true GS1 system. As a not-for-profit standards organization, GS1 US enables businesses to share reliable data worldwide and across physical and digital supply chains. 

As easy as they make it, brands always have questions when they actually go into the portal to create their barcode and see a few unfamiliar terms. We know it can be high anxiety because while your marketing may change, your UPC is forever, and we want to make sure it is set up right the first time with no surprises.

Here are 5 things to consider when setting up your brand’s UPC.

1. Understand the role of GTINs and UPCs

Global Trade Item Numbers (GTINs) and Universal Product Codes (UPCs) are often confused as the same, but serve different purposes. GTINs are unique codes that identify products and store data like prices, attributes, and shipping details. They’re used in online marketplaces, inventory management, and databases.

UPCs are barcode symbols that scan and carry GTIN data. In retail, GTIN-12s are typically used for pricing and inventory, while in e-commerce, UPCs help with product search, authenticity validation, and matching customer needs.

2. Not all UPCs are created equally

We recommend small brands avoid third-party UPC sellers outside the GS1 system, as they may offer reused GTINs, which could create a real headache.

For brick-and-mortar retailers, a functional UPC is essential for POS scanning and smooth inventory flow – imagine the bottleneck an unscannable product would cause on the receiving floor, or at checkout. For e-commerce, authentic UPCs protect your brand from counterfeiters and hijacking, especially on platforms like Amazon.

Amazon requires a GS1 US-purchased UPC. “We verify the authenticity of product UPCs by checking the GS1 US database. UPCs that do not match the information provided by GS1 will be considered invalid. Obtain your UPCs directly from GS1.” A moderator in their Seller Central discussion board added, “Amazon only allows UPC’s bought directly from GS1 to be used on our site. Using UPC’s from a third party are not allowed and you will not be allowed to list your items. You can review the policy here.”

3. Operate with a growth mindset — consider a prefix!

A Prefix is a licensed number used to create GTINs, Global Location Numbers (GLNs – which identify locations in the supply chain), and other identifiers, linking your brand, products, and locations. While you may end up paying more, it reserves you a range of GTINs. Having your numbers grouped together has numerous advantages – you can appear more organized with retailers, and prefixes are a better option if you’d like to create manufacturer coupons, too. 

4. You’ll need a GTIN for more than just the scanning unit

Packaging levels in GS1 US’ Data Hub follow a hierarchy, which you’ll need to follow for your brand. Here’s a quick breakdown:

  • Each: Individually sold items, assigned a GTIN-12 (UPC).
    Example: One jar of strawberry jam.

  • Inner Pack (if applicable): A package containing multiple units, which can be marked as for consumer purchase or shipping only.
    Example: Four jars of jam, either for consumer sale or shipping.

  • Case: A shipping unit with “eaches” or inner packs, all using the same GTIN.
    Example: A case of 8 jars of jam.

  • Pallet: A unit containing cases, inner packs, or eaches, using one GTIN for all items.
    Example: A pallet of 18 cases of jam.

For more details, check GS1 US’s packaging hierarchy guide.

5. If you change your product, you may need to change your GTIN

There are 3 key reasons to assign a new GTIN:

  • Consumer Impact: If the product is perceived as different by consumers, a new GTIN is needed.
    Example: A limited-edition holiday version of your RTD seltzer with new packaging requires a new GTIN.
  • Regulatory Considerations: Changes in formula or compliance with regulations (e.g., FDA guidelines) necessitate a new GTIN.
    Example: A food product with 10% less sugar than before requires a new GTIN due to the formula change.
  • Supply Chain Impact: Changes in size, weight, or how the product is shipped or stored require a new GTIN.
    Example: If your fresh food product is now shipped frozen, a new GTIN is required due to supply chain changes.

The reason is that business partners need to exchange up-to-date information about products in consistent ways, not just for supply chain efficiency, but also to help shoppers make educated purchase decisions. These principles became far more necessary with the rise of e-commerce, since products have a much farther reach than ever before. It’s no longer just about what’s on the shelf, and reused GTINs cause confusion across multiple channels and systems.

Now that you have some knowledge of how it all works with GS1 US, check out the barcode estimator to get started.

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