What is a UPC Code?
A Universal Product Code (UPC) is a standardized barcode symbology used primarily in the United States and Canada to track trade items in retail stores. Introduced in 1974 when a pack of Wrigley's chewing gum became the first product scanned at a checkout, UPCs have revolutionized retail operations worldwide.
The UPC system was developed by George J. Laurer at IBM and is now administered by GS1 (Global Standards One), the international organization that manages barcode standards. Today, virtually every retail product sold in North America carries a UPC barcode, with over 6 billion barcode scans happening daily worldwide.
At its core, a UPC is a unique 12-digit number that identifies a specific product from a specific manufacturer. When scanned at a point-of-sale (POS) system, the barcode reader decodes this number, which the system then uses to look up the product's price, name, and other information from a database.
Key Fact: The first product ever scanned with a UPC barcode was a 10-pack of Wrigley's Juicy Fruit gum at a Marsh supermarket in Troy, Ohio, on June 26, 1974, at 8:01 AM. That pack of gum is now on display at the Smithsonian Institution.
How UPC Codes Work
A UPC barcode consists of two main components: the machine-readable bars and spaces (the barcode itself) and the human-readable 12-digit number printed below it. The barcode encodes the exact same information as the numbers—it's simply a different representation that scanners can read quickly and accurately.
The Scanning Process
- Light Emission: The barcode scanner emits a beam of light (usually laser or LED) onto the barcode.
- Reflection Detection: Black bars absorb light while white spaces reflect it. The scanner's sensor detects this pattern of reflections.
- Pattern Decoding: The scanner's decoder chip translates the reflection pattern into the 12-digit UPC number.
- Database Lookup: The POS system sends this number to its database, which returns the product's price and information.
- Transaction Processing: The product is added to the customer's order at the correct price.
Why Barcodes Matter for Retail
Faster Checkout
Scanning takes less than a second vs. 6+ seconds for manual entry, reducing checkout times by up to 40%.
Accuracy
Barcode scanning has an error rate of 1 in 10 million scans vs. 1 in 300 for manual entry.
Inventory Management
Real-time tracking of stock levels, automatic reorder triggers, and reduced shrinkage.
Supply Chain
Standardized identification from manufacturer to retailer enables efficient logistics.
Types of UPC Codes
There are two main types of UPC codes used in retail: UPC-A and UPC-E. Understanding the difference is important for choosing the right barcode for your products.
UPC-A (Standard)
UPC-A is the standard 12-digit barcode used on most consumer products. It's the most common type and what most people picture when they think of a barcode.
UPC-E (Compressed)
UPC-E is a compressed 8-digit version of UPC-A, designed for small packages where a full-size barcode won't fit. Commonly used on cigarette packages, small candy bars, chewing gum packs, and small cosmetic items.
Understanding UPC Code Structure
A UPC-A barcode is precisely structured to ensure global uniqueness and enable error detection. The 12 digits break down as follows:
- Number System Digit (1st digit): Indicates product category (0-9)
- Manufacturer Code (next 5 digits): Assigned by GS1 to identify the company
- Product Code (next 5 digits): Assigned by the manufacturer to identify the specific product
- Check Digit (last digit): Calculated to verify scanning accuracy
How to Get a UPC Code for Your Products
If you're a manufacturer or retailer looking to sell products with barcodes, you'll need to obtain legitimate UPC codes. Here's the recommended process:
Option 1: GS1 US (Recommended)
GS1 is the only official source for UPC codes. Joining GS1 US provides you with a company prefix that you can use to create unlimited product codes. Initial licensing fees range from $250 (10 products) to $10,500 (100,000 products), plus annual renewal fees.
Our Recommendation: If you plan to sell through major retailers or build a long-term brand, invest in GS1 membership. The legitimacy and reliability are worth the cost.
UPC vs EAN vs GTIN
These terms are often used interchangeably, but they have distinct meanings. GTIN (Global Trade Item Number) is the umbrella term that includes UPC (12 digits, North America), EAN (13 digits, international), and other formats.
A UPC-A code can be converted to EAN-13 by adding a leading zero. Most modern POS systems accept both UPC and EAN formats.
Best Practices for UPC Implementation
Barcode Printing Guidelines
- Size: Standard UPC-A is 1.469" wide × 1.02" tall. Minimum is 80%; maximum is 200%.
- Quiet zones: Leave at least 0.25" of blank space on each side of the barcode.
- Contrast: Black bars on white background is ideal. Avoid red, which scanners can't read.
- Placement: Bottom right of the back panel is standard.
Common Mistakes to Avoid
- Reusing UPC Codes: Each product variant needs its own UPC. Different sizes and colors are different products.
- Buying Cheap Codes: Major retailers verify GS1 database registration. Resold codes often get rejected.
- Poor Print Quality: Low-resolution barcodes cause scan failures at checkout.
- Insufficient Quiet Zones: Text or graphics too close to the barcode interfere with scanning.
Conclusion
UPC barcodes are the backbone of modern retail, enabling efficient commerce across the global supply chain. Whether you're a small business launching your first product or an enterprise managing thousands of SKUs, understanding UPC codes is essential for success.
Ready to look up product data by UPC? Try our UPC search tool or integrate our API into your application.