If you plan to sell your products to retailers then you will probably need a UPC barcode. What is a UPC? UPC or Universal Product Code is a 12 digit number you can see on most product packages. The UPCs are assigned by GS1 US which is a non profit organization.

You need to apply to get your UPC barcode and then use it on your product packaging. Retailers scan the UPC of your products and automatically charge the right price for your product and manage automatically the inventory and tracking of your products. UPC barcode is a must have for your small business if you plan to sell your products to retail stores.  

How does UPC work?

The retailers interested to buy your products will ask for your UPC barcode as well as product details including product description such as size and color. They update their information system with your product information so when they scan your product they are able to charge the product price and update their inventory system automatically. They further use the system to track the products and communicate with you to place an order.

Your small business will need different UPC barcode for each product you sell. Variations of the same product need different UPCs. For example, if you sell the same product in different size every different product packaging requires different or unique UPC. The cost associated with dealing with GS1 US can be high, for example you are required to pay an initial fee and annual maintenance fee and the cost will depend on how many different products you sell as well as your revenue from these products.

You can avoid joining GS1 by working with companies which resell UPCs. By doing this you can save a lot of money. For example by doing business with GS1 your annual cost will be more than $1,000 while by working with resellers you can get your UPC barcode for less than $50. You can use your favorite search engine and search for “UPC reseller”. UPC resellers buy UPC bar codes in bulk from GS1 and then resell them to small businesses. This is a good alternative if you have a few products, but if you plan to sell through major retailers then you will probably need to apply for membership with GS1. When you work with UPC resellers you actually use their own ID numbers to sell your products and major retailers will require you to use your own IDs.

While traditionally developed for the retail industry UPC barcodes today are used in B2B (Business to Business) industries because the use of technology today allows organizations a better shipping, tracking and inventory management with barcodes. Again, if you plan to do business with major players you will definitely need UPC barcode for your products.

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