The barcode was first scanned in 1974, on a packet of Juicy Fruit gum. Since then, the technology used in scanning products in the retail marketplace has become commonplace. In today’s ecommerce space, a labeling system is critical. Merchants should implement it as soon as possible.
While many use the terms “SKU” and “UPC” interchangeably, they are actually very different. First off, an SKU (stock keeping unit) is strictly for internal use. A UPC (universal product code) is affixed to a product wherever it is sold in the retail market place. An SKU is the smallest unit of product or service. Since an SKU is unique to a company, a product would have different SKUs if sold by different companies — but they would have the same UPC.
While many use the terms “SKU” and “UPC” interchangeably, they are actually very different.
SKU Basics
Let’s start with SKUs. They are used by companies to account for product in inventory and units of billable entities sold. SKUs help companies to efficiently track the numbers of individual variants of product or services sold. They are not to be confused with the model number of a product, although model numbers and attributes are often included in all or part of an SKU.
An SKU is alphanumeric and used for internal purposes. Image: Barcoding.com.
An SKU should be unique to your company. You can print a label that displays the SKU in the human readable form and also as a barcode for the purposes of scanning.
Do not use a manufacturer’s SKU as yours. If you resell products sourced from a manufacturer, it may change the barcodes or you may source the product from a different manufacturer. If that happens, your SKU is out of sync and must be updated.
SKUs are typically used by warehouses or fulfillment centers, catalogues, ecommerce platforms, and marketplaces. There are many ways to identify your SKU. In my experience, companies often complicate their SKUs and make them too long.
You can certainly include attributes such as color, size, style, date purchased, manufacturer or location purchased, cost, condition, and warehouse location. I suggest eight alphanumeric characters for SKUs. Amazon allows you to include up to 40 characters in an SKU. But keep in mind that Amazon doesn’t receive, put away, or pick from your SKU. Amazon’s assigns an ASIN (Amazon standard identification number), which is a unique set of ten alphanumeric characters.
SKU Dos and Don’ts
Consider what purpose the SKU serves, and the audience. Your decision should be tailored to meet the audience’s needs. Here are some basic do and don’ts.
- Do keep it for internal use only.
- Do keep it simple enough to be understood by a fifth grader.
- Do keep it short, but not so short that it’s confused with a quantity.
- Do start with letter(s). It’s easier to discern and sort in spreadsheets and sort during receiving, put away, and picking.
- Do not reuse the SKU for a different product.
- Do not start with a zero or use characters or symbols that can be confusing or misread by humans or software.
- Do not use numbers or letters — use both.
- Do not use a manufacturer’s serial or part number for your SKU. These numbers are often too long and cryptic. Plus, if you switch suppliers or the manufacturer changes the number, it becomes meaningless to your organization.
- Do not load item numbers with meaning — i.e., do not try to use the item number to describe your product. This will only make your numbers longer, and more complicated. Save this information for the item description.
UPC Basics
You shouldn’t need a UPC unless your product is going to enter the retail space. If, however, you need a UPC, here are some basics.
The UPC code is affixed to a product wherever it is sold, remaining a constant throughout the product’s shelf life. Since an SKU is unique to the company, the same product would have different SKUs if sold by different companies, but they would have the same UPC. UPCs are 12 digits, numeric only.
UPCs must be purchased to ensure that the same two sets of numbers are not issued to more than one company. Many UPC providers sell them online and, for the most part, do so with integrity. But be cautious.
The authority for maintaining standards is GS1 (formerly the Uniform Product Code Council). That organization is the best source to assist meeting any compliance requirements. The EAN (European article number) serves the same purpose as the UPC and has thirteen digits. Check with your retailer to determine if the UPC can be used in the appropriate country or if it must be modified.
In short, remember that SKUs are for internal use. UPCs are for external or universal use.
FAQs
The main difference between SKUs and UPCs is that SKUs (stock-keeping units) are for internal use and UPCs (universal product codes) are for external use. Both are useful for tracking and managing inventory, monitoring supply chains and analyzing sales trends. However, SKUs and UPCs can have different characteristics.
What is the difference between EAN and SKU? ›
SKU is an identifying series of numbers and letters that can change depending on which business is inventorying the product. EAN is an international identifier that has been absorbed into the GTIN system. All of these numbers are good for building credibility for your online store.
What is the difference between EAN and UPC? ›
A UPC is a 12-digit barcode used in North America to identify most products. The rest of the world uses 13-digit EAN barcodes to identify products. However, both types of barcodes are part of GS1's international standards, so both are accepted globally.
What is an SKU example? ›
SKU code examples
A SKU code for a black T-shirt of size S can be TSH-000-S. The same T-shirt in a different size can be TSH-000-M. If the T-shirt is white and size M, the SKU code can be TSH-FFF-M.
What does a SKU code look like? ›
SKU numbers vary based on the retailer's chosen format, but here are a few examples: Example 1: ABC-12345-S-BL (Brand: ABC, Product ID: 12345, Size: Small, Color: Blue) Example 2: 01-200-GR-M (Department: 01, Item number: 200, Color: Green, Size: Medium)
Are SKUs the same as barcodes? ›
Within Thrive, the main difference is a barcode can be re-used with multiple variants, while SKUs must be unique. Each integration we integrate with may have its own rules on how they handle SKUs and barcodes. To keep your inventory orderly and syncing properly, SKUs must be unique when using Thrive.
Does EAN mean barcode? ›
The International Article Number (also known as European Article Number or EAN) is a standard describing a barcode symbology and numbering system used in global trade to identify a specific retail product type, in a specific packaging configuration, from a specific manufacturer.
Are SKUs always numbers? ›
A stock-keeping unit (SKU) allows vendors to track inventory. It consists of alphanumeric digits and a scannable bar code printed on a product label. The characters define a code that tracks the price, product details, manufacturer, and point-of-sale.
What is EAN in inventory? ›
EAN stands for “European Article Number”, but when talking about EAN codes in general, it usually refers to the EAN-13 code. A 13-digit number that serves to identify each product individually and unambiguously in all countries of the world.
Can I use EAN in the USA? ›
You'll never have to worry about code duplication, regardless of where in the world you're selling. You can be confident that your EAN code works in the U.S. and that your UPC is functional in Europe.
Once your bar codes are issued to you they are yours for life. There are no future fees. You would assign a given UPC/EAN (GTIN) to a specific product and it would stay with that product for life. When you cease manufacturing/selling that item you would not reassign that GTIN to any other product.
Can you convert EAN to UPC? ›
UPC barcodes are 12 digit barcodes and are used exclusively in the United States and Canada. You can convert a UPC barcode to an EAN, but you cannot go the other way. This is because the Country Code for both the U.S. and Canada is zero. EANs are 13 digit codes and unlike UPCs contain a country code.
What are the 4 types of SKU? ›
There are several types of SKUs, including:
- Style SKU: Identifies a unique product style.
- Size SKU: Specifies the size of a product.
- Color SKU: Differentiates products based on color.
- Configuration SKU: Refers to products with different configurations, such as different sizes or colors.
Basic SKU: If you are creating a public IP address in a region that supports availability zones, the Availability zone setting is set to None by default. Basic Public IPs do not support Availability zones. Standard SKU: A Standard SKU public IP can be associated to a virtual machine or a load balancer front end.
How do I find my product SKU number? ›
Typically, SKU numbers are listed on the product's packaging — usually above the product's barcode, as seen below. While the 12-digit numeric code on the bottom is the product's UPC (Universal Product Code), the alphanumeric code at the top is the SKU number (which is different from the UPC).
What does SKU mean in shipping? ›
SKU or Stock Keeping Unit refers to a unique code given to identify a particular type of product in the inventory. SKU is the abbreviation of stock keeping unit.
Is SKU the same as item number? ›
It is actually the same thing. Item identification numbers (item numbers) are also referring to a number used internally as a unique product identifier. Some organisations will call these codes: part numbers, model numbers, product codes, SKUs, or item numbers…
What is the purpose of a SKU number? ›
What does SKU mean? A stock-keeping unit, or SKU, is a unique code that a seller assigns to every type of item it sells. SKUs are also an important part of a merchandising structure, allowing merchants to arrange inventory in their stores or warehouses according to product SKUs.
