What are Product Codes? Basic Product Codes for Online Sellers

By Thomas Bennett Financial expert at Priceva
Published on March 30, 2023
Every seller has a collection of goods that they need to add to their inventory management system. These items might also be listed through other channels, including their E-commerce site or distributed via their brick-and-mortar business's point of sale. How to monitor all these items? The answer is simple – assign individual product codes.

In a nutshell, a universal product code serves as both your product’s digital fingerprint and unique identity. Every merchant and marketplace can use these codes to track sales, determine how well a product has sold, and improve inventory management. This article describes the most widespread types of product codes and where they are used.

Stock Keeping Units (SKUs) - Internal Product Management

Stock Keeping Units (SKUs) are internal product codes designed to help businesses efficiently track inventory across their operations. Unlike EANs or ISBNs, which are internationally standardized for global product identification, SKUs are fully customizable internal identifiers that help retailers manage stock movement, sales tracking, and restocking processes.
An SKU typically uses a structured alphanumeric format, describing attributes such as product type, brand, size, or material. For example:

  • Electronics: LAPTOP-DELL-15-8GB-SSD
  • Clothing: SHIRT-BLU-MED-COTTON
  • Tools: DRILL-PRO-20V-CORDLESS
These codes might differ by business, but consistency is key. A well-structured SKU system simplifies categorization and helps teams in the supply chain identify and locate items quickly, making it easier to track product performance and inventory flow.

The difference between SKU vs UPC lies in scope: SKUs are for internal product codes, while UPCs are external identifiers used for global trade and scanning systems.

Best practices include using clear naming conventions, avoiding special characters, and ensuring future scalability. Integrating SKUs with digital inventory management systems allows businesses to streamline operations, improve accuracy, and respond faster to stock changes—ultimately making it easier for retailers to maintain operational efficiency.

Global trade item number (GTIN)

An international number, known as GTIN (Global Trade Item Number), is used to manage millions of product references globally. 13 digits are used to produce the code. Depending on the kind of goods and the country of sale, there can be several variants of this code, such as:

  • UPC
  • EAN
  • JAN
  • ASIN

To locate items from E-commerce merchants, as well as to search for and compare products on marketplaces, search engines are becoming a vital tool for online consumers. GTIN plays a crucial part in facilitating that process. By including them in the product listing, your chances of standing out in the market will rise, which will result in an increase in organic traffic. As an illustration, Google Shopping has agreed to make GTIN codes mandatory. According to Google, products including GTIN codes have a 40% higher CTR and generate 20% more sales.

Universal Product Code (UPC)

As you can guess from its name, this sort of code is used everywhere: on marketplaces, in online shops, and in brick-and-mortar stores.

The 12-digit Universal Product Code (UPC) is frequently used in the US, Canada, the UK, Australia, and other nations. It can be used for any type of item that your business offers, from electronics to apparel and foods.

How to obtain a UPC for your item? You need to register with GS1 and receive your company code prior to being able to obtain a UPC for your items. All of your items will have this prefix to help customers recognize you as the seller.

European Article Number (EAN)

The 13-digit European Article Number, or EAN for short, is a designation for the EU. Any UPC can be transformed into an EAN by adding a zero to the front, which makes this number obviously related to the UPC.

One product may be distinguished from another using both UPC and EAN codes. The characteristics of the items are described by these special numerals, which also serve as identifying markers. They can represent information such as:

  • The nature of the good
  • Cost, size, or color
  • Producing
  • Country code
  • Further product information

Japan Article Number (JAN)

Japan calls their version of the EAN standard the Japan Article Number (JAN). Because JAN begins with different numbers in Japan than in Europe, it is recognized worldwide.

Amazon Standard Identification Number (ASIN)

Amazon is a global retail marketplace with millions of daily transactions, which is why it is now necessary to have a special identifying number for each item sold there. So, as a merchant, you have two options: either you attach your goods to an existing ASIN, or you obtain permission from Amazon and obtain new ASINs. The Amazon corporation uses this unique 10-digit number to identify products.

Managing and tracking product listings on Amazon depends heavily on ASIN numbers. Putting the ISBN on your items will prevent counterfeiting, in addition to making it simpler for marketplace buyers to discover your products.

QR Codes and Modern Product Identification

In today’s digital retail landscape, QR codes and RFID tags are transforming how businesses manage, verify, and engage with products. Unlike traditional product codes like SKUs, EANs, or ISBNs, these digital product codes enable both retailers and customers to interact with products in real time.

QR codes can instantly direct users to product pages, promotional campaigns, or authenticity verification portals—making it easier to confirm product origin and details. RFID tags, meanwhile, allow automated inventory tracking and theft prevention through wireless scanning, providing real-time visibility across the supply chain.

Modern retailers now integrate these technologies into packaging, warehouses, and fulfillment systems to streamline operations and improve accuracy. For example, scanning a QR code on packaging can reveal detailed product guides, care instructions, or warranty information.

These innovations enhance customer trust, operational efficiency, and digital engagement, ultimately making it easier to track and manage goods internationally while strengthening brand transparency.

How to Obtain and Implement Product Codes

Implementing product codes like UPCs, EANs, and SKUs is essential for modern retailers who want to streamline operations and track inventory efficiently. Proper registration and setup ensure compliance with global standards, reducing errors and making it easier to manage stock both locally and internationally.

Registration Process and Costs

The first step in product code implementation is GS1 registration, the only official global authority issuing UPC and EANs. GS1 provides each business with a Company Prefix—a unique 6–10 digit identifier that forms the foundation of all product barcodes. Membership fees vary depending on company size and the number of codes needed, typically ranging from $100 to over $2,100 annually.

While some businesses consider third-party resellers, this practice carries significant risks. Non-GS1 barcodes can cause supply chain disruptions, rejection by major online marketplaces, and legal complications. Only GS1-issued codes guarantee universal acceptance and making it easier to track products across different systems.

For global retailers, international variations in export regulations and product labeling requirements mean companies must ensure regional compliance. For example, ISBNs (International Standard Book Numbers) are required for books, while EANs are used for consumer goods sold internationally.

Implementation Steps

Before assigning codes, conduct a pre-implementation analysis of your product catalog to determine how many SKUs you’ll need. Design a logical coding hierarchy that groups similar items and accommodates future expansion.

Next, integrate your codes into inventory management or POS systems, ensuring compatibility across all retail and distribution platforms. Many systems now automatically generate and update SKUs, making it easier for businesses to manage product variations.

For barcode printing, companies can choose between in-house production and professional printing services. High-quality printing prevents scanning errors and helps maintain efficiency in warehousing and retail operations.

Finally, perform code verification—a process that checks barcode readability and scanning accuracy. Regular quality control ensures that your product codes like EANs or UPCs function correctly throughout the supply chain, improving traceability and keeping track of goods at every stage from manufacturing to retail shelves.

A well-implemented coding system ultimately streamlines operations, enhances accuracy, and supports business scalability.

Business Benefits and Competitive Advantages

Implementing standardized product codes delivers measurable business value across multiple operational areas. From checkout counters to cross-border shipping, the product code benefits extend beyond identification—they drive operational efficiency and competitive advantages. Automated scanning accelerates transactions, reduces manual input errors, and streamlines data synchronization across systems, making it easier to manage large product catalogs.

Through sales analytics, businesses can monitor product performance, track demand fluctuations, and forecast inventory needs with precision. Within the supply chain, coded tracking enables better logistics coordination, recall management, and batch-level traceability—essential for safety-critical industries.

Using global identifiers also enhances market access, ensuring compatibility with major retailers and e-commerce platforms while improving customer experience by boosting product discoverability and transparency. Finally, standardized coding simplifies international trade, expediting customs clearance and documentation, which strengthens global competitiveness and ensures long-term growth.

Regulatory Compliance and Industry Standards

Adhering to regulatory compliance and industry standards is essential when implementing product codes. FDA product codes are mandatory for food, beverage, drug, and medical device labeling in the United States, ensuring safety and traceability. Similarly, sectors such as publishing use ISBNs as the international standard book identifier, while the automotive and pharmaceutical industries maintain specialized systems for component tracking.

Labeling requirements vary by region: the EU emphasizes packaging transparency, while Asia and North America enforce code placement and record-keeping guidelines for audit and compliance. Maintaining proper documentation and regular verification guarantees full code compliance, reducing legal risks and ensuring smooth entry into regulated markets.

Conclusion

Product codes are essential for the retail industry, where sellers need to manage thousands of items: they help track goods from the moment of production to the moment of selling. For any goods that you sell online, you will need to obtain product codes – this facilitates the process of distribution and pricing management. Just add your product codes to Priceva and use our price tracker to get real-time information about your and your competitors’ rates. It will be updated automatically, so there’s no need to scan prices manually.

FAQ

What is the purpose of a code?

A product code, also known as a product number, SKU (Stock Keeping Unit), or UPC (Universal Product Code), is a unique identifier assigned to a particular product or item. The purpose of a product code is to provide a standardized way to identify and track individual products throughout their lifecycle, from manufacturing to distribution to retail sales and beyond.

Why is a product code important?

Product codes help distributors and vendors quickly scan and identify goods at different stages of their lifecycle: production, storage, transportation, and selling.

How do I find a product code?

As a rule, product codes are found on packaging and labels. When it comes to your own goods, you should not create or search for product codes – they are assigned by authorized organizations. You can require one or more product codes, depending on the country in which your company conducts business. For instance, GS1 is the source of the UPC, the main code used in the US and Canada.

What does a product code look like?

SKU numbers are internal 8-digit inventory codes that are used within companies, while UPC codes are 12-digit barcodes for external use that can be scanned by any company.

Where is the product code on a package?

As a rule, product codes are printed on product packaging (box, bag, etc.), and may also be printed on the product itself (on its sides or back part).

How many digits is a product code?

The Universal Product Code (UPC) is a unique 12-digit number assigned to each individual product sold in stores and online. In the world of retail sales, there are primarily two barcode formats: UPC and EAN. The UPC format is 12 digits, while the EAN is 13. These two formats are typically used in their own regions: the UPC is used only in the US and Canada, while the EAN is used everywhere else globally.

The UPC-A is considered a standard version of the UPC and is the most commonly used code for point-of-sale transactions. This type of UPC is 12 digits long and utilizes the Global Trade Item Number (GTIN-12), a form of data. Companies that sell retail merchandise, such as privately owned goods that can be found exclusively at only one store, will use the UPC-A.

The UPC-E contains only 8 digits, but it also uses GTIN-12 data. These types of UPCs are mostly found on smaller goods that have compact packaging, such as candy and cosmetics.

Is a product code the same as a serial number?

An item of a product line is given a serial number, which is a sequential number. Only that one item will have a serial number. You may use it to monitor ownership and warranty details for that particular item. Pretty often, electrical appliances have serial numbers.

A serial number can be easily created for each product and printed internally in a contemporary WMS program (like the one provided by SmartB).

What happens if I use fake or duplicate product codes?

Using fake or duplicate product codes can lead to product delisting, rejection by major retailers, and even legal penalties. Marketplaces like Amazon and Walmart verify UPC or EAN authenticity through GS1 databases, and invalid codes can damage brand credibility and disrupt your supply chain.

Do I need different codes for each product variation?

Yes, each variation—such as color, size, or material—requires a unique product code. This ensures accurate tracking, inventory management, and performance analytics. Proper coding allows businesses to monitor which variations sell best and optimize pricing and stock accordingly.

What's the difference between SKUs and UPCs?

SKUs are internal identifiers created by a business to manage inventory, while UPCs are universal, standardized codes recognized internationally. SKUs can be customized for internal use, but UPCs are assigned through GS1 to ensure consistency across global retail systems.A serial number can be easily created for each product and printed internally in a contemporary WMS program (like the one provided by SmartB).

How can Priceva help with product code management and pricing optimization?

Priceva’s tools automate product tracking using unique identifiers like SKUs and UPCs, ensuring clean data and accurate price matching. With its pricing optimization engine, businesses can connect product codes to real-time competitor insights, enabling dynamic pricing strategies and enhanced profitability.

More to explore