What is the difference between SKU and UPC?
Many barcodes contain a UPC and a SKU code. These acronyms are often used interchangeably, but there are key differences.
A universal product code (UPC) is issued by the Global Standards Organization. The UPC consists of two parts: a 12-digit number and a machine-readable barcode (like the ones we mentioned earlier). The UPC identifies the manufacturer and the item—it remains the same, no matter which retailer is selling it.
On the other hand, a SKU code is unique to the individual retailer who sells the product. SKU codes are 8-12 digit alphanumeric sequences. Companies create their own SKU codes to provide information about a product’s price, size, color, or any other characteristics the retailer wants to include.
Take a national coffee brand for example—every bag, regardless of the store that sells it, will have the same 12-digit UPC. However, individual retailers may assign a unique SKU for detailed inventory tracking.
Now that you have a grip on what barcodes are, the next question is: why does your business need them?