UPC, SKU, GTIN, understanding Acronyms

Like everything else in business, small business owners have many opportunities to learn. Today was one of those days.

Based on where my business is heading I have arrived at the time when I needed to investigate getting product identification codes. This allows me to break into the major retail markets and advance my business from an independent retailer. Exciting, yes, scary of course! Here's what I learned. Initially I thought I needed SKU's or stock-keeping units. Each product revision whether it be fabric covering, color, or size constitutes the need for a unique code. After searching Google, I quickly learned that I didn't need SKU’s; I needed UPC or Uniform Product Codes which are made up of twelve digits which are called GTIN or Global Trade Item Numbers.

The first 9 digits of this code, for the first 100 codes will contain the same number which is assigned through a membership certificate issued by the UCC (Uniform Code Council) or GS1 US as they are called today. You must first fill out an application and pay the associated fees to acquire your UPC numbers. This generally takes 1 business day, and the membership kit can be expedited if you are in a hurry. Fees are based on your annual gross revenue (sales) figures as well as the number of individual SKU’s that you require. The SKU is actually the tenth and eleventh digit of the total GTIN identification. Regardless of whether you need 1 or 100, the fees are the same, but once you’ve crossed the 100 code requirement fees will increase because you will be assigned a new nine digit identifier.

There is only one website where you can acquire a membership certificate that assigns your unique number and that is http://www.gs1us.org/. Once your fees are calculated you will see how much your initial cost will be. They will also inform you of what your annual renewal fee will be based on your original order. The renewal fee will be less than the initial cost unless you increase your need for UPC numbers.

If you are in need of UPC codes for your products/business, the application process is easy, but plan ahead, the minimum fee you can expect to pay is $760. Use this cost with caution, like anything else fees increase so the only way to truly know your cost is to fill out an application. The resource information I read indicated $500 and was published in 2007.