Discover essential barcode types, formats, and retail applications. Learn how to use UPCs, GTINs, and SKUs to stay compliant and scale your business.
Whether you're running a small brick-and-mortar retail store or preparing to sell through major marketplaces, barcodes are a foundational element of trade. These codes form the bridge between your product data and retail systems, making it possible to track inventory, process sales, and move products efficiently through the supply chain.
There are a variety of barcode types, each with its unique use and purpose — from identifying a specific product wherever it is on the globe to tracking each flavor of gum on the store shelves.
For emerging brands entering retail, understanding barcode basics is essential to becoming retail-ready. This guide will walk you through the types of barcodes used in retail and e-commerce, how they’re applied across operations, and how to set your business up for success from day one.
Benefits of Using Barcodes
Barcodes can transform operations of any size, especially companies preparing to scale or enter retail. They make it possible to manage stock efficiently, track inventory movement in real time, and improve operational accuracy across the board.
Scanning a barcode is dramatically faster and more reliable than manual data entry. That speed benefits your team, but it also improves the customer experience by reducing errors at checkout and helping ensure shelves stay stocked with the right products.
Barcodes also provide a foundation for smarter business decisions. By tracking sales data tied to each product code or SKU, companies can identify which items move quickly, which locations need restocks, and which product characteristics drive demand.
For brands navigating retail onboarding, barcode systems also support trading partner compliance. Many major retailers and logistics providers require standardized codes like the universal product code (UPC) or global trade item number (GTIN) to ensure alignment across the supply chain. The result is cleaner data, fewer errors, and a retail operation that’s ready to scale.
Barcode Formats and Product Codes
To the untrained eye, barcodes may seem similar, but not all are created equal. While they all serve the same general purpose — capturing product information for easier tracking and scanning — each format has a different structure and use case. Understanding the difference between the three most commonly used types of barcodes can help ensure your inventory data is compliant and actionable.
Barcode Type | Purpose | Used By | Common Use Cases |
|---|---|---|---|
UPC | Identifies consumer products for retail sales | Retailers, marketplaces (Amazon, Walmart) | POS scanning, shelf labeling, product identification |
GTIN | Identifies trade items globally across supply chains | Global brands, distributors, logistics | Cross-border commerce, inventory systems, EDI compliance |
SKU | Internally tracks product variants like size or color | Retailers, brands, warehouses | Warehouse picking, product variant tracking, internal data management |
UPC Barcodes: The Universal Product Code
A UPC is one of the most recognized barcode formats to consumers. Designed for mass retail environments, UPC barcodes typically include a 12-digit numeric code and corresponding black bars of varying thickness. These codes are printed on nearly every consumer product sold in brick-and-mortar stores. In particular, U.S. retailers favor the UPC-A barcode format because it supports fast, consistent scanning at the point of sale.
Large online sellers, like Amazon and Walmart, often require UPCs to verify product authenticity and enable cross-platform consistency, while your team may also use internal SKUs for backend tracking.
GTIN Barcodes: Global Trade Item Numbers Explained
GTINs are internationally standardized codes used to identify trade items across supply chains. They serve as a global backbone for product identification, enabling retailers, distributors, and logistics providers to track products from origin to shelf with consistent data.
Depending on regional and product-specific requirements, GTINs can include 8, 12, 13, or 14 digits. Because of their flexibility and alignment with global standards, GTINs are essential for cross-border commerce, centralized inventory systems, and trading partner compliance.
SKU Systems: Internal Codes for Unique Product Tracking
A stock-keeping unit (SKU) is a unique alphanumeric code that businesses create internally to track product variants, such as size, color, or style. Unlike UPCs or GTINs, a stock-keeping unit code isn't standardized across sellers. Companies internally create SKUs, and no two are required to use the same code or format. The exact same product could have a completely different SKU at one seller than it does at another.
An effective SKU system allows teams to monitor specific product characteristics, optimize warehouse layout, and make faster inventory decisions. While SKUs aren’t typically visible to the customer, SKU data is critical for internal organization and inventory management.
Everyday Barcode Applications in Retail and E-Commerce
Barcodes play a behind-the-scenes role in nearly every aspect of modern commerce. They provide accurate and actionable data from warehouse receiving to checkout and post-sale analytics. For businesses entering retail or trying to expand operations, understanding how and where barcodes fit into daily workflows will help ensure smoother transitions and fewer growing pains.
Inventory Management
Inventory management is one of the most critical areas where barcodes make a difference. By scanning barcodes at every touchpoint — from shipping to receiving to restocking — businesses can track inventory in real time, reduce manual errors, and maintain optimal stock levels.
Barcodes also enable better inventory visibility, helping you avoid over-ordering or experiencing stockouts. When paired with the right inventory management system, barcode data supports forecasting, demand planning, and smarter stock rotation.
Point of Sale (POS) System
Barcodes streamline checkout operations in both physical stores and pop-up retail setups. Scanning a barcode at the point of sale instantly pulls up product details and updates stock counts in the background, reducing pricing errors.
Many POS systems synchronize directly with inventory tools, making it easier to reconcile what's been sold with what remains in stock. This provides a faster, more reliable checkout experience for customers and cleaner data for your business.
E-Commerce
In e-commerce, barcodes connect digital listings to physical inventory. Each product in your online store corresponds to a unique code, which enables faster picking, packing, and shipping.
Whether you're fulfilling in-house or using a third-party logistics (3PL) provider, barcodes help ensure each item is accurately selected and tracked through the fulfillment process. You can also use barcode data to analyze order trends and optimize stock placement in warehouses.
Customer Satisfaction
Barcodes quietly improve the consumer experience in several ways. At checkout, they reduce delays by ensuring faster scans and fewer errors. Behind the scenes, they help businesses keep popular items in stock and maintain pricing accuracy.
Some brands also use barcodes creatively, such as enabling customers to scan items in-store for product details, reviews, or availability in other sizes. When used strategically, barcodes don’t just streamline operations. They give customers a smoother, more personalized shopping experience.
Best Practices for Barcode Use
Getting the most out of your barcode system means going beyond just sticking labels on boxes. A few small practices can make a big difference in accuracy, efficiency, and partner compliance, whether you're selling through a marketplace, a 3PL, or direct to stores.
Use high-quality barcode labels: Smudged or damaged labels can cause scan failures, disrupt inventory tracking, and delay shipments.
Ensure consistent scanning across systems: From warehouse scanners to POS terminals, test barcode readability regularly.
Standardize your barcode format internally: Whether you’re creating SKUs or mapping to external product codes, consistency helps avoid data mismatches.
Incorporate check digit verification: Many barcodes include a final digit that helps detect input errors during scanning. This simple built-in safeguard ensures more reliable data transmission.
Keep your data clean and synchronized: Regularly audit barcode information to catch inconsistencies and meet partner or retailer expectations.
Many retailers and logistics providers rely on EDI systems to process barcode data. Orderful’s web EDI fulfillment platform helps ensure your product codes meet formatting and compliance standards, so you can avoid chargebacks, delays, or rejected shipments.
Staying Retail-Ready with the Right Barcode Strategy
Barcodes may seem like a small detail, but they carry a big responsibility. From supply chain logistics to customer experience, the codes you choose and how you manage them can influence nearly every part of your retail operation.
Whether you're selling in stores, online, or through a fulfillment partner, a well-structured barcode system ensures your inventory stays visible, organized, and compliant with trading partner requirements. That’s especially important as you begin working with larger retailers or logistics providers that rely on standardized data to process orders.
Orderful helps streamline that transition. With built-in formatting validation, simplified onboarding, and full support for web EDI fulfillment, our platform keeps your product codes aligned with trading partner requirements from the start.
Talk to an EDI expert today to start building cleaner, more efficient supply chain workflows.
