Retail
UPC vs. SKU: What's the Difference?
It's one of the most common questions in retail and inventory management. This guide clears up the confusion between these two critical codes.
People often use "UPC" and "SKU" interchangeably, but they serve two completely different purposes. Understanding the difference is essential for anyone who sells or manages products.
What is a UPC (Universal Product Code)?
A **UPC** is a **universal** barcode for **external** use.
- Universal: The same product has the same UPC no matter who sells it. A can of Coke has the same UPC at Walmart as it does at a corner store.
- Standardized: UPCs are 12-digit, numeric codes licensed from a central organization (GS1).
- Purpose: To identify a specific product for retail checkout and tracking across different companies.
What is an SKU (Stock Keeping Unit)?
An **SKU** is an **internal** code for **internal** use.
- Internal: Each business creates its own unique SKU system. A red, medium t-shirt will have a different SKU at Gap than it does at H&M.
- Customizable: SKUs are alphanumeric and can be designed to be human-readable (e.g., `TS-RED-MED-001`).
- Purpose: To track inventory. SKUs help you manage stock levels, identify variations (like size and color), and analyze sales within your own business.
Summary: UPC vs. SKU
| Feature | UPC | SKU |
|---|---|---|
| Use | External (selling) | Internal (inventory) |
| Uniqueness | Universal | Unique to your business |
| Format | 12-digit numeric | Alphanumeric (your choice) |
| Purpose | Identify a product for checkout | Track inventory attributes (size, color) |
In short: **You scan a UPC at the register. You use an SKU to know how many you have left in the back.** A successful business needs both.