UPC vs. SKU: What's the Difference?

The Two Halves of Retail

If you are setting up an online store (like Shopify) or preparing to sell physical goods to a distributor, you have likely been asked for both a UPC and a SKU.

While they both technically identify products, they are entirely different systems that serve different masters. One is for the world; the other is just for you.

The UPC: Universal and Global

A UPC (Universal Product Code) is a global, standardized 12-digit number permanently assigned to a product by the GS1 international registry.

The UPC for a specific can of Coca-Cola is exactly the same whether you scan it at a Walmart in Texas, a Target in New York, or a local gas station. It is a universal identifier that tells the cash register exactly what the product is.

The SKU: Internal and Specific

A SKU (Stock Keeping Unit), however, is a completely internal, alphanumeric string created by a specific retailer to track inventory within their own warehouse.

Because it is internal, Target's SKU for that exact same can of Coke will be completely different from Walmart's SKU. You generate your own SKUs (like TSHIRT-RED-MD) to organize your shelves. If you want to barcode your SKUs for your warehouse workers, you would print them using an alphanumeric format like Code 128, not a UPC.