SKU Vs. UPC: What is the Difference?
FAQs
Understanding SKU vs UPC: What's the Difference?
SKU and UPC numbers uniquely identify products, but they serve different business purposes. This guide examines how SKUs and UPCs differ and the pros and cons of each system.
What is the difference between a SKU and UPC number?
A SKU (stock keeping unit) number is an internal tracking code used by businesses for inventory management. A UPC (Universal Product Code) barcode is used to scan products at retail checkout. While SKUs use alphanumeric codes, UPCs are 12-digit barcodes.
When should you use SKU numbers?
SKU numbers are ideal for ecommerce companies, warehouses, fulfillment centers and other businesses that need to closely track inventory quantities, sales data and order processing.
When should you use UPC numbers?
UPC barcodes are required for selling products through major retail chains like Amazon, Walmart or Target. They allow retailers to quickly scan products during checkout.
Can SKU numbers be changed?
Yes, SKU numbers are customizable codes that businesses generate to organize their product catalog. They can be modified as needed when adding, removing or updating inventory items.
Can UPC numbers be changed?
No, UPC numbers are permanently assigned to retail products and cannot easily be altered once created. New codes must be applied for through the manufacturer.
What are the benefits of SKU numbers?
SKUs improve internal inventory tracking accuracy, reduce shipping errors, optimize catalog management, and enhance sales analysis and forecasting.
What are the downsides of UPC numbers?
Potential UPC disadvantages include requiring high-quality barcode printing on all packaging and going through a lengthy application process to acquire new UPC codes.
