What is the Difference Between Universal Product Code (UPC) and Stock Keeping Unit (SKU)?

The main difference between Universal Product Codes (UPCs) and Stock Keeping Units (SKUs) lies in their purpose and usage. Here are the key differences between the two:

• Purpose: SKUs are created internally for businesses to manage their inventory and track products, while UPCs are used externally for broad supply chain compatibility and are purchased and licensed by product manufacturers.
• Composition: SKUs have varying lengths made up of both letters and numbers, while UPCs always have 12 numbers. This difference in composition makes it easier for SKUs to be unique to individual retailers, whereas UPCs are universal and can be used to identify a product no matter who is selling it later on.
• Usage: SKUs are used for internal purposes, such as optimizing inventory management and making it easier to identify products within a store's inventory system. On the other hand, UPCs are used for external purposes, such as making selling products internationally easier by making them compatible with the supply chain. For this reason, online marketplaces on e-commerce platforms and major retailers require UPCs.

In summary, SKUs are internal codes used by retailers for inventory management, while UPCs are external codes used by manufacturers and retailers for product identification and tracking throughout the supply chain.

Comparative Table: Universal Product Code (UPC) vs Stock Keeping Unit (SKU)

Here is a table highlighting the differences between Universal Product Code (UPC) and Stock Keeping Unit (SKU):

UPC is a 12-digit code licensed by the product manufacturer from GS1 US, a nonprofit organization, and is a type of Global Trade Item Number (GTIN). SKU, on the other hand, is a unique alphanumeric code assigned to an individual product, created internally for businesses to optimize inventory management and make product tracking more efficient.