Inventory Guide

SKU vs UPC: What Is the Difference?

Last updated: July 27, 2026

Quick answer

A SKU is an internal code a business creates to track its own inventory, so it differs from seller to seller. A UPC is the universal 12-digit barcode, licensed through GS1, that identifies the product itself everywhere it is sold. In short: SKUs are yours, UPCs are the product's.

SKU vs UPC vs FNSKU at a glance

SKUUPCFNSKU
Who creates itYou (the seller)GS1 (licensed to the brand)Amazon
FormatAlphanumeric, any length you choose12-digit numeric barcodeAmazon code starting with X0 or B0
ScopeInternal to one businessUniversal across retailersInside Amazon fulfillment centers
PurposeInventory tracking and pickingProduct identification at checkoutTies a unit to a specific FBA seller

What is a SKU?

A SKU (stock keeping unit) is the code you invent to track a sellable item in your own systems. Good SKUs encode meaning, for example HOOD-BLK-M for a black hoodie in medium. Every variant gets its own SKU, which is what a warehouse actually picks against. Well-structured SKUs are the backbone of accurate inventory management.

What is a UPC?

A UPC (universal product code) is the familiar 12-digit barcode scanned at retail checkout. UPCs are licensed through GS1, the global standards body, so a given product carries the same UPC no matter who sells it. The number under the bars is the GTIN-12. If you plan to sell into retail or on major marketplaces, budget for GS1-licensed UPCs per variant.

Where the FNSKU fits in

Amazon adds a third identifier: the FNSKU, its internal code that maps a physical unit to a specific seller inside FBA. Most FBA shipments need an FNSKU label applied so units scan correctly at Amazon receiving. Applying FNSKU labels correctly (and covering the existing barcode when required) is a standard part of Amazon FBA prep.

When you need each one

  • Selling only on your own site: SKUs are enough.
  • Selling on marketplaces or into retail: SKUs for your operations plus GS1-licensed UPCs for the products.
  • Selling via Amazon FBA: all of the above plus FNSKU labels on the units you send in.

A 3PL keeps these identifiers straight for you: RitePrep picks against your SKUs, ships retail orders with the right UPC-labeled cartons, and preps FNSKU labels for FBA, all from one Austin warehouse.

Frequently asked questions

What is the difference between a SKU and a UPC?

A SKU (stock keeping unit) is an internal code a business creates to track its own inventory, so the same product has different SKUs at different retailers. A UPC (universal product code) is a standardized 12-digit barcode licensed through GS1 that identifies the product itself, the same everywhere it is sold.

What does UPC stand for?

UPC stands for universal product code. It is the 12-digit numeric barcode used at retail checkout across North America, with the number underneath called the GTIN-12.

Do I need a UPC for my product?

If you sell through major retailers or marketplaces, usually yes. Most retailers and platforms like Amazon expect a GS1-licensed UPC (or another GTIN) to list a product. If you only sell on your own site, you can operate with SKUs alone.

What is an FNSKU?

An FNSKU is Amazon's own product identifier, used inside Amazon fulfillment centers to tie a unit to a specific seller. Products sent to FBA usually need an FNSKU label applied over or alongside the UPC, which is a standard part of FBA prep.

Can two products have the same SKU?

Within one company, no: each variant (size, color, flavor) should have its own unique SKU. Across different companies, yes: SKUs are internal, so two businesses can coincidentally use the same code for different products. That is exactly why UPCs exist.

Looking for a 3PL you can actually reach?

RitePrep Fulfillment runs its own Austin, Texas warehouse for CPG and DTC brands: pick and pack, Amazon FBA prep, kitting, and returns, shipped nationwide. Get a quote built around your real numbers.