This is a question that we frequently get from designers, so I figured you would benefit from the answer as well.
Q. What is the skinny on bar/UPC codes? And do I need to have that on my products/hangtags?
A. To answer the question, first, let me explain what a UPC code is and why it is used.
A UPC, Universal Product Code, is a bar code that encodes product information (company, product style, size, color, etc.) in a visual pattern that can be read electronically. For example, retailers with an electronic point of sale system at the checkout use UPCs to keep track of their stock, sales and reorder products by scanning the bar code.
There are 2 formats of UPC codes:
Dimension (linear) code – Black lines with white spaces in between which are for the machines to "read" and an x-digit (usually 12). These are usually seen in products you buy in the supermarket or department stores. To find out more about how it works, read this.
Dimension code – A square pixelated image usually is seen on movie tickets etc.
How to obtain a UPC code: Only GS1 US can issue your company a globally unique "GS1 Company Prefix" that is used to create UPC numbers. This expense depends on the number of products that you are looking to code and is a combination of an initial fee + annual renewal fee. It can get pricey for a new line. Check the prices here.
Do you need a UPC code?
Now that we know all this, let's examine if you need to obtain a UPC for your fashion products.
The main determinant is how you plan on selling and distributing your product:
If you are selling products directly to customers (on your website, private events, etc.) and shipping yourself (as opposed to using a fulfillment center), then you don't need it. NOTE: If you are looking to sell through Amazon, Amazon does require you to have UPC codes.
If you are selling wholesale to small boutiques – chances are, you can still get away without needing it (unless they specifically ask for it, you don't require to offer it).
If you are selling to a big retailer/distributor such as a big department store or any major national retailer, you will most likely need to have UPC codes; HOWEVER, check with the retailer first if required. Major retailers will provide you with their shipping guide along with their order where this info will be included, or if it's not specified, you can always ask your buyer.
If you are using a fulfillment center to receive and ship out your products (regardless of whether you sell DTC or to retailers), the fulfillment center will need that cause it helps them scan products in and out, but the good news is that they always provide these for you. They will supply you with the files to print out, and you can then have your factory print them out on stickers and add them to your products (sometimes they can also print them out for you if your factory is local and can't do that, and for a fee, they can also add them for you when they receive the products if your factory can't). Usually, these stickers will be put on the hangtags or the poly bags...or both.