What is a GTIN (Global Trade Item Number)?
GTIN, or Global Trade Item Number, is a unique identification code assigned to a product that makes it trackable across the supply chain. It allows suppliers, manufacturers, retailers, and customers to identify and track a product with ease. GTIN is also a critical element of e-commerce, where millions of products are bought and sold worldwide every day, and accurate product identification is essential for smooth transactions and customer satisfaction.
The Importance of GTIN in E-Commerce
E-commerce platforms enable businesses to trade beyond geographical boundaries and reach a global audience. However, the success of e-commerce transactions depends on the accurate identification of products, which is why the use of GTIN is standard practice. When a product is added to an online store, it must have a unique GTIN to distinguish it from other products of the same type. This ensures that the product is easily found by search engines and customers, and helps avoid potential data entry errors.
Furthermore, having an accurate and unique GTIN not only ensures the correct product is listed but also guarantees that the product is delivered right to the customer's doorstep. This prevents delivery errors, returned packages, and negative reviews that can harm a business's reputation. Understanding the various types of GTINs and their potential impact on your business is essential.
One of the most common types of GTINs is the Universal Product Code (UPC), a 12-digit number used primarily in North America. Other regions may use different types of GTINs, such as the European Article Number (EAN) or the Japanese Article Number (JAN). It's important to understand which type of GTIN is required for your product's target market to ensure compliance with local regulations and standards.
Additionally, GTINs can provide valuable insights into consumer behavior and product performance. By tracking GTINs, businesses can analyze sales data, identify popular products, and make informed decisions about inventory management and marketing strategies. Therefore, implementing a robust GTIN system can not only improve the efficiency of e-commerce transactions but also provide valuable business intelligence.
Different Types of GTINs and Their Uses
There are five types of GTINs: GTIN-12, GTIN-13, GTIN-14, GTIN-8, and GTIN-128. The most commonly used is GTIN-12, which is the 12-digit Universal Product Code (UPC) that businesses typically see printed on product packaging, making it easy to scan at checkout. GTIN-13 is the European Article Number (EAN) and is similar to UPC but has 13 digits. GTIN-14 is used primarily in logistics and supply chain management, featuring the same structure as EAN and UPC but with an additional digit.
GTIN-8 is used for small products such as individual trading cards, where there is minimal space for a barcode, and GTIN-128 is a GS1-standard format used for generating barcode rules for labels. Each of these codes serves a different purpose in product identification and helps businesses accurately track the flow of products in the supply chain.
GTINs are not only used for product identification but also for tracking and managing inventory. By using GTINs, businesses can monitor stock levels and ensure they have enough products to meet customer demand. This is especially important for businesses that sell products online, as accurate inventory levels help avoid overselling or underselling.
In addition to inventory management, GTINs can also be used for product authentication and anti-counterfeiting measures. By using unique GTINs for each product, businesses can verify the authenticity of their products and prevent counterfeit items from entering the market. This is particularly important for high-value products such as luxury goods and pharmaceuticals, where counterfeit products can pose significant risks to consumers.
How to Obtain a GTIN for Your Product
Suppliers and manufacturers can obtain a GTIN by registering with a GS1 Member Organization, a nonprofit organization that assigns and manages a company's identifier numbers. Once registered, a business can apply for a unique range of numbers to identify its products and create barcodes using those numbers.
It's essential to note that each product requires a unique GTIN, meaning businesses need to apply for a new number range for each product they sell. While the process may seem daunting, obtaining accurate and unique GTINs is critical to ensure compliance in the supply chain and e-commerce marketplaces.
The Role of GTIN in Supply Chain Management
GTIN plays a critical role in supply chain management by providing an accurate, unique, and consistent way of identifying products. A product's GTIN remains the same as it moves through the supply chain from manufacturer to distributor and finally to the retail store or online marketplace.
The use of GTINs in the supply chain also helps prevent counterfeiting, gray market trading, and product diversion. By monitoring the use of GTINs throughout the supply chain, businesses can ensure authenticity, reduce risks, and maintain product quality.
The Benefits of Using GTIN in Retail and Wholesale Industry
The retail and wholesale industry benefits greatly from using GTINs to improve inventory management, accelerate sales, and reduce errors. With the demand for faster delivery and accurate product identification, GTINs help businesses operate efficiently and fulfill customer orders quickly.
An accurate GTIN also improves product traceability, manages product recalls, and streamlines the handling of product returns. This results in lower operating costs, higher efficiency, and better customer satisfaction.
How to Verify GTINs to Ensure Their Authenticity
Verifying the authenticity of a product's GTIN involves confirming that the code belongs to an authentic and registered business. The easiest way for a retailer to check the validity of a GTIN is by using GS1's GEPIR (Global Electronic Party Information Registry), which helps identify and verify GTINs assigned by GS1 Member Organizations.
However, verifying a GTIN typically requires automated scanning systems. It's essential to use codes that are scannable by industry-standard scanning equipment, such as those produced by GS1. Scanning helps businesses avoid fraudulent products and ensures a seamless flow through the supply chain.
GTIN and UPC: Understanding the Difference
One common misconception is that GTIN and UPC refer to the same code. While a UPC is a type of GTIN, the two identifications have slight differences. UPC is a 12-digit code used mainly in North America, while EAN is a 13-digit number used internationally.
Despite these minor differences, UPC and EAN work similarly. They are used to classify and track products, making them essential for businesses that wish to trade in the competitive global marketplace.
The Impact of GTIN on Product Visibility and Sales
Listing a product with a GTIN increases the likelihood of the product appearing on search engines or e-commerce sites, enhancing its visibility. Studies have shown that products with proper GTIN codes achieve higher search result rankings on marketplaces such as Amazon or Google compared to products without a GTIN.
However, product visibility is only half the story. Having a unique GTIN helps track products and analyze their sales data, enabling insight-driven business decisions. The data-driven approach to product management has become a norm in the retail industry, and GTIN plays a significant role in helping businesses gain valuable insights.
GTIN and SEO: How It Affects Your Online Store Ranking
SEO, or search engine optimization, is a powerful tool that businesses use to generate traffic to their websites. Having accurate GTIN codes for products is critical to SEO. Search engines use GTIN codes to identify, categorize, and rank products, thereby improving a company's online visibility and driving sales.
Accurate and unique GTINs also help avoid creating duplicate content, which may negatively affect search results. Therefore, it's critical to ensure that every product has a distinct GTIN correctly assigned to that product.
Best Practices for Using GTINs in Product Listings on Marketplaces
Marketplaces are increasingly becoming essential channels for e-commerce businesses, making it critical to use GTINs for product listings. Equally important is following marketplaces' GTIN guidelines for accurate product identification, management, and promotion.
For instance, Google Shopping requires businesses to provide a valid GTIN for all products that have one. Amazon, on the other hand, requires a GTIN only for specific categories of products. Therefore, it's essential to familiarize yourself with the GTIN guidelines issued by each marketplace to avoid listing errors and improve your products' visibility.
The Future of GTIN: Trends and Developments to Watch Out For
The demand for accurate product identification and management will continue to rise as e-commerce grows. In response to this growth, GS1, the global organization that assigns GTINs, has started developing the next generation of identification codes—GS1 Digital Link.
GS1 Digital Link aims to provide businesses with a flexible way to adapt to customer needs, changing market conditions, and new technologies. It will also allow manufacturers to include additional information about their products, such as sustainability credentials, through the barcode. In the future, GTINs are expected to continue evolving and growing in importance as businesses adapt to new market trends and technologies.
Common Misconceptions about GTINs and Debunking Them
One of the most common misconceptions is that GTINs indicate product quality; however, their primary function is to identify and manage products throughout the supply chain. Similarly, some businesses mistakenly assume that GTINs are the same as manufacturing part numbers and use the same numbering system.
Other misconceptions include the belief that GTINs only apply to physical products and not digital goods. However, digital products, such as eBooks or music files, can also have GTINs, making them easily distinguishable from other products.
Case Studies: Companies that Successfully Implemented GTIN for Their Business Growth
Many companies have implemented GTINs and experienced significant business growth. For instance, Procter & Gamble (P&G), a multinational consumer goods company, used unique GTINs to improve its supply chain management, resulting in savings of over $1 billion in less than two years.
In another example, PureGym, the UK's largest gym chain, implemented GTINs to track inventory and increase the accuracy of stock management across all their locations. This led to a 1% boost in their gross profit margin and improved overall performance.
How to Leverage GTINs to Expand Your Reach in International Markets
GTINs are crucial in international trade and are required for products sold or distributed worldwide. A single GTIN enables businesses to sell their products globally, provided the products comply with the countries' regulations.
However, businesses must ensure that their GTINs comply with specific country requirements. For example, countries such as Brazil, India, and China require businesses to register their products with local regulatory bodies and obtain specific GTINs for selling products within the country's borders.
Conclusion
GTINs are crucial elements for businesses to trade in a competitive global marketplace. They improve product identification and management across the supply chain, help avoid counterfeiting, gray-market trading, and product diversion, and enhance the accuracy of product information for customers.
With the future of e-commerce looking promising, it's essential to understand the various types of GTINs and how they impact your business. Implementing best practices for GTIN usage in product listings, supply chain management, and sales is vital to ensure successful sales growth and customer satisfaction. GTINs are not just numbers; they're an integral part of a business's growth and success.
