In the fast-paced world of eCommerce, thousands of items are added, tracked, and shipped daily. This entire process requires proper planning and the combined effort of several stakeholders.

However, while managing inventory, it can be challenging to identify products when locating shipments, creating product listings, and delivering them to the customers’ doorsteps if there are no means to specify these products.

This is where product identifiers come into play.

Product identifiers help each product get a unique identification number. This helps streamline operations and ensure proper handholding by each department and warehouse. These identifiers reduce errors in order processing and safely ship the correct orders to the customers. 

Be it the online store, the shipping company, or even regulators, product identifiers help facilitate global trade of all sizes, including Shopify, Amazon, Etsy, and more.

To understand these terminologies better and how product identifiers work, let’s dive deeper and look at how to use them effectively.

Understanding Product Identifiers

When customers place an order, a lot happens behind the scenes. Sometimes, products may get lost, or orders go unfulfilled. Accurately managing stock levels becomes a hassle, which can affect sales opportunities and cause customers to be dissatisfied with your service.

To manage this chaos, global eCommerce companies use product identifiers, which are unique codes that help identify products. 

Product identifiers are of several types, including:

Stock Keeping Units (SKU)

A Stock Keeping Unit (SKU) is a unique alphanumeric code assigned by a business to each distinct product variation within its inventory. It is used to identify products in an inventory, allowing for precise identification and tracking throughout the supply chain.

Barcodes

Barcodes are machine-readable representations of data encoded in a series of lines and spaces. They allow for quick and efficient product identification and tracking of a product in the supply chain. Here are some common barcode types used for product identifiers:

Universal Product Code (UPC):
This common barcode is widely used in North America to identify many retail products.

European Article Number (EAN):

Similar to the UPC, the EAN is the predominant identifier used in Europe and other regions. Both function essentially the same way, ensuring accurate product identification across borders.

Note: To obtain UPC and EAN, you need to register with organizations like GS1 that will issue you unique codes for your products.

Global Trade Item Number (GTIN):

 GTIN is a 12-digit alphanumeric code that is used to identify a particular product and doesn’t change from manufacturer to distributor to storefront.

For example, if you are searching for a particular cereal box on Google but cannot find it using the brand name, you can use the GTIN on the box (00038000063534 for Kellogg’s Front Loops) in your Google search and find the right items instantly.

International Standard Book Number (ISBN): 

This unique identifier is assigned explicitly to books and audiobooks. It allows libraries, retailers, and distributors to track and manage these specific products easily. For example, every edition of a Harry Potter book would have its own unique ISBN, allowing libraries to keep track of their inventory and ensure patrons can easily find the specific version they’re looking for.

Amazon Standard Identification Number (ASIN): 

The ASIN is exclusive to Amazon’s marketplace. It acts as a unique product code within their platform, simplifying product listing and order fulfillment for Amazon sellers. For instance, if you’re selling on Amazon, the ASIN code would be used to identify your listing and ensure your product reaches the right customer when they place an order.

The Role of Product Identifiers in E-commerce and Retail

Product identifiers do not just add a unique way to identify your product; they can be used in several ways, including:

1. Inventory Management and Tracking

Product identifiers also help with inventory management. Since the online shopping industry depends on demand and supply mechanisms, product identifiers like SKU help warehouses understand:

  • Which product is getting sold out faster?
  • How much quantity is estimated for this product?
  • How much is left in the warehouse?

This helps ensure effective inventory management and reduces the chances of the item going out of stock or being overstocked, improving profitability. 

2. Enhancing Online Visibility and SEO

Product identifiers aren’t just for internal use; they’re crucial for online visibility. Adding these identifiers play a major role in your eCommerce marketing strategy as they can boost the visibility of specific products and give search engines and online marketplaces a cheat sheet by helping in categorizing them accurately, and improving your search ranking. This translates to increased organic traffic to your store.

3. Facilitating Global Trade

Standardized product identifiers like EANs or GTIN help eliminate confusion in an international market.

For example, a standardized GTIN can help US companies ship products to Japan, allowing them to expand globally.

The Impact of Product Identifiers on Consumer Experience

Product identifiers aren’t just beneficial for businesses. They play a crucial role in building trust and empowering informed decisions for consumers. Here’s how:

1. Trust and Verification

According to estimates, $48 billion was lost due to eCommerce fraud in 2023, so customers are cautious about where they shop. Product identifiers act as a layer of security.

Consumers can often verify the authenticity of a product using online tools by searching for the identifier code. This instills confidence in them, knowing they’re purchasing the genuine article.

2. Helps in Decision-Making

Product identifiers simplify finding the same item on various websites. For instance, by searching for a specific wireless speaker’s UPC code, you can compare prices and deals across multiple online stores.

Product Identifiers and Shopify: Enhancing E-commerce Efficiency

Let’s see how product identifiers help enhance efficiency of your Shopify store: 

1. The Role of Product Identifiers on Shopify

For Shopify merchants, product identifiers are like a secret weapon in their arsenal, optimizing their stores for success. Let’s explore how Shopify integrates with these identifiers:

Shopify uses Product ID as a unique identifier, syncing the item from Shopify to ERPNext, the system that validates item names. In case you want to use your own unique identifiers with your Shopify store, you can do this in the following ways:

  1. During Product Setup: When adding a new product, include the relevant identifier (UPC, EAN, ISBN, etc.) in the designated field during setup.
  2. CSV Import: If you’re uploading products in bulk using a CSV file, ensure a dedicated column includes the corresponding product identifiers for each item.

2. Importance for Shopify Merchants

Product identifiers provide significant benefits for Shopify businesses, which include:

  • Improved Conversion Rate: Well-optimized product listings with unique identifiers enable customers to easily find the product they need, helping drive higher conversion rates.
  • Reduced Operational Costs: Since products can be easily tracked, it leads to efficient inventory management and streamlined order fulfillment processes.
  • Increased Visibility: Like any popular online marketplace, Shopify is full of business listings for similar products. By including product identifiers, you can reach a wider audience and improve your visibility, boosting sales potential.

For eCommerce businesses on Shopify, specialized solutions like AdNabu’s Shopping Feed management platform help identify the barcode of any product in Shopify and push the accurate identifier (GTIN or SKUs) into Google Merchant Center. The app follows standard Google policies to avoid product disapprovals. 

Addressing Challenges with Product Identifiers

Two main challenges to consider are counterfeiting and data accuracy. While these can wreak havoc on any online business, they can be controlled using proactive steps.

Let us start with addressing the issue of counterfeiting.

  • Radio Frequency Identification (RFID): These tiny chips embedded in products emit radio waves, allowing real-time tracking and verification throughout the supply chain. These can be read from a distance, making them ideal for tracking large quantities of products and identifying inconsistencies.
  • Using Blockchain: Blockchain can be leveraged to store all product identifiers and transactions. Since they cannot be tampered with, they expose any attempts to introduce counterfeit goods and make it easy for consumers to find the products they need. 

For product identification, data accuracy is everything. Some of the ways this can be minimized is by using measures such as:

  • Standardization: Ensure all product identifiers follow the correct format and adhere to relevant standards (e.g., UPC vs. EAN).
  • Centralized Database: Maintain a central database to store all product identifier information, including SKUs and descriptions.
  • Regular Audits: Schedule regular audits to check for any inconsistencies or errors in your product identifier data.
  • Data Validation Tools: Consider using data validation tools to ensure the accuracy of product identifier information before publishing listings.

Conclusion

Product identifiers are the cheat codes that unlock a smoother-running business. They help you track inventory, reach more customers, and build trust with accurate data – all key ingredients for e-commerce success!

FAQs

What types of product identifiers are most commonly used in e-commerce?

The most commonly used product identifiers in e-commerce include UPC (Universal Product Code), EAN (European Article Number), and ISBN (International Standard Book Number), each suited for different types of products.

Are product identifiers required for selling on Shopify?

While not mandatory for all products, product identifiers are highly recommended, especially for stores looking to distribute through Google Shopping or other online marketplaces. They significantly enhance product visibility and discoverability.

How can I find or generate product identifiers for my products?

If your products already have identifiers like UPCs or ISBNs, you can usually find them on the product packaging or by contacting the manufacturer. For products without identifiers, you can purchase UPC codes from GS1 or use other services to generate valid identifiers.

Can I sell products without identifiers on Shopify?

Yes, you can sell products without identifiers on Shopify, but having them can improve product visibility on external platforms and search engines, aiding in new customer acquisition.

Are product identifiers necessary for all online products?

While not mandatory for all products, product identifiers are strongly recommended to better integrate with online marketplaces and search engines and facilitate smoother supply chain management.

How can I obtain or generate product identifiers for my products?

Product identifiers are found obtained from the manufacturer. If you need to generate new identifiers, you can purchase them from GS1, the organization responsible for issuing unique product codes.

Is it possible to sell products online without product identifiers?

Yes, it’s possible, but including product identifiers can significantly enhance your products’ visibility on major online platforms and search engines.

What role do product identifiers play in international e-commerce?

Product identifiers help standardize product listings across different countries, simplifying the process of selling and shipping products internationally by ensuring compliance with global retail and trade standards.

 

 

Author

Hey there! I'm a SaaS-based content writer & specialize in writing technical & eCommerce blogs. I know the nitty-gritty of Shopify & selling on marketplaces like Instagram, Snapchat, Facebook & more. When I am not writing, I indulge in cooking & traveling!