GS1 US has recently released a single quantity offering of it’s GTIN product identification codes, with the aim of making the GTIN product ID more accessible to small businesses and sellers with few product offerings. Historically, GTINs could only be purchased in quantities of 10 or more, and a Company Prefix needed to be licensed. The new offering allows customers to license a quantity of 1 to 10 GTINs, for a one time cost of $30.00 per GTIN.
Why Licensing GTINs is Important for Sellers on Amazon
When a new product is uploaded to the Amazon marketplace, Amazon requires that the product’s GTIN be submitted at upload. Also, when Amazon needs to validate changes of key product information they may require evidence of GTIN ownership/registration in the form of a Company Prefix Certificate. Amazon.com exclusively relies on the GS1 global data to validate the ownership and authenticity of product IDs on Amazon. Licensing a GTIN and using it to identify your product in the form of a UPC or EAN is critical to offer the product and to make it more discoverable for Amazon.com consumers.
Goat Consulting Interview with GS1 US
Goat Consulting had the opportunity of speaking with Michelle Covey, Vice President of Partnerships at GS1 US about the new single GTIN offering and its value for small businesses and Sellers on Amazon.com.
Question: Just to clarify the pricing, each GTIN purchased below a quantity of 10 will cost a one-time upfront fee of $30.00, so 1 would cost $30.00, 2 would cost $60.00, etc.?
Answer:
That is correct--the fee is $30 to license a single GS1 US GTIN. Businesses that require more than nine GTINs should instead opt for the traditional GS1 Company Prefix model, which is designed to help businesses manage a larger product line and scale their business. We are offering businesses this more flexible option to authentically identify their individual products in response to the explosion of e-commerce opportunities available today for generally first-time product launchers who are just getting started with product creation.
Question: There is no annual renewal fee for these GTINs when purchased under a quantity of 10? Does this mean that when the upfront fee is paid that GTIN will remain registered to the seller indefinitely without any future charges or costs?
Answer:
That is also correct, there are no annual renewal fees associated with the single GS1 US GTIN. That GTIN will remain registered to the Brand and cannot be reused for another product. Brands that license single GS1 US GTINs also have free access to GS1 US Data Hub, which is our online tool that businesses use to create and manage their own UPC barcodes and capture descriptive product information to share with retailer partners.
Question: Is a GS1 Company Prefix created for these individual GTIN customers?
Answer:
The company will receive a certificate that proves they are the licensee of that GS1 US GTIN, similar to the GS1 Company Prefix certificate. Again a single GS1 US GTIN is used to identify one individual product, whereas a GS1 Company Prefix can be licensed in different capacities that allow you to barcode as few as 10 unique products and as many as 100,000 unique products. Therefore, a single GTIN holder does not receive a GS1 Company Prefix. The Company Prefix model is more suitable for businesses with diverse product variations such as multiple flavors, colors, sizes, or styles that plan to scale their business. Also, some retailers may require the use of a Company Prefix as a foundation for their electronic data exchange (EDI) and supply chain visibility processes.
Question: What are the main benefits of the "Company Prefix route" that customers should be aware of?
Answer:
The GS1 Company Prefix is still incredibly beneficial for businesses who have aspirations beyond a single product launch. In addition to the main benefit of guaranteeing that only your company owns your unique GTINs and barcodes, it helps sellers manage their growth and diversify their business long term. The prefix allows members to create additional identifiers often used in retail supply chain business processes, such as the Serialized Shipping Container Code or GS1-label to identify cartons exchanged between trading partners. Also, the Company Prefix makes up the first few numbers of a product’s GTIN, which can help with inventory management and retailer relations. For instance, if a brand were to grow their business to the point where they have hundreds of GTINs to manage, the prefix helps the brand owner classify their inventory and manage where each GTINs are sold. They help companies manage mixed cases and coupons too, and some healthcare companies need a prefix to meet various FDA regulations.
Knowing which option is right for a business requires some serious thought and research. We have developed an estimator tool that provides guidance for businesses who don’t know if they should purchase a few single GTINs or opt for the Company Prefix.
Question: What would happen if a seller first bought the single quantity GTIN (without the Company Prefix Route) and down the road chooses to purchase a large quantity of GTINS (through the Company Prefix Route)? Will the newly acquired company prefix automatically apply to the previously purchased (and likely in use) single quantity GTINs?
The single GS1 US GTINs would still be licensed to that business regardless of whether or not they eventually license a GS1 Company Prefix. The single GTINs are issued independently from the GS1 Company Prefixes and would not become part of the prefix capacity that they license later--a GS1 Company Prefix would mean a fresh start. Both GTINs and prefixes would still be uniquely tied to that brand and it’s common for companies to license more than one prefix—some large multinational brands have hundreds of prefixes.
Key Take-Aways
GS1 US’s Sub 10 GTIN Offering is a Great Options for Small Businesses on Amazon.com
This new single quantity GTIN offering is a great value at a one-time cost for small businesses or sellers launching a single or a few products on Amazon.com. The smaller your catalog or product offering, the more important and vital each individual product is. Using a licensed GS1 US GTIN is the best way to give your product a platform for a successful launch and defend its identity in the Amazon marketplace.
It’s Easy to Get a Company Prefix as Your Business Grows
GS1 US makes it simple to increase your GS1 GTIN footprint as your business grows. After licensing more than 10 GTINs, your company can easily obtain a Company Prefix which will help the increasing amount of GTINs be more easily identified and managed by supply chains and retailers.
How to get license GTINs from GS1 US for your business
Use the GS1 US Barcode Estimator tool linked below to begin the GTIN licensing process and to help determine what quantity of barcodes best suits your businesses’ needs.
www.gs1us.org/upcs-barcodes-prefixes/get-a-barcode
Goat Consulting helps out clients manage and implement their product IDs in the Amazon marketplace. If you or your business have any questions regarding sourcing, applying, or managing product IDs in the Amazon marketplace contact us by clicking the button below.