What Are Product Identifiers? A Comprehensive Guide for E-Commerce Businesses

Precision matters in e-commerce. With thousands of similar products competing for visibility, ensuring your items are easily searchable and correctly categorized is crucial. That is where product identifiers can help. These digital fingerprints can distinguish one item from another, ensuring seamless transactions and a smoother shopping experience.

What Are Product Identifiers?

Product identifiers are unique codes assigned to products that help them distinguish each other from similar items in e-commerce marketplaces and inventory systems. They act as universal labels that enable businesses, search engines and online marketplaces to categorize and track products.

There are several types of product identifiers, but the most common ones include Global Trade Item Number (GTIN) and Manufacturer Part Number (MPN):

• GTIN: A broad category that contains UPCs, EANs and ISBNs. GS1 — the global standards organization — assigns GTINs.
• MPN: A unique identifier created by the product’s manufacturer to differentiate similar items within their catalog.

Each identifier is crucial in helping businesses manage their product efficiently. While some may have global recognition, others are specific to certain platforms or retailers.

The Importance of Product Identifiers for E-Commerce

The digital marketplace contains millions of products, and e-commerce sales are expected to grow by 39% over the next few years. As competition in online markets increases, ensuring accuracy and efficiency is critical. Here is how product identifiers fit into this role.

Improving Product Traceability

One critical role of product identifiers is traceability. Unique identifiers help businesses track products throughout the supply chain, from manufacturing and distribution to customer delivery. By monitoring product movement, you can identify where damage or loss occurs and take corrective measures. Traceability also improves recall management, enabling companies to identify affected units and reduce liability risks.

Improved Product Discoverability

When a customer searches for a specific item, e-commerce platforms use these identifiers to match the query with the most relevant listings. Properly formatted product identifiers improve a product’s ranking, making it easier for potential buyers to find.

Streamlined Inventory Management

Tracking stock levels across multiple sales channels is challenging. These unique codes simplify the process by allowing businesses to track inventory in real time. By using Stock Keeping Units (SKUs) and GTINs, companies can ensure they have accurate records of stock levels.

How to Use Product Identifiers Effectively

Correctly implementing product identifiers is key to improving your e-commerce operations. The following approach can help you achieve this.

1. Choose the Right Identifier for Your Products

Unique bar codes serve different purposes. Selecting the correct one depends on your business model, the platforms you sell on and the level of product traceability you need.

For instance, Amazon and Walmart typically require GTINs for accurate listings. Meanwhile, you need SKUs to track stock across warehouses and sales channels. Understand which best suits your products to ensure seamless integration with marketplace and inventory systems.

2. Assign and Manage Identifiers

Once you have chosen the right identifiers, effectively managing them is essential to maintaining data accuracy. Proper management will minimize errors in order fulfillment and inventory tracking and ensure that items ship out to customers smoothly.

3. Integrate Product Identifiers Into Your E-Commerce Strategy

Many e-commerce owners use product identifiers to enhance marketing efforts and improve the customer experience. For example, you can use e-commerce tools to analyze competitor pricing based on shared identifiers. By discovering this information, you can adjust pricing strategies and compete with similar businesses.

Leveraging Product Identifiers for E-Commerce Success

While product identifiers may seem like simple codes, they are crucial in streamlining operations. However, you must use the right ones to ensure your company remains efficient and scalable. By integrating them into your business, you can gain a competitive advantage and enhance your online presence.