United Nations Standard Product and Services Classification - Explained
What is a UN Standard Product and Services Classification?
Written by J. Mance Gordon
Updated at April 21st, 2024
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What is the United Nations Standard Product and Services Classification (UNSPSC)?
This United Nations Standard Product and Services Classification (UNSPSC) is a classification scheme that covers all types of goods and services that are used in the ecommerce industry. It is a framework that gives a hierarchical presentation of goods and services.
UNSPSC has a five-level rational framework and each level is characterised by a two-character numerical value. The five-level framework are:
- Family: these are goods and services that have some sort of connection, interdependence or interrelatedness.
- Segment: this is grouping goods and services into sections for analytical purposes.
- Class: grouping of items based on their shared properties.
- Commodity: group of substitutable good or services.
- Business function: the performance of an organization in support or opposition of the good or service.