Starting a business involves countless decisions, from perfecting your product to finding your first customers. One detail that often slips under the radar until the last minute is the barcode. While they seem like simple black-and-white lines, barcodes are essential tools for tracking inventory, speeding up checkout processes, and getting your products onto retail shelves.
Understanding how barcodes work early in your business-owning journey saves you from headaches later. It makes sure your operations run smoothly as you scale and prevents costly repackaging errors.
The Two Main Types of Barcodes
Barcodes generally fall into two categories: 1D and 2D. Knowing the difference helps you pick the right system for your needs.
1D Barcodes (Linear)
These are the traditional barcodes you see on almost every retail product. They hold information horizontally and typically contain alphanumeric data.
- UPC (Universal Product Code): The standard for retail products in North America. If you plan to sell in stores, you will almost certainly need UPCs.
- EAN (European Article Number): Similar to UPCs but used predominantly outside of North America.
2D Barcodes
These look like squares or rectangles containing many small dots (like a QR code). They store data both vertically and horizontally, allowing them to hold much more information.
- QR Codes: often used for marketing to link customers to websites.
- Data Matrix: commonly used for small items or in manufacturing to track parts.
Why You Need a GS1 Prefix
If you intend to sell your products through major retailers like Amazon, Walmart, or Target, you cannot just make up your own barcode numbers. You need unique identification numbers that trace back to your company.
The Global Standards 1 (GS1) is the non-profit organization that manages these standards. When you license a GS1 Company Prefix, they assign you a unique set of numbers. This prefix identifies your company as the owner of the barcode.
Buying “discount” barcodes from third-party resellers often leads to trouble. These resellers usually sell codes that belong to other companies. Major retailers often reject these, forcing you to relabel your entire inventory.
Hardware Considerations
Once you have your codes, you need the right tools to read them. This is where choosing electronics for your business becomes important. You don’t need the most expensive scanner on the market, but you do need one that matches your workflow.
Consider these factors:
- Mobility: Do you need a cordless scanner to move around a warehouse, or will a corded scanner at a checkout counter suffice?
- Durability: Will the scanner survive drops on a concrete floor?
- Compatibility: Does it integrate easily with your Point of Sale (POS) system or inventory management software?
Printing Your Barcodes
You also need a reliable way to print these codes onto your products. You have two primary options:
- Direct Thermal Printing: Uses heat-sensitive paper. It is cost-effective but the labels fade over time, especially if exposed to heat or sunlight. This works well for shipping labels.
- Thermal Transfer Printing: Uses a heated ribbon to transfer ink onto the label. These labels are durable and long-lasting, making them ideal for product inventory that might sit in a warehouse for months.
Getting your barcode strategy right from day one sets a professional foundation for your brand. It streamlines your logistics and opens doors to big-box retailers when you are ready to expand.