For any small business, a barcode system is one of the most versatile, affordable, and easy-to-use inventory management tools at their disposal.

By printing your own barcodes, you can track inventory, manage customer loyalty programs, and even create personalized marketing materials.

In this post, we’ll talk about the following:

1. What barcodes are and how they work
2. Use cases for barcode systems
3. How to get started with a barcode system
4. Choosing tools and software to create and track your barcodes

What are barcodes, and how do they work?

Barcodes are a series of black and white lines that machines can read. The widths and spacings of the lines represent unique data that scanners can decode.

Barcodes were invented in the 1970s as a way to track inventory in grocery stores. Today, they’re used in all sorts of industries to track everything from books to livestock.

A scanner reads a barcode and converts the lines into electrical impulses. The scanner then sends these impulses to a computer, which translates them into numbers or other symbols. Together, barcodes, scanners, and printers make up the majority of warehouse scanning equipment used by ecommerce retailers.

Every scan updates your stock count, tracks movement, and links the right product to the right order.

Tracking products

By scanning a barcode, you can quickly and easily pull up information about an item, such as how many are in stock, where it’s located, when it needs to be reordered, etc.

Barcodes are often scanned many times throughout a product’s lifecycle. For example, warehouse employees will scan products when they’re received, ordered, picked, processed, and shipped, thus keeping tabs on their status throughout the entire logistics pipeline.

Pro Tip: Want to make sure your barcode system integrates with the rest of your business? See our post on popular barcode software that can help keep your business in sync.

Managing customer loyalty programs

Barcodes can be used to track customer purchases and award points accordingly. For example, you could give customers a card with a barcode that they can scan every time they make a purchase.

You could then use this data to generate reports that show how often customers are shopping, what kinds of things they’re buying, how much they’re spending, etc.

This information can be used to tailor loyalty programs and marketing campaigns to individual customers.

Creating personalized marketing materials

Barcodes can be used to create personalized marketing materials, such as coupons and discount codes.

For example, you could use a barcode to generate a unique discount code for each customer. The customer could then scan the barcode to receive the discount.

You could also use barcodes to track how often customers are using your coupons or how much they’re spending.

As you can see, barcodes offer a lot of benefits for small businesses. In the next section, we’ll talk about how to get started with your own barcode system.

When is it time to implement a barcode system?

There’s no hard-and-fast rule for when you should start using barcodes. However, there are a few general guidelines that can help you decide if it’s time to make the switch:

You’re manually tracking inventory

If your stock count lives in a spreadsheet or on paper, you’re one miskey away from an oversell. Barcodes automate the count and cut out manual errors.

You have a lot of products

If you have a large inventory, it can be difficult to keep track of everything without barcodes. Barcodes can help you quickly and easily locate specific items in your inventory.

You have multiple locations

If you have multiple warehouses or retail stores, barcodes can help you keep track of inventory levels in each location.

You want to track customer loyalty

If you want to start a loyalty program or collect data about your customers’ purchasing habits, barcodes can help you do that.

Now that we’ve covered the basics of barcodes and how they can benefit your small business, let’s talk about how to create your own barcodes.

More use cases for barcode systems

Barcodes aren’t just for stock. Here’s where else they save time and cut errors:

• Asset tracking: Barcodes can be used to track the location of assets, such as computers, tools, and equipment.
• Time tracking: Barcodes can be used to track employee clock-in/clock-out times.
• Visitor management: Barcodes can be used to track who is coming and going in a building.
• Event management: Barcodes can be used to track attendees at events, such as conferences and trade shows.
• Shipping and receiving: Barcodes can be used to track shipments and deliveries.

A step-by-step guide to implementing a barcode system

Now that you know how barcodes can benefit your small business, let’s talk about how to get started with your own barcode system.

1. Choose a barcode type

There are two main types of barcodes: linear (or 1D) and 2D.

Linear barcodes are the most common type of barcode. They are often used to track inventory in retail stores. Linear barcodes can store up to 20 digits of information.

2D barcodes are less common, but they are gaining popularity due to their ability to store more information. 2D barcodes can store up to 7,089 characters of information.

So how do you know which barcode type is right for your business? It depends on your needs. If you only need to track basic information, such as product names and prices, a linear barcode will probably suffice.

However, if you need to track more detailed information, such as customer data or shipping details, a 2D barcode would be a better option.

2. Choose a barcode symbology

Once you’ve decided on a barcode type, you need to choose a symbology. Symbology is a specific format for encoding data in a barcode. There are dozens of different symbologies, but the most popular ones are Code 128, Code 39, and UPC-A.

Code 128 is the most versatile symbology and can be used to encode any type of data. However, it is more complex than other symbologies and requires more computer processing power to decode.

Code 39 is a popular symbology for encoding alphanumeric data. It is often used to track inventory in warehouses.

UPC-A is the most common symbology for encoding numeric data. It is often used to track products in retail stores.

3. Get a barcode scanner

Once you’ve chosen a symbology, you’ll need to get a barcode scanner that can read that symbology. Barcode scanners are available in both handheld and fixed-mount models.

Handheld scanners are the most common type of scanner. They are small, portable, and easy to use. However, they can only scan one barcode at a time.

Fixed-mount scanners are larger and more expensive than handheld scanners. But they have the advantage of being able to scan multiple barcodes at once. This makes them ideal for use in warehouse or retail environments.

See our post on how to pick the right barcode printer and scanner to get the right equipment for your business.

4. Generate your barcodes

Now that you have a barcode scanner, you need to generate the barcodes themselves. There are many barcode software programs and online barcode generators that can help you do this, and the fastest option is usually a free barcode generator you can use right in your browser.

Some barcode generators, such as Barcode Maker, allow you to create barcodes for free. Others, such as TEC-IT, charge a monthly subscription fee.

It is possible to generate barcodes for free using tools like Excel, Google Sheets, or LibreOffice.

However, these tools only support a limited number of symbologies, and they can be cumbersome to track. For example, Excel only supports Code 128 and UPC-A.

We recommend using a dedicated barcode generator, such as Barcode Maker, to create your barcodes. This will save you time and ensure that your barcodes are generated correctly.

5. Print your barcodes

Once you’ve generated your barcodes, you need to print them. You can print barcode labels, tags, or cards on a regular printer, though a dedicated label printer produces sharper, more durable product labels.

However, if you plan on printing a large number of barcodes, we recommend investing in a thermal transfer printer. Thermal transfer printers are designed specifically for printing barcodes and labels.

Barcode printers are specialized machines that are designed specifically for printing barcodes. They are more expensive than regular printers, but they offer the advantage of being able to print barcodes directly onto products.

You can use a regular printer, but you’ll need the right label stock.

If you don’t have a thermal transfer printer, you can also use an online printing service, such as Moo or Vistaprint.

6. Test your barcodes

Once you’ve printed your barcodes, it’s important to test them to make sure they work correctly. The best way to do this is to scan the barcodes with your barcode scanner.

If the barcodes are working correctly, the scanner should be able to read the data encoded in the barcode. If the scanner is unable to read the barcode, it may be due to a printing error or the wrong symbology being used.

It’s also a good idea to test your barcodes with multiple scanners, just to be sure. Barcode scanners can differ in their ability to read certain symbologies, so it’s important to test with a variety of scanners.

7. Apply your barcodes

Now that you’ve generated, printed, and tested your barcodes, it’s time to apply them to your products. This can be done using labels, tags, or cards.

Labels are the most common type of barcode, and they can be applied by hand or with a labeler. Labelers are specialized machines that apply labels quickly and accurately.

Tags are similar to labels, but they are larger and more durable. They can be applied by hand or with a tagger. Taggers are specialized machines that apply tags quickly and accurately.

Cards are the least common type of barcode, but they offer the advantage of being more durable than labels or tags.

They can be applied by hand or with a card printer. Card printers are specialized machines that print barcodes directly onto cards.

8. Track your barcodes

Once you’ve applied your barcodes, you need to track them. This can be done manually or with inventory management software like Linnworks.

Inventory management software makes it easy to track your barcodes and inventory levels in real time. This can save you a lot of time and hassle, especially if you have a large inventory.

You can also track your barcodes manually, but this can be time-consuming and error-prone. We recommend using inventory management software to track your barcodes.

Frequently Asked Questions about barcode systems

What is the most commonly used barcode type?

The most commonly used barcode type is Code 128. It is a universal product code that can be read by virtually any barcode scanner, which makes it a popular choice for small business inventory management and product labels.

What are the different types of barcodes?

There are many different types of barcodes, but the most common are:

• Code 128
• UPC-A
• UPC-E
• EAN-13
• EAN-8
• ITF (Interleaved Two of Five)

How do I generate barcodes?

There are many ways to generate barcodes. The easiest way is to use a free online barcode generator, such as Barcode Generator, which lets you create barcodes and download a print-ready barcode image in seconds.

What is a 10-digit barcode called?

A 10-digit barcode is typically an EAN barcode. EAN barcodes are a type of GS1 barcode used on retail products around the world.

What is a 5-digit barcode called?

A 5-digit barcode is often a UPC-E barcode, a compact version of the UPC code designed for small product labels where space is limited.

What type of barcode is a QR code?

A QR code is a 2D barcode. Unlike a 1D barcode, this barcode type stores data both horizontally and vertically, so a QR code can hold much more product information and is easy to scan with a smartphone or barcode scanner.

How much data can a barcode hold?

The amount of data a barcode can hold depends on the barcode type. A 1D barcode typically holds around 20 to 25 characters, while a 2D barcode such as a QR code can store thousands of characters of product information.

What is the difference between EAN-8 and EAN-13?

Both are EAN barcodes and part of the GS1 barcode family. EAN-8 is a compact 8-digit barcode used on small product labels, while EAN-13 is a 13-digit barcode used on most retail products. Both can be produced with a standard barcode generator and scanned with any barcode scanner.

How do I make barcodes for a small business?

Making barcodes for a small business is simple. Choose a barcode type (such as a UPC code, EAN barcode, or a QR code), use a free online barcode generator or barcode software to create your barcodes, print them as barcode labels with a label printer, and scan them into your inventory management system to track each retail product.

What is the best free barcode generator?

The best free barcode generator is one that supports multiple barcode types, lets you generate barcodes in bulk, and exports a high-resolution barcode image ready for printing. A good online barcode generator should let you create both 1D barcodes (like Code 39, Code 128, and Codabar barcodes) and 2D barcodes such as QR codes at no cost.

What are barcode labels?

Barcode labels are printed product labels that carry a scannable barcode image along with product information. You create the barcode with a barcode generator, print the barcode labels using a label printer, and apply them to each item so staff can scan barcodes into your barcode inventory system.

What are ITF-14 barcodes used for?

ITF-14 barcodes are a GS1 barcode type used to label shipping cartons and cases rather than individual barcodes on single retail products. They encode the outer packaging quantity, making them ideal for warehouse barcode scanning and inventory management.

Final thoughts

Implementing a barcode inventory management system should be a no-brainer for businesses of all sizes, especially small businesses.

Given their low implementation cost and versatility, barcodes offer a wide range of benefits that can streamline operations, improve accuracy, and save time and money.

Just remember, scanning barcodes won’t mean a thing if you don’t have a digital system for organizing your inventory.

This includes things like product information, supplier details, stock levels, and more.

Investing in dedicated inventory management software like Linnworks is the best way to get the most out of your barcode system and keep your business running like a well-oiled machine.

To learn more about how Linnworks can help you save time, money, and headaches in your inventory management, check out our features page or click the button on this page to get a live demo.