All you need to know about barcodes
Although getting a barcode for your first product can seem like a daunting task, with a little bit of knowledge and education you'll see it's not as hard as it seems. It took me a few weeks to make sense of the all the barcode jargon and information, so I've presented a summary over here.
The basics and a bit of history:
Most retailers across the world use the barcoding system for identifying different products and prices. Imagine if every time you did your groceries that the cashier had to look on the packaging of the product for a price and then manually enter that price into the till. If you have a whole trolley full of food that could take a long time! It's hard to imagine, but 20 years ago barcode scanners were the exception rather than the rule at many retailers. The ability to scan an item and have it's price automatically entered on a till has dramatically changed the amount of time the average person needs to spend at a given shop. Barcoding has also had a profound effect on sales and service efficiency of retailers. I found this quote on wikipedia when I first started learning about barcodes:
"about 5 weeks after installing barcode scanners, sales in grocery stores typically started climbing and eventually leveled off at a 10-12% increase in sales that never dropped off. There also was a 1–2% decrease in operating cost for the stores that enabled them to lower prices to increase market share. It was shown in the field that the return on investment for a barcode scanner was 41.5%. By 1980, 8,000 stores per year were converting."
It's clear that barcoding of products is something that has greatly benefitted both consumers and retailers!
Barcodes for retail products come in two different types: EAN and UPC. EAN numbers are 13 digits and UPC numbers are 12 digits. A UPC number can be converted to an EAN number. Nowadays it really doesn't matter if a barcode is UPC or EAN as barcode scanners pick up both kinds of numbers and both are used across the world. EAN numbers were originally designed to allow for more unique barcode numbers as the extra digit allows for an extra 10 times the amount of barcode numbers than is possible with UPC's 12 digits.
How do I get my product into a shop? - The summary
In a nutshell, to get your product into stores you need to do the following:
1. Get a unique and valid barcode number:
All barcodes originate from the global organisation GS1. GS1 manages, regulates and distributes barcodes internationally. They make sure that barcode numbers are distributed to companies in such a way that there are no duplicate numbers. Duplicate numbers would be bad news, just imagine two products at a retailer having the same number, but each product being a completely different item with a different price. The whole scanning system would be confused! It's for this reason that one can't make up your own barcode number as certain checks and balances need to be in place to avoid any potential problems of the aforementioned type.
One way to get a uniquely issued barcode number that will work in all stores is to go straight through GS1. I found their website over here. There is a form that one can fill out on the website. 5 days after receipt of your payment they will send you your barcode number via courier.
There are also Barcoode Resellers on the internet that issue unique and valid barcode numbers. These numbers also originate from GS1 but have effectively been "pre-owned" but also "never been used".
Prior to 2002 GS1 distributed barcode numbers without yearly renewal fees. This all changed in 2002 when GS1 announced that one now had to pay a yearly fee to continue to be able to use the barcodes one previously bought. Of course all future barcodes purchased would also be subject to yearly renewal fees. GS1 was taken to court by a few companies over this matter and they ended up winning the court case. On 28 August 2002, the UCC (now known as GS1) licensing agreement became null and void due to this court case. What that means in plain and simple english is that barcodes sold prior to 28 August 2002 became the sole property of the people that originally bought them, without being subject to GS1's terms and conditions. These barcodes, then, were not subject to yearly renewal fees and also, now, were able to have ownership transferred from one party to another.
Some of these companies had purchased millions of barcodes that were never used. Barcode resellers came along, purchased these barcodes that were issued prior to 28 August 2002 and are legally allowed to resell them to individuals and companies for their own use without going through GS1. Barcode resellers are often a better alternative for getting your unique and valid barcode number than GS1 in that they are often significantly more affordable, the barcodes aren't subject to annual renewal fees and you receive your barcode very soon after purchase (often within minutes). These benefits are massive for small business owners who are often struggling with startup costs, given that a getting even one barcode from GS1 costs thousands of rands. For a large company, it's probably easier to go with GS1. Two reputable barcode resellers I came across that legally distribute unique barcode numbers are SA Barcodes and Buyabarcode.
I found getting a unique and valid number through these companies quite easy. After payment I had my barcode numbers, images and certificate of ownership within a few hours.
2. Printing your barcode numbers:
Once you have your unique barcode numbers for your products the next step is to attach the barcode numbers to the product so that your product can be scanned at retail stores.
The basics and a bit of history:
Most retailers across the world use the barcoding system for identifying different products and prices. Imagine if every time you did your groceries that the cashier had to look on the packaging of the product for a price and then manually enter that price into the till. If you have a whole trolley full of food that could take a long time! It's hard to imagine, but 20 years ago barcode scanners were the exception rather than the rule at many retailers. The ability to scan an item and have it's price automatically entered on a till has dramatically changed the amount of time the average person needs to spend at a given shop. Barcoding has also had a profound effect on sales and service efficiency of retailers. I found this quote on wikipedia when I first started learning about barcodes:
"about 5 weeks after installing barcode scanners, sales in grocery stores typically started climbing and eventually leveled off at a 10-12% increase in sales that never dropped off. There also was a 1–2% decrease in operating cost for the stores that enabled them to lower prices to increase market share. It was shown in the field that the return on investment for a barcode scanner was 41.5%. By 1980, 8,000 stores per year were converting."
It's clear that barcoding of products is something that has greatly benefitted both consumers and retailers!
Barcodes for retail products come in two different types: EAN and UPC. EAN numbers are 13 digits and UPC numbers are 12 digits. A UPC number can be converted to an EAN number. Nowadays it really doesn't matter if a barcode is UPC or EAN as barcode scanners pick up both kinds of numbers and both are used across the world. EAN numbers were originally designed to allow for more unique barcode numbers as the extra digit allows for an extra 10 times the amount of barcode numbers than is possible with UPC's 12 digits.
How do I get my product into a shop? - The summary
In a nutshell, to get your product into stores you need to do the following:
- Get a unique and valid barcode number
- Print your barcode number onto barcode labels and stick these onto your product. Alternatively you could include your barcode image directly on the packaging of your product, which will then be able to be read by scanners after you've printed your packaging.
- Take a sample of your product along with it's respective barcode to your retailer and have them make sure your barcode scans.
- Once your product along with its barcode has been accepted by the retailer(s) you're set!
1. Get a unique and valid barcode number:
All barcodes originate from the global organisation GS1. GS1 manages, regulates and distributes barcodes internationally. They make sure that barcode numbers are distributed to companies in such a way that there are no duplicate numbers. Duplicate numbers would be bad news, just imagine two products at a retailer having the same number, but each product being a completely different item with a different price. The whole scanning system would be confused! It's for this reason that one can't make up your own barcode number as certain checks and balances need to be in place to avoid any potential problems of the aforementioned type.
One way to get a uniquely issued barcode number that will work in all stores is to go straight through GS1. I found their website over here. There is a form that one can fill out on the website. 5 days after receipt of your payment they will send you your barcode number via courier.
There are also Barcoode Resellers on the internet that issue unique and valid barcode numbers. These numbers also originate from GS1 but have effectively been "pre-owned" but also "never been used".
Prior to 2002 GS1 distributed barcode numbers without yearly renewal fees. This all changed in 2002 when GS1 announced that one now had to pay a yearly fee to continue to be able to use the barcodes one previously bought. Of course all future barcodes purchased would also be subject to yearly renewal fees. GS1 was taken to court by a few companies over this matter and they ended up winning the court case. On 28 August 2002, the UCC (now known as GS1) licensing agreement became null and void due to this court case. What that means in plain and simple english is that barcodes sold prior to 28 August 2002 became the sole property of the people that originally bought them, without being subject to GS1's terms and conditions. These barcodes, then, were not subject to yearly renewal fees and also, now, were able to have ownership transferred from one party to another.
Some of these companies had purchased millions of barcodes that were never used. Barcode resellers came along, purchased these barcodes that were issued prior to 28 August 2002 and are legally allowed to resell them to individuals and companies for their own use without going through GS1. Barcode resellers are often a better alternative for getting your unique and valid barcode number than GS1 in that they are often significantly more affordable, the barcodes aren't subject to annual renewal fees and you receive your barcode very soon after purchase (often within minutes). These benefits are massive for small business owners who are often struggling with startup costs, given that a getting even one barcode from GS1 costs thousands of rands. For a large company, it's probably easier to go with GS1. Two reputable barcode resellers I came across that legally distribute unique barcode numbers are SA Barcodes and Buyabarcode.
I found getting a unique and valid number through these companies quite easy. After payment I had my barcode numbers, images and certificate of ownership within a few hours.
2. Printing your barcode numbers:
Once you have your unique barcode numbers for your products the next step is to attach the barcode numbers to the product so that your product can be scanned at retail stores.
