The Ultimate Guide to Barcodes: Where to Buy in 2022

Table of Contents

1. Introduction
2. Brief History of Barcodes
3. The Role of GS1 in Barcode Standardization
4. The UCC Settlement Agreement and its Impact
5. Options for Obtaining Barcodes
6. Differences between GS1 and Non-GS1 Barcodes
7. Retailers' Requirements for Barcodes
8. Cost Comparison: GS1 vs. Third-Party Vendors
9. Beware of Fraudulent Barcode Sellers
10. Conclusion

Introduction

In this article, we will delve into the world of barcodes and explore how they are purchased. Barcodes have become an essential tool for businesses worldwide, aiding in the organization and consolidation of products in the global market. Understanding the history of barcodes and the role of organizations like GS1 in their standardization will provide valuable insights into the barcode landscape. We will also discuss the option to buy or rent barcodes, the differences between GS1 and non-GS1 barcodes, and the requirements set by certain retailers. Furthermore, we will examine the cost implications of obtaining barcodes and shed light on the caution needed to avoid fraudulent barcode sellers. By the end of this article, you will have a comprehensive understanding of barcode purchasing and be equipped to make informed decisions.

Brief History of Barcodes

In order to comprehend the purchasing process of barcodes, it is necessary to take a step back and explore their origins. Barcodes were conceived as a means to efficiently organize products, starting with the Universal Product Code (UPC), which was initially intended for grocery stores. As barcodes gained popularity, their use expanded beyond grocery items and spread internationally. The European Article Number (EAN), developed to meet the demands of various countries, played a significant role in the global adoption of barcodes. In 2005, the Uniform Code Council (UCC) rebranded as GS1, an organization dedicated to establishing and managing barcode standards. This transition marked a milestone in achieving global consensus on barcode standards.

The Role of GS1 in Barcode Standardization

GS1, formerly known as the UCC, has played a pivotal role in the standardization of barcodes. As a nonprofit organization comprised of private companies, GS1 has developed and maintained numerous standards for barcodes. While they offer a range of business services, our focus will be on their services related to retail barcodes. GS1 serves as the central authority for providing unique identification numbers, also known as Global Trade Item Numbers (GTINs), which are used in barcodes. The significance of GS1 lies in its ability to bring together retailers and businesses worldwide under a single set of standards.

The UCC Settlement Agreement and its Impact

A significant turning point in the barcode industry was the UCC settlement agreement, finalized on August 28, 2002. Prior to this agreement, barcodes were acquired by purchasing a six-digit company prefix from the UCC. Each prefix had the capacity to generate up to a hundred thousand barcode numbers. This system provided an abundance of barcode numbers, far exceeding the requirements of most businesses. However, the UCC decided to adopt a more sustainable approach by transitioning from selling barcode prefixes to running and recycling barcodes. Unfortunately, this change led to a controversial decision to charge previous prefix owners annual fees, attempting to push them towards renting barcodes instead of owning them outright. This unexpected shift resulted in a class-action lawsuit against the UCC, highlighting the absence of renewal fees, membership dues, or renting in the original barcode prefix contracts.

The lawsuit, settled on August 28, 2002, forced the UCC to pay significant damages and allowed the original prefix owners before the settlement to retain their ownership rights without any annual renewal fees. Consequently, almost 30 years' worth of UPCs were no longer under the ownership of the UCC and instead belonged to the businesses that purchased them. This development significantly contributed to the accessibility and affordability of buying barcodes even today. The renaming of the UCC to GS1 in 2005 further solidified the organization's role in barcode standardization.

Options for Obtaining Barcodes

After the UCC settlement agreement in 2002, businesses now have two options for obtaining barcodes for their products. The first option involves obtaining barcodes directly from GS1, while the second option offers the opportunity to purchase barcodes from the pool of buyer-owned barcodes that existed before 2002.

When considering these two options, it is important to note that there are no functional differences in the retail barcode standards. UPCs and EANs, now known as GTINs, have remained consistent in their ability to be scanned at retail point-of-sale systems worldwide. While the common names have been updated for convenience, the barcode structure has remained unchanged over the decades.

Differences between GS1 and Non-GS1 Barcodes

While the functional aspects of barcode standards remain the same, there are differences between GS1 and non-GS1 barcodes in terms of procurement and compliance with certain retailers. GS1 is closely partnered with specific retailers that require barcodes to be purchased directly from them. These retailers enforce strict operating procedures and ensure that a company's name appears in GS1's registry system. In these cases, renting barcodes from GS1 becomes the only option to comply with the retailer's requirements.

Nevertheless, the majority of retailers accept barcodes purchased from non-GS1 barcode suppliers, allowing businesses to save both time and money. It is important to note that the buying option from third-party vendors is entirely acceptable among most retailers and does not hinder a business's ability to use barcodes effectively.

Retailers' Requirements for Barcodes

Several popular retailers have specific requirements for the barcodes associated with their products. For example, Walmart, which played a significant role in the founding of GS1, mandates that new vendors rent their barcodes directly from GS1. However, businesses that owned their barcode prefixes before the UCC settlement agreement have the freedom to use their barcodes anywhere, including Walmart. It is worth mentioning that Walmart's online division has different barcode requirements, granting more flexibility to online retailers who can utilize their own barcodes.

Another notable example is Amazon, a prominent e-commerce platform that does not strictly enforce the use of GS1 barcodes for the majority of sellers. Most Amazon sellers can freely own and use their own barcodes without any complications. However, for businesses wishing to join Amazon's Brand Registry Seller Program, renting barcodes from GS1 or obtaining a GTIN exemption becomes necessary. It is important to familiarize yourself with the requirements of specific platforms and vendors when it comes to barcode procurement.

Cost Comparison: GS1 vs. Third-Party Vendors

When considering the cost difference between GS1 and other barcode providers, it becomes evident that GS1 tends to be more expensive. Many customers are surprised by the significant disparity in pricing and assume that GS1 is the only viable option due to its history. However, the UCC settlement agreement allowed pre-2002 barcode owners to retain full rights to their codes, including the ability to sell them. This has created competition and lowered the prices in the barcode market.

While GS1 has modified its pricing structure to be more competitive, it still remains comparatively expensive. On the other hand, reputable third-party vendors offer barcodes at a fraction of the cost. For example, 100 barcodes from GS1 can cost around $750 plus an annual fee of $150, amounting to approximately $9 per code in the first year and $1.50 per code annually thereafter. Conversely, purchasing barcodes outright from third-party vendors could cost as little as $45 for 100 codes, which equates to less than half a dollar per code for the entire lifetime of the barcodes.

When considering these cost differences, it becomes clear that choosing the option that saves both time and money is the ideal choice for most businesses.

Beware of Fraudulent Barcode Sellers

As the barcode industry has expanded, so have the occurrences of fraudulent barcode sellers. It is essential to exercise caution when considering buying barcodes from non-GS1 vendors. Some companies sell fake UPC numbers that have no validity. While there is no formal authority overseeing barcodes, it is crucial to ensure that the barcode numbers you purchase are legitimate and recognized by retailers.

To safeguard businesses from potential fraudulent resellers, our team has compiled a dedicated web page that identifies and exposes suspicious barcode sellers. This resource can serve as a valuable tool in making informed decisions and avoiding any fraudulent activities.

Conclusion

In conclusion, purchasing barcodes is a relatively straightforward process once you understand the history and current landscape of the barcode industry. The role of GS1 in standardizing barcodes and the impact of the UCC settlement agreement have shaped the way barcodes are acquired and used today. Businesses have the option to obtain barcodes directly from GS1 or purchase previously owned barcodes from non-GS1 vendors. While certain retailers require barcodes to be directly rented from GS1, the majority of retailers accept barcodes from non-GS1 vendors. Cost considerations further favor the option of purchasing barcodes from reputable third-party vendors, as it is a more affordable and practical choice for most businesses. However, caution must be exercised to avoid scams and fraudulent barcode sellers.

By expanding your knowledge of barcode purchasing options, you can make informed decisions that save both time and money for your business. Whether you choose to work directly with GS1 or opt for non-GS1 vendors, the barcode functionality and compliance with retail systems remain the same. Embrace the opportunities that barcode technology offers in organizing and streamlining your products in the global market.

Now that you have a comprehensive understanding of barcode purchasing, you are equipped to confidently navigate the barcode landscape and optimize your business operations.

Highlights

1. Learn the history of barcodes and how they have evolved over time.
2. Understand the role of GS1 in barcode standardization and their services for retail barcodes.
3. Explore the impact of the UCC settlement agreement on barcode procurement options.
4. Discover the differences between purchasing barcodes from GS1 and non-GS1 vendors.
5. Determine the requirements set by specific retailers for barcode compliance.
6. Compare the cost implications of obtaining barcodes from GS1 and third-party vendors.
7. Be vigilant against fraudulent barcode sellers to ensure the validity of your barcode numbers.

FAQ

Q: Are barcodes difficult to purchase? A: Not at all! Purchasing barcodes is a straightforward process once you understand the options available to you.

Q: Can I buy barcodes outright or do I have to rent them? A: You can choose to buy barcodes outright from reputable third-party vendors or rent them directly from GS1. The choice depends on your business requirements and the specific retailers you intend to work with.

Q: How much do barcodes cost? A: The cost of barcodes varies depending on the provider. GS1 typically charges higher prices, while third-party vendors offer more affordable options. Generally, buying barcodes outright from third-party vendors is more cost-effective in the long run.

Q: Are there any requirements imposed by retailers regarding barcodes? A: Some retailers may require barcodes to be purchased directly from GS1, while others accept barcodes from non-GS1 vendors. It is essential to understand the requirements of specific retailers and platforms for barcode compliance.

Q: How can I avoid purchasing barcodes from fraudulent sellers? A: It is crucial to exercise caution when purchasing barcodes from non-GS1 vendors. Our team has compiled a dedicated web page to help businesses identify potential fraudulent resellers. By referring to this resource, you can make informed decisions and avoid scams.