Monday, October 19, 2020

How to Get Authentic Barcodes for Manufactured CPG for Retail Sale Inexpensively

Barcodes provide product information like brand name, product type, variations (like color, size and so on) and unit retail price in the product mix. Example: Brand A, Product line B, Vegan hand bag, Regular Size, Dark brown and so on

Unique Product Code / UPC-A  (aka GTIN-12) and or, their non-North American version, the EAN (aka GTIN-13) barcodes are required on packaging if you manufacture consumer packaged goods (CPGs aka fast moving consumer goods / FMCGs) for retail sale. This is especially the case if your products will be sold at major retail outlets where products are scanned for efficient and accurate identification at the checkout point.

To clarify, each product variation will have two versions, ie a UPC and EAN version. Manufacturers that distribute products internationally have only to verify the preference of all retailers in any supply chain. However, as suggested above, UPC are the standard barcode used in North America while the EAN codes are the standard elsewhere globally. 

However, I still can not stress enough the need to confirm barcode formats with retailers when planning your labeling. Fortunately, many retailers even have machines that read either format without a problem. However, most will object strongly to your simultaneous printing of both barcodes on a single package as this usually leads to problems with efficiency at the point of sale.

UPCs and EANs are used for all retail products, both off and online and with only a few exceptions (such as books, pharmaceuticals and variably weighted goods like meat and vegetables). These codes are highly functional as they are used so widely as a standard that retailers worldwide, of all operational sizes use them seamlessly. Some better known large retailers include Google Merchant, Amazon (for MOST products) and Overstock.com, Trader Joe's, Whole Foods, Office Depot, etc. Regardless of where you source them, all authentic codes originate from the GS1, a non-profit organization that sets the standards for the use of barcodes in global commerce.

However, you can choose to buy barcodes from either 1) the GS1 directly or 2) resellers. While there are ilegitimate resellers (who sell entirely madeup or recycled numbers), it is possible to buy GS1-originated barcodes from legally authorized resellers, whose barcodes never expire, thereby not requiring you to pay the otherwise yearly renewal fee. However, such barcodes must have predate August 2002, (a significant turning point after which barcodes were rented out from GS1 versus being owned outright, can therefore expire and require the payment of annual renewal fees).


GS1 or Reseller?

As just mentioned, purchasing barcodes directly from GS1 requires fees for membership and annual renewals. For instance, the GS1 may require you to pay a $250 initial fee and $50 annual renewal fee for up to 10 unique barcodes, ie roughly $25 per barcode. Being the global authority on barcodes, this option is safe and legitimate. However, when manufacturers find this continual rental cost prohibitive, they may choose to buy barcodes from resellers for a one-time fee that is sometimes as low as $4.25 per barcode (ie a total payment of $42.50 for 10 barcodes or even less, depending on the reseller). 

In the vast majority of cases, reseller barcodes are acceptable to a retailer's 'Vendor Compliance  Program'. However, in the less likely event that you need codes bought directly from GS1 (as when selling through Walmart, Kroger's, JC Penny and Macy's/Bloomingdales), you will have no choice but to buy directly from GS1. Just to explain however, these retailers demand directly bought GS1 codes that carry the manufacturer-owned prefix numbers and therefore the manufacturer's name (versus that of resellers). When you buy codes from resellers, you will essentially use the prefix owned by a reselling company that has purchased barcodes before August 2002.

This video is a brief history that explains how the current practice of resellling barcodes became legalized in August 2002. Before the class action against the GS1, companies were forced to buy massive lots of numbers, specifically prefix numbers that were unique to their company whose following unfixed numbers allowed those comapnies the possibility of assigning tens of thousands of products to that many outstanding code combinations, even if such companies only needed as few as 10 codes. However, these companies filed a class action when GS1 wanted to convert the earlier outright purchase of barcodes to rentals. In the end, those pre-2002 GS1 customers were free to never have to pay rental / renewal fees and to have the right to resell the many thousands of unused codes under their pre-existing prefix numbers.

Since GS1 operates in over 100 countries, you can likely contact an office in your country, or region. If unsure, landing on the GS1 website, automatically provides this information (as the site can detect your location). You will see that office's street address, telephone number and email address.

Beyond this point, this post explains the necessary steps for getting authentic and inexpensive barcodes for your manufactured CPGs for retail sale.


Steps

  1. Establish the type of barcode your wholesale buyers require by requesting details of their vendor compliance requirements. This is part of ensuring good B2B customer relationship building as it relates to trustworthiness (of authentic codes) and giving retailers a good customer experience with efficiently working codes. 
  2. Use only those barcode resellers that are authorized and who sell only unused unique barcodes. Examples include: BarcodesTalk.com at toll free (877) 263-1343 or contactus@barcodestalk.com (my favorite because of their very well-informed and capable customer service personnel that is also available for after-sales care) or NationwideBarcode.com at toll free (888) 356-7770 or info@nationwidebarcode.com.
  3. Unfortunately, it is not possible to access any single database to investigate your barcode number(s) beforehand. 
  4. After buying the codes, you can search through different barcode databases to see whether anyone has illegally used your codes. Unfortunately, there is no single global database for doing this. However, see the following useful resource(s). 
    1. Barcode lookup app
  5. Expect (or request) that any legitimate reseller will provide the following among other things.
    • both UPC and EAN barcode numbers automatically (to represent any single product variation). In only some cases (like that of BarcodeTalk.com), you can specially request the GTIN-14 barcode which some retailers require for master cartons / warehouse packaging. However, the GTIN-14 codes and artwork will require you to pay an additional fee of roughly $7.50 for each code, with the cost tapering if ordered in larger volumes. 
    • graphics, 
    • certificate of authenticity
    • ownership documents 
    • an Excel list of your numbers
    • support (as by email and or email)
    • free registration to a database like upcbarcodes.com of your barcode. This registration may be useful because it makes your product information available on Google, Bing and some smartphone barcode scanners. This is beneficial as a deterrent against anyone wanting to steal the code and or make claims of ownership.
  6. If retailers do not provide one, prepare an Excel or CSV spreadsheet with the following details for submission to retailers for entry into their inventory management database (that connects to their point of sales / POS systems). 
    • brand
    • product name
    • product description
    • Variations like weight, measurements, colors, size, etc
    • Pricing information
    • SKU number
    • UPC or EAN number

CONTENT RELATED TO GETTING INEXPENSIVE AUTHENTIC BARCODES FOR MANUFACTURED CPGs FOR RETAIL SALE

  • Follow the size requirements. for instance, graphics are provided at 1.5" X 0.8". However, you can reduce the size by as much as 20%, ie to roughly 1.2" X 0.64"
  • Establish the type of barcode your wholesale buyers require by requesting details of their vendor compliance requirements. This is part of ensuring good B2B customer relationship building

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