Creating barcode labels is simple: generate your barcode using a tool, then print it on adhesive labels with a printer. If you only need a barcode image right now, you can use our free barcode generator and download your label. But if you’d like to learn more about barcodes and how barcodes work, proceed and read the rest of the article below.
What are barcodes and how do they work?
Barcode labels are machine-scannable symbols representing product codes such as Universal Product Codes (UPCs), Stock Keeping Units (SKUs), and Quick Response (QR) codes. Scanning these symbols allows you to process sales, run stock counts, and keep inventory updated without manual entry.
There are two main types of barcodes: one–dimensional (1D) and two-dimensional (2D) barcodes. 1D barcodes are the traditional parallel line barcodes that are commonly used in retail, while 2D barcodes can store more data, are scannable from multiple angles, and are often used for more complex applications like marketing and manufacturing.
Making and implementing a barcode system will help you process transactions, perform inventory counts, and streamline your inventory management — all with a few simple steps.
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When using the free barcode generator:
- Select UPC-E when entering a UPC
- Select EAN-13 when entering an EAN
- Select Code 128 when creating internal SKU labels
- Choose QR Code for mobile-use cases such as product details or payments
Most small retailers use Code 128 for internal labels and UPCs or EANs for items sold through retail channels.
Types of barcodes and which one to use
Barcodes come in many formats, but most small businesses only need a few of the common ones. The right choice depends on whether you sell in retail stores, ship products, or need labels for internal tracking.
There are two main categories:
- 1D barcodes: The traditional line-style codes used for retail and inventory labels.
- 2D barcodes: Square codes that hold more information and support mobile scanning.
Here are the formats you’ll see most often and how they’re typically used.
- UPC-A: A 12-digit code used for retail products in the US. You will need UPCs if you plan to sell through major retailers or marketplaces.
- EAN-13: A 13-digit version used outside the US. Choose this if you plan to distribute your products internationally.
- Code 128: A flexible format that works well for internal SKUs, warehouse locations, and logistics labels. It supports both letters and numbers and fits long codes into a small space.
- Code 39: A simple alphanumeric option often used in manufacturing, storage, and back-of-house operations.
- ITF-14: A carton-level barcode used for shipping boxes and wholesale packaging.
- QR codes: A 2D format used for digital tasks such as product pages, payment links, loyalty programs, and customer information. QR codes hold more data than 1D barcodes and can be scanned with smartphones.
An example of a barcode label using both SKU and UPC.
How to make a barcode in three steps
To streamline your inventory management processes, it is important to learn how to set up a proper barcoding system. Essentially, you’ll need to choose a code type, create a barcode for each product, and then print your barcodes and label your products.
Video tutorial
For a video explanation and walkthrough for creating barcode labels, watch this quick five-minute video below.
Step 1: Create your product codes
Creating product codes is the first step in implementing a barcode system. This involves generating unique alphanumeric identifiers like SKUs or assigning standardized product codes like UPCs and EANs (European Article Numbers).
SKUs are created by businesses for internal inventory management and can be encoded into barcode formats for efficient scanning and tracking. UPCs and EANs, on the other hand, are standardized codes used across the retail industry for universal product identification. The barcodes represent the product codes, whether SKUs or UPCs, that you create.
You can learn more in our guide on UPCs vs SKUs, but here’s a quick overview:
| UPCs | EANs | SKUs | |
|---|---|---|---|
| Assigned By | Manufacturers | Manufacturers | Individual retailers |
| Cost | 10 codes for $250 (distributed by Global Standard 1)
| 10 codes for $250 (distributed by Global Standard 1)
| Free |
| Code | Numbers only | Numbers only | Alphanumeric |
| Length | 12 digits | 13 digits | Custom |
Step 2: Create a barcode for each product
Once you’ve created your product codes, your next step is to input your codes into a system that translates them into scannable barcodes. Scanning barcodes will save you from having to type in individual product codes by generating them into scannable images.
There are three simple ways to make barcodes for your products. They include:
- Online barcode generators: Some websites will translate your product codes into a barcode you can download and save for future use. Our free barcode generator above is also an example.
- Retail POS systems: POS systems like Square automatically create a unique barcode based on each item’s product SKU or UPC. You can also print your barcodes straight from your POS account onto a product label.
- Portable barcode label printers: Handheld label printers let you key in a product code to make a barcode for your labels on the spot — perfect for mobile operations.
You can print labels with your custom SKU directly from your Square for Retail inventory catalog. (Source: Fit Small Business)
Step 3: Print your barcode labels
Now it’s time to find the best barcode label printers. Portable label makers are a great way to make and print your barcode labels on the go. Here, we will look at other options for printing your barcode labels.
Laser and inkjet printers
If you’re creating barcode labels using a retail POS, an online site, or another software system, you can download your barcodes, convert them to a document, and use a regular printer and label sheets to print out your barcode labels. Both laser and inkjet printers are capable of printing a diverse spread of label sizes and types.
The Epson WorkForce WF-2950 includes built-in scanning, copying, and faxing features. (Source: Epson)
If you have already started your retail business, you probably own a basic laser or inkjet printer. If not, you can usually find an entry-level model for around $50. If you want extra features, such as scanning, copying, and faxing, all-in-one printers like the Epson WorkForce WF-2950 shown above are available at a higher price point. For label paper, you can buy pre-cut sheets online or from shipping supply retailers.
Avery is a great source for a huge selection of precut laser and inkjet label sheets that work with most POS and other inventory management systems. With them, you can print barcode labels to the exact size and quantity that you need.
Thermal label printers
Thermal label printers use heat to melt a ribbon of pigment into the paper they are printing on to avoid any smudging or removal of ink. This way, your printer will never run out of ink, and you can print infinite numbers of labels. These are a great option if you have to print labels often or at a high volume. They are also relatively inexpensive, starting at about $150 and going up to almost $1,000.
Thermal label printers can print large amounts of labels in a short time. (Source: Zebra)
Dymo and Zebra are top-rated names in thermal barcode label printers. Zebra, in particular, offers a variety of high-capacity label printers, including printers that incorporate radio-frequency identification (RFID) smart label technology for wireless inventory tracking and theft prevention.
Online label generators
As we mentioned earlier, some websites will create barcode labels for you. Online Labels and similar sites sell printed sheets or rolls of the barcode labels you create on their site, but that comes with a price. Expect to pay about $13 per 100 label sheets. For that, you get 700 of the same codes, printed on ready-to-use labels.
Online Labels allows you to both generate and order labels.
Shipping times are fast, usually arriving in three to five days, and it can be a great way to save time. Websites through which you can order labels are popular with manufacturers that need large quantities of labels but don’t want to fuss with printing labels themselves.
Related read: Best Barcode Label Printers
Barcode printing best practices
Follow these basics to help your barcodes scan correctly:
- Use dark bars on a light background and avoid low-contrast color combinations.
- Do not reverse the design with light bars on a dark background.
- Leave the spaces around the barcode blank and avoid cropping that area.
- Do not stretch or distort the barcode when you resize it.
- Test-scan a few labels before you print a large batch.
GS1 vs barcode resellers vs free generators
If you are creating barcodes for your products, you will eventually need to decide whether to buy official UPCs or EANs, purchase lower-cost barcodes from a reseller, or simply use a free generator for internal labels. Each option has its place, but they are not interchangeable. Here is how to choose the right path for your business.
When you need GS1 barcodes
GS1 is the global nonprofit organization that issues and manages UPCs and EANs. They create the numbering system that retailers, marketplaces, and distributors rely on to identify products consistently across supply chains.
If you plan to sell through national retailers, distributors, or major marketplaces, you will need GS1-issued UPCs or EANs. These codes are tied to your business through a GS1 company prefix, which confirms that you are the owner of the product identifiers. Many sales channels check this prefix to verify authenticity and avoid conflicts with other brands.
When barcode resellers are an option
Some small businesses buy UPCs from resellers because they cost less upfront. These barcodes can work for direct sales, craft fairs, pop-up shops, or smaller boutiques. Just keep in mind that reseller barcodes carry the reseller’s GS1 prefix, not yours. Larger retailers and marketplaces often reject them for that reason.
If you think your business may grow into wholesale or nationwide sales, GS1 is the safer path from the start.
When free barcode generators are safe
Free barcode generators are helpful when you need barcodes for internal tasks such as SKUs, shelf labels, sample items, or warehouse locations. These tools create a barcode image, but they do not issue verified UPCs or EANs. That means they are not appropriate for retail distribution or marketplace listings that require GS1 identification.
Use free generators for internal tracking, and save GS1 codes for anything that will be sold through third-party channels.
Frequently asked questions (FAQs)
Click through the sections below to learn more about getting barcodes or creating them yourself, plus costs and other requirements.
Yes. You can create barcodes for internal use with a free generator or with your POS system.
Get a Universal Product Code (UPC) or European Article Number (EAN) from Global Standard 1 or your supplier. SKUs are created internally based on how you organize your products.
GS1 charges around $250 for a batch of UPCs or EANs, plus annual renewal fees. SKUs and QR codes are free to create.
You can sell items without barcodes, but tracking, reporting, and checkout are easier and more accurate when every product has a scannable code.
Yes, it is legal to create your own barcodes for internal use. If you plan to sell through major retailers or marketplaces, you will need GS1 codes to avoid conflicts with other products.
Yes, but many large retailers may reject reseller codes because the GS1 prefix belongs to the reseller instead of your business.
Yes. You can use barcode fonts or formulas to build barcodes in Excel, although most small business owners find an online generator faster and easier.
Bottom line
A simple barcode system can help you manage inventory more accurately and speed up routine tasks. Start by deciding whether you need UPCs, EANs, SKUs, or QR codes. Then create your barcodes using the free generator or your POS system and print labels that scan reliably.
If you plan to sell through major retailers or marketplaces, you will need GS1-issued codes. For internal tasks, a free generator usually works well. Once you have a system in place, you will save time on stock counts, reduce errors, and improve the overall flow of your business.
If you would rather not juggle separate tools for barcodes and inventory, Square for Retail can handle both in one dashboard. You can create and print barcodes, receive stock, and track items until they sell, all inside your POS.
