Early Access: Get 3 Months Free — Limited SpotsJoin now
Implementation Guide

How to Set Up a Barcode System for Your Business

Barcode scanning transforms inventory management from slow manual data entry to instant, accurate updates. This guide walks you through everything you need: hardware, software, labels, and implementation steps.

Last updated: 2026-01-03

Why Your Business Needs Barcode Scanning

Even a simple barcode system dramatically improves accuracy and speed.

10× Faster

Scan in under 1 second vs. typing SKUs manually. Process inventory movements in a fraction of the time.

99.9% Accurate

Eliminate typos and data entry errors. The barcode encodes the exact product identifier every time.

Easy Training

Anyone can learn to scan barcodes in minutes. No memorizing product codes or navigating complex screens.

Real-Time Data

Inventory updates instantly when scanned. Always know what you have, where it is, and when it moved.

What You Need for a Barcode System

A complete barcode system has four components. You may already have some.

1. Barcodes

The encoded symbols on your products. Generated from your SKU/product codes using software.

Common Types

  • Code 128 (recommended)
  • Code 39 (simpler)
  • UPC/EAN (retail)

2. Labels & Printer

Print barcode labels to affix to products, shelves, or bins. Options range from regular printers to dedicated label printers.

Options

  • Avery labels + inkjet
  • Thermal label printer
  • Pre-printed labels

3. Barcode Scanner

Reads the barcode and sends the data to your software. Phone cameras work for basic use; dedicated scanners for volume.

Options

  • Smartphone camera
  • USB wired scanner
  • Bluetooth wireless

4. Inventory Software

Receives scanned barcodes, looks up products, and updates inventory. This is what makes scanning useful.

Key Features

  • Barcode generation
  • Mobile scanning app
  • Real-time sync

Step-by-Step Implementation

Follow these steps to get your barcode system up and running.

1

Choose Your Inventory Software

Start with software that supports barcode scanning, generation, and mobile apps. The software is the brain of your system—barcodes and scanners are just input devices.

  • Look for built-in barcode generation
  • Ensure mobile app with camera scanning
  • Check that it supports your barcode type (Code 128 is standard)
2

Set Up Your Product Catalog

Enter your products into the software with unique SKUs. These codes become your barcodes. If you sell products with existing UPC codes, you can use those directly.

  • Use consistent SKU naming (e.g., WIDGET-001, TOOL-HAMMER-SM)
  • Import existing data via CSV if available
  • Add photos for visual confirmation when scanning
3

Generate and Print Barcode Labels

Use your inventory software to generate barcodes from your SKUs. Print labels in batches and apply them to products or shelves.

  • Start with high-volume items first (apply 80/20 rule)
  • Choose label size appropriate for your products
  • Consider durability needs (paper vs. synthetic)
  • Print a few test labels before batch printing
4

Choose Your Scanning Hardware

Match your scanner to your volume and environment. Phone scanning is free and works for light use; dedicated scanners are faster for high volume.

Scanner TypeBest ForCost
Smartphone app<50 scans/day, mobile useFree
USB wired scannerDesk/checkout, high volume$30-100
Bluetooth wirelessWarehouse, mobile + speed$80-200
Rugged handheldHarsh environments$300+
5

Test and Train Your Team

Test scanning with a few products before full rollout. Train staff on basic workflows: receiving inventory, picking orders, cycle counting.

  • Test scan distance and angles
  • Verify products update correctly in software
  • Create simple workflow guides (scan to add, scan to remove)
  • Assign scanning responsibilities to specific roles
6

Roll Out Gradually

Do not try to label everything at once. Start with one product category or location. Expand as you refine your process.

  • Week 1: Top 20 high-volume products
  • Week 2-3: Expand to full category
  • Month 2: Add remaining products as handled
  • Ongoing: Label new products as they arrive

Choosing the Right Barcode Type

Most small businesses should use Code 128 for internal inventory. Here is when to use other types.

Code 128 (Recommended)

Best for internal inventory

  • Encodes letters, numbers, and symbols
  • Compact and high-density
  • Supported by all scanners
  • Ideal for SKUs like "TOOL-HAMMER-SM"

Code 39

Simple, widely compatible

  • Letters, numbers, and a few symbols
  • Larger than Code 128 (less dense)
  • Easy to read, very reliable
  • Good for labels with limited space

UPC / EAN

Retail product codes

  • UPC: 12 digits (North America)
  • EAN: 13 digits (International)
  • Required for products sold in retail stores
  • Requires registration with GS1 for unique codes

QR Codes

2D codes with more data

  • Holds URLs, detailed product info
  • Scannable by any smartphone
  • Requires 2D-capable scanner (or phone)
  • Good for linking to product pages or manuals

Common Mistakes to Avoid

Learn from others' mistakes when implementing barcode systems.

Trying to Label Everything at Once

This overwhelms staff and delays the benefits. Start with top movers and expand gradually.

Poor Label Placement

Labels hidden, damaged, or at awkward angles slow down scanning. Place consistently where scanners can easily read them.

Ignoring the Software

Barcodes without proper inventory software are just labels. The software makes scanning useful by updating inventory in real time.

Cheap Labels in Harsh Environments

Paper labels fade in sunlight and peel in moisture. Invest in synthetic labels for outdoor, warehouse, or refrigerated storage.

Set Up Barcode Scanning with StockZip

StockZip includes everything you need: barcode generation, mobile scanning, label printing, and real-time inventory updates. Start scanning in minutes.

  • Generate barcodes from SKUs
  • Scan with phone or Bluetooth scanner
  • Print labels in batches
  • Real-time inventory sync

Need help? We've got answers

Common questions about scanning, offline mode, pricing, and migration.

A basic barcode system can start under $100: a free barcode app on your phone plus printed labels. A more complete setup with a dedicated scanner ($50-200) and label printer ($100-300) costs $150-500. Cloud inventory software adds $0-50/month depending on the plan.