Imagine as the day winds down in your store and the last customer leaves. You look around at the elegant displays and racks, smile, then look down at your clipboard and prepare for the task of counting inventory.
You start at one end, manually counting each item, and note the quantities on your sheet, squinting in the dim light to guarantee you didn’t miss anything. The process is slow and tedious as you double-check and count again to ensure every item is accounted for. And just like that, your store has become an obstacle course.
But that could all change with a barcode management inventory system. If these logistical headaches resonate, it’s time for change. This post will showcase how barcode inventory management works, the top barcode software, and explain how to get started.
What is barcode inventory management?
Barcode inventory management is the practice of tracking your store’s products using barcodes and scanners. Barcodes are a unique pattern of black lines and spaces. When scanned, they reveal important information about a product, including its name, price, and quantity.
The system lets you manage stock by showing you what stock you have, what’s selling fast, and what you need to order more of.
Barcode inventory systems automate the tracking of products from the moment they enter your store to the moment they're sold. It provides accurate, real-time insights into your inventory, helping you make smarter decisions and keep your customers satisfied.
📚 Learn: Inventory Management: Everything You Need to Know (2024)
How a barcode inventory management system works
In retail, barcode inventory management systems streamline how you track and manage products.
Here’s how it works:
- Assigning barcodes: The system assigns a unique barcode to each product in your inventory. This barcode contains detailed information about the item, such as its SKU (Stock Keeping Unit), price, and description.
- Scanning at point of sale: When a customer purchases an item, the cashier scans the barcode at the checkout. This action automatically deducts the item from your inventory count in the system, providing real-time updates on stock levels.
- Receiving and updating inventory: Upon receiving new stock, you scan the barcodes of the incoming products. The system then updates your inventory quantities, ensuring your records are accurate and up-to-date.
- Stock monitoring and reordering: The system continuously monitors your inventory levels. When a product's quantity falls below a predetermined threshold, it can trigger an alert, prompting you to reorder it. This makes sure you never run out of bestsellers.
- Data analysis and reporting: Beyond just tracking inventory, the system can analyze sales trends and generate reports. This data helps you decide which products to stock up on and which ones to phase out.
📚 Learn: Automated Inventory Management Systems: Key Features and Benefits
Pros of a barcode inventory system
Whether you run a global ecommerce store or a small retail shop, implementing a barcode inventory system has several key benefits.
Streamlines operations
Barcode inventory management enhances both checkout and stock replenishment processes. Scanning barcodes is faster and more accurate than manual data entry, leading to quicker transactions and reduced queue times.
Plus, barcodes streamline your own internal inventory management processes, making it possible to scale up operations.
For example, Yann Max, Partner of Momo Lifestyle, explains that if you work with a 3PL, barcodes can ensure there’s a common language between retailers and the company.
“We can’t expect the 3PL to know our different products and their specifications as well as we do, and that’s why barcodes help to identify this,” he explains.
“One important point to facilitate scalability in the operation is to also use a separate barcode for your product’s unit packaging and its master carton packaging. This allows your 3PL to send full cartons of products to the warehouses of B2B customers, as well as single units of products to direct end consumers.”
Improves accuracy of inventory control
Scanning barcodes pulls up detailed product information, significantly reducing human errors in inventory tracking. This accuracy ensures that stock levels are consistently reliable, minimizing the risk of overstocking or stockouts.
Informs better decisions
The system provides valuable data on sales trends and inventory movement. Retailers can use this information to make informed decisions about product ordering, pricing strategies, and promotions.
Cons of barcode inventory system
No matter the inventory management system you choose, there are always a few drawbacks. Before jumping in, consider the main cons of using barcodes.
Upfront costs
Implementing a barcode inventory management system requires an upfront investment in hardware, software, and infrastructure. Retailers need to consider the cost-benefit ratio and ensure the investment aligns with their business scale and budget.
Training time
Your team will need to learn how to use the new system. This can take time and might slow things down at first. But once everyone's up to speed, it'll be smooth sailing.
Technical issues
Sometimes, technology can malfunction. Scanners might not read a barcode, or the software could have a glitch. It's important to have good tech support to fix any problems quickly.
How to organize inventory with barcodes
Ready to organize your inventory items with barcodes?
Here’s how to get started:
1. Generate barcodes for your system
Start by creating unique barcodes for each product in your inventory. You can use online barcode generators or specialized software to do this. Make sure each barcode corresponds to specific product information.
💡 TIP: Shopify’s free online barcode generator is fast and easy to use. In a matter of seconds, you can generate a new barcode to download or print.
2. Label your inventory
Once you have your barcodes, print them out and attach them to your products. Ensure the labels are secure and easily scannable. This step is key for accurate tracking and quick identification of items.
3. Get an inventory scanner
Invest in a reliable inventory scanner that can read your barcodes. Mobile apps or handheld scanners are a popular choice for their portability and ease of use. This tool will be essential for quick and efficient inventory management.
💡 TIP: It’s quick and simple to scan inventory using the Shopify mobile app. You can also assign a product barcode to an existing product in your online store or increase your product inventory quantity within the app.
4. Find an inventory software
Choose inventory management software that integrates with your barcode system. The software should allow you to track stock levels, monitor sales, and generate reports. Look for a user-friendly platform that fits your business needs.
5. Train employees on the system
Finally, train your employees on how to use the barcode system and inventory software. Make sure they understand how to scan items, update inventory, and troubleshoot any issues. Proper training helps ensure a smooth transition and efficient ongoing operations.
Barcode inventory management apps
To help you choose a barcode software that’s right for your business, here are three easy-to-use apps.
1. Quick Scan - Barcode Scanner
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Quick Scan is a user-friendly barcode scanner app with a simple setup. The app lets users quickly scan and decode barcodes, making it an ideal tool for retailers getting started.
The app also makes it simple to add and deduct inventory quantity in-store and transfer stock between locations.
Key features:
- Quickly scan multiple barcode formats, including QR codes, UPC, EAN, and more
- Track inventory levels, organize products, and update stock information in real time
- Export scan data to CSV files
- View historical records of all scanned items for easy reference and tracking
- Move inventory between store or warehouse locations
2. EasyScan: SKU & Barcode
The best part of EasyScan is that it’s compatible with all scanners. As well as generating printable barcodes, you can use the app to create SKUs too.
Key features:
- Scan SKUs and multiple barcode formats, including QR codes, UPC, EAN, and more
- Generate custom barcode labels
- See the exact product bin location
- Monitor inventory levels in real time
- Access detailed product information including descriptions, prices, and stock levels
- Export scan data and inventory reports to CSV or Excel files
3. iPacky
iPacky is a Shopify app designed to streamline the order fulfillment process. It offers tools for barcode scanning, batch picking, and packing, helping retailers reduce errors and increase efficiency in their packing and shipping operations.
Key features:
- Supports batch picking and printing of pick lists or packing slips
- Provides bin locations
- Shares optimized picking routes for faster and more organized picking
- Supports bundles by ensuring all items in kits or bundles are correctly picked and packed
- Customizes workflow requirements
- Provides multi-user access
Tap into barcode inventory management for your store
Relying on barcodes is an easy way to streamline your inventory control. Instead of wondering whether you have enough stock in each location, a quick barcode scan can show you exact stock levels and bin locations.
Whether you’ve just set up shop or run a thriving online store, barcode inventory control will save time and help you scale.
Barcode inventory management FAQ
How do I create a free inventory barcode?
Creating a free inventory barcode is simple. Here's how you can do it:
- Choose a barcode generator: Choose a free online barcode generator app.
- Enter product details: Add the information you want on the barcode, like product name or price.
- Generate and download: Click to create your barcode, then download it for printing or digital use.
What is the difference between SKU and barcode?
SKU (Stock Keeping Unit) and barcodes are both for tracking products, but they serve different purposes:
- SKU: A unique code created by a retailer to identify and track a specific product. SKUs are used internally in inventory management to differentiate products based on characteristics like size, color, or style.
- Barcode: A visual, machine-readable representation of data. Barcodes are standardized for global use and can be scanned to quickly retrieve product information.
SKUs are for internal product tracking, while barcodes are for universal scanning and identification.
Is there a free app to scan barcodes for inventory?
Yes, there are free apps available for scanning barcodes for inventory. Most apps have free trials or basic plans. They also have paid subscriptions for more extensive use.
There are several apps available on the Shopify App Store that can help you scan barcodes for inventory management:
- EasyScan: SKU & Barcode: This app is compatible with all scanners that have a USB connection. It lets you scan retail barcode labels, generate barcodes and SKUs, and print custom labels. It offers a 10-day free trial, with the Basic plan starting at $9.99/month.
- Quick Scan - Barcode Scanner: This app simplifies inventory updates and transfers between locations. It allows users to create and fulfill orders by scanning product barcodes. The app offers a 14-day free trial, and the Basic plan starts at $5/month.
- iPacky: Designed for order fulfillment and inventory management, iPacky is compatible with all scanners. It features a barcode and SKU generator, barcode label printing, and supports multi-order picklists. Use it to conduct inventory checks and updates quickly with bin locations.
How do I set up a barcode inventory system with Shopify?
To set up a barcode inventory system with Shopify, follow these steps:
- Choose your barcode type: Decide on the barcode type that best suits your products. Common types include UPC, EAN, and QR codes.
- Generate barcodes: Use a barcode generator tool to create barcodes for each product. Shopify's Retail Barcode Labels app can help you generate and print barcode labels.
- Assign barcodes to products: In your Shopify admin, go to the product's details page and assign the generated barcode to the corresponding product.
- Set up barcode scanning hardware: Choose between handheld barcode scanners or mobile barcode scanning apps. Handheld scanners can be wired or wireless, and mobile apps can use your device's camera for scanning.
- Integrate barcode scanning with inventory management: Use the Shopify mobile app or a compatible barcode scanner to scan products and update inventory levels in real time.
- Train your staff: Ensure your team is familiar with the barcode scanning process and the inventory management system.
- Test your system: Before fully implementing the barcode inventory system, test it thoroughly to ensure it works as expected.
