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How Do Barcodes Work? History, Technology, and How To Purchase

The journey of barcodes from an innovative idea to a ubiquitous component in inventory management and sales tracking is a fascinating tale of technological evolution, legal battles, and strategic rebranding. This overview explores the key milestones in developing barcodes, highlighting their impact on sales, marketing, and global commerce.

A barcode is a method of representing data in a visual, machine-readable form. Initially developed to automate supermarket checkout systems, their application has expanded across retail, manufacturing, logistics, healthcare, and more. At its core, a barcode consists of a series of parallel lines (bars) and spaces of varying widths that represent numbers and other symbols. Optical scanners, commonly known as barcode readers, can scan and interpret these patterns.

How Do Barcodes Work?

The process begins with creating a barcode representing specific information, such as a product ID. This is achieved by using a barcode symbology, a set of rules defining the graphical representation of characters and numbers.

How to Read Barcodes

Barcodes are categorized into two main types: linear (or 1D) and matrix (or 2D) barcodes.

  • Linear Barcodes: These are the most common type, consisting of a series of vertical lines and spaces. Examples include UPC (Universal Product Codes) and EAN (European Article Numbers), widely used in retail.
  • Matrix Barcodes: Also known as 2D barcodes, these can hold more information in a smaller space by using patterns of squares, dots, and other geometric shapes. QR codes are a popular example, offering versatility for marketing campaigns by linking directly to websites, videos, and other digital content.

When a barcode scanner shines a light on the barcode, it detects the reflected light patterns. The scanner then converts these patterns into digital data sent to a computer or a sales system, which interprets the data based on the specific symbology used.

There are two primary types of Barcodes in use in retail. All types include a check digit, the last number calculated from the others to verify the barcode’s accuracy.

UPC

How a UPC Barcode Works

A UPC-A barcode includes a 12-digit number: the first six digits are the manufacturer’s identification number, the next five digits are the item number assigned by the manufacturer, and the last digit is a check digit.

EAN

How a EAN Barcode Works

An EAN-13 barcode consists of a 13-digit number: the first 2-3 digits represent the country code, the next 4-5 digits are the manufacturer code, followed by a 5-digit product code, and the final digit is a check digit for error detection.

History of Barcodes

Barcode technology has a relatively recent history and a fascinating origin story that traces back to the need to track railroad cars across the United States.

Barcodes: A History of Barcodes and How They Work

The 1950s: The Invention of Barcodes

  • 1951: Barcodes were first invented by Norman Woodland and Bernard Silver, inspired by Morse code’s simplicity and effectiveness in transmitting communications through dots and dashes. This inspiration led to creating a system that could encode information in visual patterns that machines could read.

I poked my four fingers into the sand and for whatever reason — I didn’t know — I pulled my hand toward me and drew four lines. I said: Golly! Now I have four lines, and they could be wide lines and narrow lines instead of dots and dashes.

Norman Woodland, Interviewed by the Smithsonian

The 1960s: Early Applications of Barcodes

  • 1967: One of the earliest practical applications of barcode technology was in the U.S. freight railroad system. Railcars had placards featuring barcodes that identified them as they moved through rail yards and facilities. The KarTrak system was made a requirement in North America. This early system significantly improved the tracking and sorting of cars but faced reliability issues, primarily due to environmental factors like dirt obscuring the barcodes, which led to it being abandoned.

The 1970s: The Dawn of Barcodes

  • 1973: The Uniform Grocery Code Council (UGPCC) recommended the adoption of the UPC barcode symbol, setting the stage for standardized product identification.
  • 1974: On June 26, 1974, the first product with a UPC barcode was scanned at Marsh Supermarket in Troy, Ohio, marking the beginning of a new era in retail. This first scanned product, a pack of Wrigley’s Juicy Fruit gum, symbolized the practical application of barcodes.
wrigley gum barcode
Source: GS1

The 1980s: Expansion and Standardization of Barcodes

  • 1984: The UPCC evolved into the Uniform Code Council (UCC), reflecting a broader focus on uniform communication standards across industries, not just groceries.

The 1990s: Technological Advancements of Barcodes

  • 1994: The QR code (Quick Response Code) was invented in 1994 by a Japanese company called Denso Wave, a subsidiary of Toyota. It was designed by Masahiro Hara and his team to track vehicles and parts during the manufacturing process more quickly and efficiently than traditional barcodes.

The 2000s: Legal Challenges and Strategic Mergers

  • 2002: The UCC’s move to a lease-only option for barcode prefix numbers sparked controversy, leading to a class-action lawsuit that they lost, resulting in a settlement and changes to prefix ownership rights.
  • 2005: The merger of the UCC with EAN International to form GS1 represented a major milestone in barcode standardization, making GS1 the primary global barcode provider.
  • 2008: Amazon’s decision to require barcodes for products sold on its platform underscored the critical role of barcodes in modern inventory and sales management systems. Amazon’s involvement with GS1 further emphasized the barcode’s significance in global commerce.

The 2010s: Global Trade Item Number Adoption

  • 2012: The introduction of the GTIN by GS1 to identify product formats marked a key development in barcode technology, facilitating more accurate and efficient global trade.
  • 2016: eBay’s adoption of GTIN requirements highlighted the expanding role of barcodes in e-commerce, enhancing product tracking and customer transactions.

The 2020s: Barcodes Are Everywhere!

  • 2021: Barcodes have celebrated over five decades of facilitating inventory management and sales tracking.

The history of barcode technology illustrates a journey from an innovative concept inspired by Morse code to a critical component of global commerce and logistics. Its ability to simplify and streamline the tracking, management, and operation processes has made it indispensable in various industries, demonstrating the profound impact of technological advancements on efficiency and productivity.

Barcode readers have evolved significantly, from requiring manual movement across the code to using stationary laser scanners that can read barcodes without moving the item. Additionally, photo-based barcode readers, like those used for scanning QR codes on smartphones, represent another advancement.

Barcodes: Buying vs Leasing

Companies must ensure their barcodes are globally unique to prevent conflicts and issues in the supply chain. Companies lease or buy barcodes to ensure no conflicts with other products’ identification. Leasing often involves an annual fee and is akin to a subscription service where companies maintain their identifier under the management of the issuing organization, such as GS1. Buying barcodes is often possible as a one-time purchase but must be done through a reputable barcode sales outlet.

Bar Codes Talk offers a comprehensive suite of barcode services tailored for retail and online store needs, ensuring smooth integration with platforms like Amazon and widespread retailer acceptance. Their offerings emphasize authenticity, ownership, and utility, including:

  • Instant Digital Delivery: Quick access to purchased barcodes.
  • 100% Authentic GS1 Barcodes: Guarantees genuine GS1 US-originated barcodes.
  • Beware of Fakes: Tips on avoiding inauthentic resellers.
  • UPC & EAN Barcodes Included: Both formats provided at no extra cost.
  • EPS & JPEG Images Included: High-resolution barcode images (EPS, JPEG formats).
  • Certificate of GTIN Assignment: Official proof of barcode ownership.
  • Excel & PDF Spreadsheets: Organized formats for tracking assigned numbers.
  • Works for Amazon Guaranteed: Compatibility assurance with Amazon.
  • Perfect for Retail & Online Stores: High acceptance rate among retailers.
  • No Renewal Fees or Hidden Charges: One-time payment for perpetual ownership.

Bar Codes Talk offers authentic GS1 UPC and EAN barcodes for various retail and online store needs. For more additional information and to explore all their services:

Visit Bar Codes Talk

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Douglas Karr

Douglas Karr is a fractional Chief Marketing Officer specializing in SaaS and AI companies, where he helps scale marketing operations, drive demand generation, and implement AI-powered strategies. He is the founder and publisher of Martech Zone, a leading publication in marketing technology, and a trusted advisor to startups and enterprises alike. With a track record spanning more than $5 billion in MarTech acquisitions and investments, Douglas has led go-to-market strategy, brand positioning, and digital transformation initiatives for companies ranging from early-stage startups to global tech leaders like Dell, GoDaddy, Salesforce, Oracle, and Adobe. A published author of Corporate Blogging for Dummies and contributor to The Better Business Book, Douglas is also a recognized speaker, curriculum developer, and Forbes contributor. A U.S. Navy veteran, he combines strategic leadership with hands-on execution to help organizations achieve measurable growth.

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