How to Set Up a Barcode Inventory System
(2025 Guide)

The first step to building a barcode inventory system is to organize your product data in an inventory list spreadsheet, such as Excel, CSV files, or Google Sheets.

List each product with its name, SKU, variant (like size or color), categories, purchase cost, and quantity. This file will become the foundation for your barcode labels and inventory software integration.

Make sure your columns are clearly labeled and consistent—this will save you headaches later. You'll use this spreadsheet to generate and assign barcodes for every product variant you track.

Every item you stock needs a unique identifier. Usually, that's an SKU. Sometimes, it might be an SKU plus a batch number if you need more detail. This information can be encoded into a barcode.

Scan that barcode, and your system instantly knows what the item is. It keeps track of details, updates counts in real-time, and cuts down on mistakes when you sell, ship, or count inventory.

There are two main barcode formats: linear (1D) types like UPC, EAN, and Code 128, and 2D codes such as QR codes. So how do you choose the best one for inventory tracking?

For many businesses, especially small businesses and warehouses, Code 128 is a popular choice. It's free to use, widely supported by inventory systems, and offers high-density encoding—ideal for SKUs, batch numbers, or even bin locations in the inventory system.

Most standard scanners can read Code 128 easily, which helps keep your equipment costs lower. Plus, Code 128 codes don't have to be a specific length. You can make your item codes as long or short as you need.

However, keep this in mind: If you sell through big players like Amazon or Walmart, or if you might sell internationally later on, you should look into getting official GS1 barcodes (like GTINs or UPCs). You'll need to register for these. They are required to work smoothly with major retailers and across different supply chains.

Once you've decided on the barcode type, you'll need software to generate and manage your inventory barcodes.

For businesses managing a limited number of SKUs, Excel combined with a free online barcode generator can be a practical solution for simple inventory tracking.

Of course, most businesses will still need to rely on dedicated inventory software. Some include built-in barcode creation tools, while others allow integration with third-party label design software like Bartender, and NiceLabel.

Look for features of inventory software like:

Barcode Generation
Customizable barcode templates
Batch printing
Database integration
Mobile-friendly interfaces

Alright, time to create your barcodes. You can use a free online barcode generator tool or specific barcode software for this. Then, print them out using a professional barcode printer.

Inventory software makes this step faster. You can upload your inventory list, weed out items you no longer sell (like discontinued or old products), and then print barcode labels for everything in batches.

Take the iDPRT iT4X, for instance. It's a high-performance 4-inch thermal transfer label printer. Perfect for making inventory tags, rack labels, and shelf labels. It handles continuous high-volume printing without overheating or slowing down, producing sharp, durable barcodes that scan perfectly.

The iT4X works with various thermal transfer label materials – paper, polyester, and synthetics. This thermal barcode printer connects via USB, Serial, Ethernet, and optional Wi-Fi and Bluetooth.

Plus, it comes with BarTender software. That means you're all set to design custom labels and automate your printing.

Small business or startup using Excel for inventory? No problem. Just import your inventory data into the barcode software. Batch printing your product barcodes becomes a breeze – super handy!

It's easy to integrate into any inventory system, from basic Excel setups to full WMS platforms. Ideal for businesses that demand speed, accuracy, and flexibility on the warehouse floor.

Labels printed? Great. Next up: carefully put them on your products.

This might sound basic, but where you place the label is key. Make sure it's easy to see and reach for quick, accurate scans. This is especially true in busy spots like warehouses or retail stockrooms.

Try not to stick labels on curved bits, rough surfaces, or along seams. Scanners often have trouble reading them there.

You're almost done setting up your barcode system! Soon you'll be tracking, checking, and fine-tuning your inventory like a pro.

Important: Remember to do this for all new products that arrive.

Barcodes are only useful if you have a scanner to read them—without it, they're just lines on a label. Barcode scanning equipment have various types, each suited for different operational needs:

• Smartphone + App: A smartphone with a barcode scanning app is ideal for small businesses or mobile inventory checks. It's cost-effective and easy to deploy, especially for low-frequency scanning tasks.
• Handheld Barcode Scanner: Faster, more accurate for routine warehouse tasks (receiving, shipping, restocking). Wireless ones connect to tablets or PCs, so no messy cables. You can move freely around workstations and shelves.
• PDA Scanner: A rugged, all-in-one handheld device that scans barcodes, processes data, and connects wirelessly. Really useful for big jobs like order picking, stock counts, and real-time inventory tasks on the warehouse floor.

Using these scanners for your inventory barcodes gives you real-time tracking. You'll see stock move from arrival to dispatch, making everything clearer across your operations.