Choosing the Right Barcode Type for Your Business

A comprehensive guide to selecting the perfect barcode format for your specific needs. Compare features, benefits, and use cases.

Selecting the right barcode type is crucial for operational efficiency, cost management, and compatibility with existing systems. With dozens of barcode formats available, each designed for specific applications, making the wrong choice can lead to scanning failures, increased costs, and integration problems. The good news? Once you understand the basics, choosing becomes straightforward.

This guide will help you understand the different barcode types and choose the one that best fits your business needs. We'll walk through the key decisions step by step.

Understanding Barcode Categories

Barcodes fall into two main categories, each with distinct characteristics and use cases.

Different types of barcodes comparison
Comparison of 1D linear barcodes and 2D matrix codes

1D (Linear) Barcodes

Traditional barcodes consisting of vertical lines of varying widths. They store data horizontally and are read by laser or camera-based scanners moving across the code.

Advantages:

  • Low printing costs
  • Work with inexpensive scanners
  • Widely supported infrastructure
  • Easy to print on any printer
  • Reliable even when slightly damaged

Limitations:

  • Limited data capacity (typically 20-25 characters)
  • Require line-of-sight scanning
  • Can only encode numbers or basic alphanumerics
  • No error correction

Barcode structure diagram
Understanding the components and structure of a barcode

2D (Matrix) Barcodes

Modern barcodes using patterns of squares, dots, or other shapes arranged in a grid. They store data both horizontally and vertically.

Advantages:

  • High data capacity (thousands of characters)
  • Built-in error correction
  • Can be scanned from any direction
  • Smaller physical size for same data
  • Can encode complex data types

Limitations:

  • Require camera-based scanners
  • Higher printing resolution needed
  • More processing power required
  • Larger codes can be harder to scan

UPC (Universal Product Code)

Best For: Retail products in North America

Data Capacity: 12 digits (UPC-A) or 6-8 digits (UPC-E)

Use Cases:

  • Consumer packaged goods
  • Point-of-sale systems
  • Inventory management
  • Product identification

Requirements:

  • Must be purchased from GS1
  • Globally unique identifiers
  • Required for major retailers

Pros:

  • Universal retail acceptance
  • Linked to global product database
  • Consumer-recognized format
  • Excellent supply chain integration

Cons:

  • Ongoing costs for new products
  • Limited to numeric data
  • Cannot be generated freely

Barcode on product packaging
UPC and EAN barcodes on retail product packaging

EAN (European Article Number)

Best For: International retail products

Data Capacity: 13 digits (EAN-13) or 8 digits (EAN-8)

Use Cases:

  • Products sold outside North America
  • International distribution
  • Multi-region marketing
  • Global supply chains

Similar to UPC but:

  • Includes country code
  • More common internationally
  • Required for European retailers
  • Compatible with UPC systems

Code 128

Best For: Logistics and warehouse management

Data Capacity: Variable length, full ASCII character set

Use Cases:

  • Shipping labels
  • Package tracking
  • Internal inventory
  • Serial number encoding
  • Healthcare applications

Pros:

  • High data density
  • Encodes letters, numbers, symbols
  • No licensing required
  • Excellent for logistics

Cons:

  • More complex than UPC/EAN
  • Requires compatible scanners
  • Longer codes for more data

Barcode in warehouse environment
Code 128 barcodes used in warehouse and logistics operations

Code 39

Best For: Non-retail identification and tracking

Data Capacity: Variable length, alphanumeric plus some symbols

Use Cases:

  • Government and military
  • Automotive industry
  • Healthcare patient wristbands
  • Library systems
  • Asset tracking

Pros:

  • Easy to implement
  • Self-checking format
  • Widely supported
  • No licensing fees

Cons:

  • Lower density than Code 128
  • Limited character set
  • Longer codes required

ITF (Interleaved 2 of 5)

Best For: Carton and case labels

Data Capacity: Variable length, numeric only

Use Cases:

  • Corrugated cardboard boxes
  • Distribution packaging
  • Wholesale shipping
  • Warehouse pallets

Pros:

  • Excellent for rough surfaces
  • Good print tolerance
  • Compact for numeric data
  • Cost-effective

Cons:

  • Numbers only
  • Even number of digits required
  • Can be misread if damaged

QR Code (Quick Response)

Best For: Marketing, URLs, and versatile applications

Data Capacity: Up to 7,089 numeric or 4,296 alphanumeric characters

Use Cases:

  • Marketing campaigns
  • Website links
  • Contact information
  • WiFi credentials
  • Payment systems
  • Event tickets

Pros:

  • Extremely popular and recognized
  • High error correction
  • Smartphone compatible
  • No licensing required
  • Can be customized visually

Cons:

  • Requires camera scanner
  • Can be exploited for phishing
  • Larger codes harder to scan

QR code menu in restaurant
QR codes used for contactless restaurant menus and ordering

Data Matrix

Best For: Small item marking and electronics

Data Capacity: Up to 2,335 alphanumeric characters

Use Cases:

  • Electronic component marking
  • Pharmaceutical tracking
  • Circuit board identification
  • Small products
  • Direct part marking

Pros:

  • Very compact for small spaces
  • Excellent error correction
  • Can be laser etched
  • ISO/IEC standard

Cons:

  • Less consumer recognition
  • Requires quality printers
  • Not ideal for large items

PDF417

Best For: High-volume data storage and documents

Data Capacity: Up to 1,850 alphanumeric characters per symbol

Use Cases:

  • Driver's licenses
  • Airline boarding passes
  • Inventory management
  • Shipping labels
  • Government documents

Pros:

  • Large data capacity
  • Good error correction
  • Can be scanned with linear scanners
  • Public domain format

Cons:

  • Larger physical size
  • More complex printing
  • Requires more processing

Aztec Code

Best For: Transportation and ticketing

Data Capacity: Up to 3,832 numeric or 3,067 alphanumeric characters

Use Cases:

  • Train and bus tickets
  • Airline boarding passes
  • Event access control
  • Government applications

Pros:

  • No quiet zone required
  • Efficient for small symbols
  • Public domain format
  • Good error correction

Cons:

  • Less common than QR codes
  • Requires specific scanners
  • Limited software support

Decision Framework

For Retail Products

Use: UPC (North America) or EAN (International)

You have no choice here - major retailers require GS1-issued codes. Budget $250-$1,000+ for initial GS1 company prefix depending on how many products you'll have. Once you have your codes, generate production-ready barcodes with our EAN-13 generator or UPC-A generator.

For Internal Inventory and Assets

Use: Code 128 or Code 39

These codes give you flexibility and require no licensing. Code 128 offers better density, while Code 39 is simpler to implement.

For Shipping and Logistics

Use: Code 128 or GS1-128

Code 128 is the industry standard for shipping labels. GS1-128 adds standard application identifiers for enhanced supply chain visibility. Create shipping labels quickly with our Code 128 barcode generator.

For Small Items or Electronics

Use: Data Matrix

When space is limited, Data Matrix provides the best combination of small size and data capacity. Generate compact Data Matrix codes with our Data Matrix generator - perfect for PCB marking and small component tracking.

For Marketing and Customer Engagement

Use: QR Codes

Universal smartphone compatibility makes QR codes the obvious choice for connecting physical media to digital content. Our free QR code generator lets you create codes for URLs, contact information, WiFi credentials, and more in seconds.

For Documents and Credentials

Use: PDF417

Widely accepted for official documents, especially in transportation and government applications.

For Outdoor or Harsh Environments

Use: QR Code or Data Matrix

Both offer excellent error correction, allowing them to be scanned even when partially damaged or dirty.

Cost Considerations

Initial Setup Costs

  • UPC/EAN: $250-$1,000+ for GS1 company prefix
  • Code 128/39: Free to generate
  • QR Codes: Free to generate
  • 2D Codes: Free to generate

Per-Unit Printing Costs

  • 1D Barcodes: $0.001-0.01 per label
  • 2D Barcodes: $0.01-0.05 per label (higher resolution required)

Scanner Costs

  • Laser Scanners (1D only): $50-500
  • Linear Imagers (1D + some 2D): $100-800
  • 2D Imagers: $200-1,500+
  • Mobile Devices: $0 (built-in cameras)

Implementation Best Practices

Testing Phase

  1. Generate sample codes
  2. Test with your existing scanners
  3. Verify with your software systems
  4. Test in real-world conditions
  5. Check integration with partners
  • Use minimum 300 DPI for 1D codes
  • Use 600+ DPI for small 2D codes
  • Ensure high contrast (dark on light)
  • Test various print methods
  • Consider environmental durability

Size Guidelines

  • UPC/EAN: 80-200% of nominal size
  • Code 128: Minimum 0.25" height
  • QR Codes: Minimum 0.8" × 0.8" for arms-length scanning
  • Data Matrix: As small as 0.1" × 0.1" for close-range scanning

Future-Proofing

  • Choose widely-supported standards
  • Consider data capacity growth
  • Evaluate scanner compatibility
  • Plan for system upgrades
  • Document your choices

Conclusion

The right barcode type depends on your specific application, budget, and technical requirements. While retail products require standardized UPC-A or EAN-13 barcodes, internal operations offer more flexibility. Modern businesses often use multiple barcode types: UPC/EAN for products, Code 128 for shipping, and QR codes for marketing.

Start with the simplest solution that meets your needs, and remember that barcode technology is mature and stable - your choice today will likely serve you well for years to come.

Testing Your Barcodes: Once you've generated your barcodes, verify they scan correctly with our free barcode scanner. It supports all major formats - EAN, UPC, Code 128, QR codes, Data Matrix, PDF417, and more - making it easy to test your codes before production.

Creating Your Barcodes: Visit our barcode generator to create professional barcodes in any format. Choose from 15+ barcode types, customize appearance, and download as SVG, PNG, or PDF - all completely free with no watermarks or limitations.

8 min read

Frequently Asked Questions

What's the difference between 1D and 2D barcodes?
1D barcodes store data horizontally in varying line widths and can hold 20-25 characters. 2D barcodes store data in both dimensions and can hold thousands of characters. 1D codes are cheaper to print, while 2D codes offer more functionality.
Can I use any barcode type for retail products?
No, retail products typically require UPC (in North America) or EAN (internationally) codes. These must be purchased from GS1, the global barcode authority. Using non-standard codes will cause problems at retail checkout.
Do I need special permission to use barcodes?
For retail UPC/EAN codes, yes - you must purchase them from GS1. For internal use barcodes like Code 39, Code 128, or QR codes, no permission is needed. You can generate and use them freely within your organization.