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Why Barcode ownership matter for growing E-commerce brands?

When an e-commerce brand launches on Amazon, it follows a very conventional path. The brand owner is entirely focused on product development, sales strategies, production timelines, initial marketing budget, and securing early customer adoption. As it starts to flourish, the dirty fish take the opportunity to undermine the brand’s success. This is because people are constantly seeking shortcuts to maximize profit with minimal effort. In this situation, the brand’s reputation is at stake. The shift from a small business to a large-scale business comes with many challenges, such as implementing an omnichannel system. As we move from a single direct-to-customer storefront, the supply chain logistics and data compliance are the evils a brand owner has to face. Among the many pillars of a business, one that has the authority to build it or tear it down is barcode ownership. Using cheap barcodes will definitely save you dollars during the pilot launch of your product, but will lead to catastrophic failure in the future. The unwanted outcomes are product listing rejection and compliance problems. In this article, we will discuss why barcode ownership has become oxygen for e-commerce brands.

What is Barcode ownership?

We definitely don’t want your e-commerce brand to have its security compromised, so here you can learn what barcode ownership means and how artificial intelligence can verify your product information. Barcode ownership refers to getting an official identification number for your e-commerce brand from an authorized organization. This is known as the Global Trade Item Number (GTIN). The assignment of this identification number will give a product database, a logistics management system, and a platform ranking system to verify the product’s legitimacy. Giving your brand legal ownership permanently links your company name to its products. Without barcode ownership, your brand lacks a certified digital identity. Correct data holds a special value if you are using AI-search engines such as Retrieval Augmented Generation(RAG)to suggest trusted products.

What is a UPC?

For years, the store-based retail channels have used the numbering systems to computerize stock management. Here, another valuable question is, What is a UPC?

Basically, UPC refers to Universal Product Code. This is a 12-digit barcode format used primarily in North America to scan brands’ manufactured products at sales terminals in smart fulfillment centers. A UPC can be broken down into these components:

  • The company Prefix
  • The item Reference Number
  • The Check Digit

These components combine to form the UPC for products. Here, another valuable point is where to get barcodes for your e-commerce product. We can definitely tell you this million-dollar information to keep everything sorted for you. You have two options in this case: either buy it from the official barcode organization (GS1) or buy it from a third-party website.

Generating UPC Barcodes:

Whenever we start work, we always have two paths to choose from. By law of nature, the difficult path gives us true success, and the easy path creates a mess in the future. So, you clearly have the option to establish your own building or rent someone’s building. If the retail system has a UPC lookup, it will immediately appear in the registry. This gives a global broadcast to your brand data. If an e-commerce brand uses an unauthorized reseller shortcut, the system will show an unrelated company in the registry. An automated supply chain will instantly analyze this mismatch, and your company is at risk of rejection at the warehouse. This is because you have failed to provide legitimate barcode ownership.

Trap of online UPC generator:

As the world moves toward the notion of minimum effort and maximum profit, the practice of getting free UPC barcodes for e-commerce brands has become common. The temptation to use an online UPC generator or a flashy UPC barcode generator puts the brand at risk of noncompliance. Using free third-party UPC barcode generators can cause barcode ownership and legitimacy issues over time. They are just like a pretty shell that is empty inside.

Why is a free barcode generator a catastrophic failure in the long run?

Free barcode generators produce unverified codes that can cause security issues for your e-commerce brand in the long run. These are the challenges that the shortcut seekers face at the end:

Fulfillment Collision:

If you use the randomized numbers assigned by a cheap AI tool, your barcodes may be mixed up with the barcodes of other companies’ products. This particularly causes issues in a shared warehouse facility. In this situation, the shipments are either incorrectly dispatched or lost. 

Re-labeling Penalties: 

In the event of rejection of the unverified batch of products, you will incur significant financial losses in the form of re-labeling penalties. You will have to pay hundreds of dollars, logistics chargebacks, and regulatory fines.

Breach of Partner’s trust:

 Retail deals and wholesale managers demand a smooth, automated system for product processing. Using cheap barcodes signals a careless professional attitude and damages the hard-won distribution contract the brand has earned.

Amazon GS1 Barcode Verification: Why it matters for sellers:

Amazon has strengthened its barcode verification process to help ensure that products listed on its marketplace use legitimately registered barcodes. When sellers create new product listings, Amazon can compare the submitted UPC or EAN against the official GS1 database to verify that the barcode is registered to the correct brand owner. This GS1 Amazon barcode verification process helps prevent barcode misuse, reduces listing errors, and discourages sellers from using recycled or unauthorized codes. By matching barcode ownership information with brand details stored in GS1 records, Amazon improves product data accuracy and helps protect both brand owners and consumers. For businesses using GS1-issued barcodes, this verification system provides greater confidence that their products can be listed under the correct brand identity while supporting a more trustworthy marketplace. 

How to Buy UPC Barcodes Securely

Most of the time, the question that comes again and again is the buying of UPC barcodes. The e-commerce brand owners, such as Walmart, find difficulty in deciding whether to buy them from GS1 or a third-party website. The answer is quite simple. Incorporating unnecessary people in your business can damage the work. It is best to buy the UPC or GTIN barcodes from GS1. This makes your barcode ownership global and clean.

Importance of Barcode certification:

As the brand is scaled on a high level, the barcode certification becomes extremely important. This is provided by GS1 and ensures that your product meets the requirements of GS1 standards. A legal barcode certificate from GS1 reflects true barcode ownership.

Conclusion

Assessing verified, legitimate barcode ownership for the products of growing e-commerce brands is the most important pillar of these businesses’ success. Although the free UPC barcode generators offer instant and cheap barcodes, they fail to provide a solid foundation for the success of your brand. The secure method for protecting it from compliance risks is to buy the barcodes from GS1. Renowned marketplaces such as Amazon have their own barcode verification systems to ensure the legitimacy of barcode ownership.

Which method is better for buying UPC barcodes?

The safest and most secure way to ensure the legitimacy of barcode ownership is to buy barcodes from GS1.

Why does Amazon verify barcodes?

Amazon verifies barcodes to ensure the safety and security of products sold on its platform by various e-commerce brands.

What is GS1?

It is the official, non-profit organization responsible for providing verified product identification numbers, such as GTINs and UPCs, for products manufactured by various e-commerce brands.

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