The True Cost of Cheap Barcodes

For many small businesses, especially startups launching their first product, the idea of saving money on barcodes seems attractive. Online resellers advertise UPCs and EANs for just a few dollars each, compared to the higher upfront fees charged by GS1, the global standards organization. At first, these bargain options feel like a shortcut to getting products labeled and ready for retail. The reality, however, is very different. Cheap barcodes often come with hidden costs that can postpone launches, cause packaging waste, and damage a brand’s credibility with retailers and marketplaces (learn how courier services and logistics providers maintain operational credibility in our feature on Canada’s Top 5 Courier Brands.) What seems like a cost-saving measure at the beginning often becomes one of the most expensive mistakes a new brand can make.

Why brands fall for cheap barcodes

The appeal of inexpensive barcodes usually stems from two factors: cost and convenience. For new sellers testing an idea, spending hundreds of dollars on GS1 licensing can feel unnecessary. Resellers, meanwhile, promise instant delivery of codes that look identical to official ones. Many first-time entrepreneurs assume that as long as the bars can be scanned, they will work anywhere. This assumption is misleading because retailers and marketplaces no longer rely on surface-level scannability. Instead, they validate identifiers against GS1’s global database to confirm ownership and legitimacy. Without that verification, the barcode may as well be invisible to the systems that matter most.

Hidden costs that come back to hurt

One of the biggest risks of cheap barcodes is product launch delays. Amazon, Walmart, and other major retailers check UPCs against GS1 records. Products tied to numbers that do not match your company name will be rejected. A failed listing can stall sales for weeks. Beyond delays, packaging waste is another common consequence. Once a code is printed on labels, boxes, or bottles, discovering that it is invalid means paying for a complete redesign and new production run. Even small packaging changes add up quickly, often erasing years of perceived savings.

There is also the issue of brand credibility. When a retailer sees mismatched or invalid identifiers, they often view the brand as unprofessional or unreliable. That perception can be harder to repair than a single product listing, affecting future opportunities for shelf space or distribution agreements. Internally, cheap barcodes create confusion as well. Duplicates and mismatched identifiers lead to errors in warehouses and inventory systems, causing mis-picks, incorrect shipments, and chargebacks from retail partners. What begins as a minor shortcut becomes a long-term operational headache.

Why GS1 legitimacy is the gold standard

GS1 is the international organization that assigns and manages GTINs, the unique numbers behind UPCs and EANs. A GS1 certificate connects those identifiers directly to your company name, giving retailers and marketplaces a reliable way to verify ownership. This proof of authenticity is what distinguishes a legitimate identifier from one purchased through a reseller. Without it, the numbers printed on your packaging may look valid but fail compliance checks.

Industry resources, such as this guide on GS1 certificates, explain how official documentation provides certainty during onboarding and ensures that your brand’s identifiers are recognized as authentic across retail systems. Having this in place eliminates doubts, prevents costly delays, and builds long-term trust with trading partners.

Real-world examples of cheap barcode failures

In 2016, Amazon formally updated its policies to require UPCs that match GS1 records. Sellers who had purchased inexpensive numbers from resellers saw their listings suppressed or removed altogether. Many were forced to repackage products and relist them, losing time and revenue in the process.

Walmart Marketplace follows a similar approach. The company requires sellers to provide UPCs that can be validated through GS1’s database, and listings tied to unverified numbers are routinely rejected. Small businesses relying on cheap barcodes have found their applications stalled until they could prove ownership with a GS1 certificate.

The food and beverage sector provides another cautionary example. Traceability and recall procedures depend on accurate GS1 identifiers to track products across the supply chain. Industry groups have flagged instances where duplicate or invalid barcodes complicated recalls, emphasizing the risks of bypassing GS1. These cases highlight that cheap barcodes are not just a compliance issue—they can also threaten consumer safety and public trust.

How to avoid the trap

The simplest way to avoid the pitfalls of cheap barcodes is to source identifiers directly from GS1 or authorized partners. Treat barcodes as a core part of your brand infrastructure, not as a disposable accessory. Building your barcode strategy into product development from the start helps prevent expensive redesigns and reprints later. By aligning your packaging, product data, and GS1 certificate early, you can launch with confidence and keep your catalog healthy as you scale.

Startups often ask whether cheap barcodes are acceptable for testing. The answer depends on your goals. If you plan to sell only at farmers’ markets or on your own website, the risk may be lower. But the moment you step into Amazon, Walmart, or national retail chains, GS1 legitimacy becomes non-negotiable. Considering that most brands aspire to grow beyond their earliest channels, investing in authentic identifiers from the beginning is the smarter long-term decision.

Last Thoughts

Cheap barcodes may look like an easy way to cut costs, but their hidden risks outweigh the initial savings. From delayed launches and wasted packaging to lost credibility and rejected listings, the consequences can derail a brand’s growth. GS1 identifiers backed by a certificate of ownership remain the gold standard for building trust with retailers, marketplaces, and consumers. By investing in authentic barcodes from the start, businesses can protect their reputation, streamline operations, and secure a smoother path to long-term success.

Frequently asked questions

Are cheap barcodes ever acceptable for testing?
 While they may work in limited environments such as local events or direct-to-consumer sales on your own website, they are not acceptable for large-scale retail or online marketplaces. The moment you plan to expand, non-GS1 identifiers will create compliance issues.

Do all retailers check GS1 databases?
 The trend is moving strongly in that direction. Amazon, Walmart, Target, and many major grocery chains verify UPCs against GS1 records. Even if a smaller retailer isn’t checking now, using GS1 barcodes today can help prevent problems in the future.

Can I transfer a barcode from one product to another?
 No. Each product, including variations in size, color, or pack configuration, must have its own unique identifier. Reusing GTINs confuses catalog systems, creates inventory errors, and leads to rejected listings.

What happens if my product is already selling with a non-GS1 barcode?
 There is always a risk that it will be flagged. Retailers or marketplaces can suspend listings if they detect mismatched ownership. Transitioning to GS1-issued identifiers before you scale further is the safest approach to avoid disruptions.

Why do marketplaces reject resold or reused barcodes?
 Because GS1 records link GTINs to a specific company, if the record shows a different name than your brand, it signals that you do not own the identifier, which breaks compliance rules. Marketplaces reject these mismatches to maintain catalog integrity.

Is there a difference between a UPC purchased from GS1 and one purchased through a reseller?
 Yes. A GS1-issued UPC is directly tied to your company in the GS1 database. A reseller’s code may show another company’s name, which can cause rejection by retailers or marketplaces that validate identifiers.

Do GS1 barcodes expire?
 In many regions, GS1 identifiers are licensed through annual subscriptions. Brands must maintain their membership to keep ownership active. If a membership lapses, the identifiers may eventually be reissued, creating conflicts.

Can barcodes be used globally, or do I need separate ones for each country?
 GTINs are globally recognized, meaning the same identifier can be used across multiple markets. A UPC from GS1 US can function internationally, although many countries prefer the EAN format. What matters most is that your identifiers are legitimate and properly registered.

What’s the difference between a GTIN, UPC, and EAN?
 GTIN is the global standard term for product identifiers. UPCs, common in North America, and EANs, common internationally, are both types of GTINs. They perform the same function of linking a unique product to its data in retail systems.

Can I add a QR code alongside a UPC or EAN?
 Yes. QR codes are valuable for marketing, customer support, and traceability, but they do not replace the official UPC or EAN. If you use both, place them in separate areas of the packaging to prevent scanning errors at checkout.