Confused about UPC and company prefixes?

Here’s another barcode-related mistake that I myself made. When I launched my 2nd-4th products (one product type with 3 variations) under a ‘generic’ brand, I bought a set of 10 UPC barcodes through GS1. This set of 10 comes with a company prefix and initially, I didn’t quite understand what a company prefix meant but instead of knowing more, I ignored it. Bit me in the ass eventually.

Anyway, with the first product I launched, I purchased a standalone barcode and it costs $5 more (per single barcode) than the set of 10 barcodes as you can see on the table below. And because the set of 10 costs less, it was a no-brainer for the succeeding products.

I thought I was saving money but I was wrong. When I listed the 3 products on Amazon using the barcodes from the set, I hit a roadblock. Apparently, the company prefix has to be linked to a brand before you can use it. I went back and forth with Seller Support and fortunately, I was able to convince them to link the company prefix to a ‘generic’ brand. Bad news is, the remaining 7 barcodes from the set can only be used for a product with a ‘generic’ brand name.

Why is it a bad news?

Because the 5th product I launched has a brand name which meant I had to purchase another standalone barcode since I cannot use any one from the set. IF I launch products under generic brand then I can use the remaining barcodes but from what I’ve experienced so far, I won’t be doing that anymore.

Ergo, I wasted $175 for barcodes that I don’t intend to use elsewhere. What’s worse, this set of 10 barcodes comes with an annual renewal fee. So either I discontinue these 3 products or I continue and use Amazon barcodes instead.

What’s the moral of this story?

If you’re launching your first product on Amazon, to test the market and see if it’s a good fit, opt to use Amazon barcode over manufacturer barcode. It’s less complicated and costs free. You can consider using a manufacturer barcode when 1) you’re also selling, or plan to sell, in other retail stores and marketplaces in which case a universal barcode is necessary, and 2) you’ve worked hard on your product, have a trademark pending for your brand, and/or will be launching other products under the same brand.

But if your plan is to sell products under different brands and decided to use a manufacturer barcode, then purchasing a set of barcodes with company prefix doesn’t make sense. You’re better off purchasing standalone barcodes.

Got questions or suggestions? Drop a comment or send me an email.