What is EAN Code and How to Get GS1 Barcode?

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What is the EAN code and how to obtain the GS1 barcode for your products, an essential feature for selling on Marketplaces

You might wonder, while looking at the barcode placed on products for sale in a retail store, who decides and positions the barcode, as well as what its function is.

Who assigns barcodes?

To answer these questions, it is necessary to explain what the GS1 system is. The GS1 system is used for the coding of consumer goods and allows companies to identify services, logistical and commercial units, functions, and locations related to such products uniquely.

This uniqueness is achieved by using identification numbers, which take the form of a barcode. Through the barcode, optical readers placed at retail points can register outgoing products, deducting them from the inventory accounting, and provide the customer with an accurate account of their spending.

The GS1 system has now developed worldwide, with almost a million companies around the world having joined, thus providing a testament to the universality of the system itself.

EAN code meaning

GS1 BARCODE SYSTEM: LET'S TAKE A CLOSER LOOK AT THE EAN

When a company joins the GS1 system, it becomes a member and receives its own GS1 Global Company Prefix, which is its own GS1 company prefix that will become its unique international identification code. It will, therefore, be a sort of tax code or VAT number, however accepted and recognized worldwide. In addition, upon joining the GS1 system, the company is assigned one thousand GS1 numbers (EAN) - which will contain the previously provided GS1 company prefix - that can be assigned to its products, thus forming a unique identification code for them.

This unique identification code assigned to individual products, and having international value, is the GTIN code. Let’s take a closer look at what it is, how to obtain it, what costs it entails, and what advantages it brings.

GTIN CODE: WHAT IS IT ABOUT

The Global Trade Item Number, known by the acronym GTIN, is the term that refers to the GS1 code that has been assigned to packaging units, consumer units, and sales units for which useful information can be obtained for commercial purposes.

The GTIN code is, therefore, affixed to the single product (consumer unit), for example, a package of pasta, on the carton containing multiple products (packaging unit), and on the pallet containing multiple cartons that hold the individual products (sales unit).

How to obtain the GS1 EAN code?

How to obtain the GS1 barcode for your products?

As previously mentioned, the first step to obtaining the GTIN code - useful for identifying the consumer unit - is to acquire the company GS1 prefix. This prefix will have global value, will identify the brand owner, will not indicate the origin or source of the product, and will be assigned by Endicod-Ecr, now GS1 Italy, to the associated company.

Indicod-Ecr remains the owner of the company GS1 prefix, and the same company is therefore committed to using this prefix in accordance with the rules imposed by the GS1 system.

To obtain the company GS1 prefix, it is necessary to register with the GS1 Member Organization, which in Italy is indeed Endicod-Ecr, directly on the corresponding website. Once the online form is completed, a confirmation of registration will be received via email from Endicod-Ecr, along with all further instructions to complete the request.

Once the procedure is completed, a communication will be received regarding the assignment of the company GS1 prefix, which will be used to identify your products.

THE PROCEDURE FOR ASSIGNING THE GS1 CODE

How to assign the GS1 (EAN) barcode to your products.

The process of identifying and assigning the consumer unit - that is, the individual products sold at various points of sale - is simple. Let's take an example to better clarify the mechanism: the company Tizio S.p.A. registers online and, upon completion of the registration, receives a company GS1 prefix from Endicod-Ecr, namely 823045789. This prefix no. 823045789 identifies the company Tizio S.p.A. universally and uniquely as the owner of the brand.

The company Tizio S.p.A. will then decide the next three numbers (e.g., 421), which will serve as the product code, and the last number (e.g., 6), which will be the check digit. These numbers decided by the company will vary based on the products, while the company GS1 prefix will remain unchanged.

The company will have the option to assign up to one thousand product codes (from 000 to 999); if more codes are needed, it can always send a request to Endicod-Ecr and will receive a new company GS1 prefix.

Using our example, therefore, the company Tizio S.p.A. will use the code 823045789-421-6 for the 100g can of peas, where: 823045789 is the company GS1 prefix; 421 is the product code decided by the company; and 6 is the check digit, also decided by the company.

WHAT HAPPENS IF THE PARAMETERS OF THE PRODUCTS ARE MODIFIED

When is the EAN code changed?

If any of the product parameters change - such as brand, size, variety, type of packaging - a new GTIN code must be assigned. However, it is not always the case that changing certain parameters necessarily requires the assignment of a new GTIN code.

For example, a new code is not required in the following cases: adding an additional language, besides the one already present, on the packaging; minor graphic changes; small modifications to the product packaging material; slight variations in product quantity; price changes, as long as this is not indicated on the product packaging; inclusion of a discount code on coupons.

On the other hand, a new code is required in the following cases: replacement of the language originally present on the packaging; modification of the brand name; increase in the size of the product packaging exceeding 20%; changes related to net weight; inclusion of the discount code applied to the product packaging; product with extra quantity, c.d. bonus pack; inclusion of multiple products within the same packaging.

TYPES OF BAR CODES

The GS1 system includes various types of barcodes: EAN, ITF, UPC, JAN, and ISBN. The EAN code is used in Europe and usually consists of a 13-digit code, clearly the most well-known in Italy and also the code that has been discussed so far. The EAN code is the only one that can be read by the optical scanners present in various points of sale.

The ITF code consists of 14 digits and is used for multipacks; the UPC code, on the other hand, consists of 12 digits and is used in North America; the JAN code is made up of 8 or 13 digits and is used in Japan; finally, the ISBN code is the 13-digit code used for books. The bars of the codes are specifically created by computer systems.

There are various software programs, both paid and free, that allow for both generating and assigning them to individual products. Alternatively, one can rely on a printer. The quality of the printing of EAN codes is very important for a product to be correctly identified.

TALKING ABOUT COSTS

As provided by the Statute, the company that wishes to use the GS1 company prefix must pay an annual contribution and a fixed registration fee, established by the General Assembly.

Being a non-profit organization, the amount of the aforementioned two fees will be determined based on objective parameters, such as, for example, the company's turnover.

To give an example that may clarify better: if the turnover of your company is up to Euro 500,000.00, the registration fee will be Euro 300.00 and the annual contribution will be Euro 95.00.

WHAT ADVANTAGES DO GS1 EAN CODES OFFER?

The idea of barcodes was created by engineering students N. J. Woodland and B. Silver, who, in response to the need expressed by the president of a company operating in the food sector to automate checkout operations, developed the concept of the barcode.

The barcode, therefore, initially created for grocery stores, was soon extended to every other sector; this is because the benefits derived were immediately visible and essentially concerned better data management, cost reduction, and accessibility.

Today, especially due to the improvements made to barcodes with the advent of the technological revolution, the advantages of using barcodes - particularly the GS1 (EAN) code - have significantly increased.

Among these advantages is improved data accuracy. The input of data allows companies to create precise reports and make forecasts about future actions to be taken and needs. Moreover, barcodes reduce the risk of human error in data collection by almost 90%.

Another benefit is improved efficiency: thanks to barcodes, it will be possible to work faster without compromising accuracy.

Additionally, the use of barcodes in very fast-paced industrial environments allows for predictable and consistent operations that improve product quality by integrating various data management functions.

Barcodes also help companies gain a comprehensive view of their resources; among the additional advantages, there is an improvement in the management of assets and inventory. In fact, companies typically apply a barcode to their goods to record their conditions, characteristics, and numbers. Furthermore, by scanning the barcode affixed to the product packaging or wrapping, the company can update its inventory in real-time.

Finally, it should be noted that the improvements companies experience as a result of using barcodes also include enhanced customer service, reduced response time from suppliers and labor costs, decreased equipment costs, and numerous economic savings resulting from all the aforementioned benefits.

In summary: FAQ EAN Code

What are EAN codes used for?

The EAN number issued by the GS1 consortium is an identification system used globally by businesses around the world to identify and share information about products. We have all seen its use while waiting in line at the supermarket, when the cashier quickly scans the products we purchased; the EAN indeed helps save time in managing sales, logistics, and inventory.

What is the difference between EAN and ISBN?

The EAN and ISBN serve similar purposes in different fields; in fact, the ISBN code was introduced in 2007 to expand the method of identifying books and thus be able to identify a publishing product. Essentially, the EAN is a part of the ISBN code used to manage the logistics and sales of books.

Who issues EAN codes?

Barcode codes are issued for our country by GS1 Italy, the new name of Indicod-Ecr, which is the only Italian entity authorized to issue GS1 (EAN) barcodes.

How many digits does an EAN code have and what is it made of?

A GS1 barcode consists of 13 numbers, the numeric code is then graphically translated into a series of vertical bars to facilitate reading by optical units. These numbers identify the country of production, the GS1 company prefix that identifies the company globally, and the product code, ending with a check digit.

How to read an EAN code?

Reading an EAN code is very simple; you can either read the numbers on the barcode or use a barcode scanner. There are many inexpensive options available for just a few dozen euros, and they all work as "keyboard emulation," meaning they send a series of inputs to our computer that are identical to those we generate by pressing the corresponding keys on the keyboard. The EAN code is thus compatible with any computer system, and it is possible to read and manage them even without (unlike the modern QR CODE). This is because it was introduced in 1971 when computers had limited processing power and were not widely used.

When is the EAN mandatory?

The EAN code is practically mandatory in large distribution and in the global market; each product variant must have its own different GS1 code, so a packaged product of 200g cannot have the same code as one of 500g.

Today, it is practically mandatory for those who sell their products online; without an EAN code and with the adoption of only the MPN, one is very limited in shopping campaigns, both paid and free, and faces difficulties on marketplaces such as Amazon and eBay, precisely because lacking a unique global code makes it impossible to identify our product.

How much does an EAN code cost?

There are online services that sell even a single EAN code or packages of a few dozen codes, and these should be avoided. Such codes are not yours and do not identify you as a producer and company, and they are not valid for entering the global market or selling your products or services online. As mentioned, only GS1 is authorized to provide such codes. Consequently, it is necessary to join the consortium to obtain them.

To join the GS1 system, consult this page which also presents the related costs: https://gs1it.org/iscriviti/

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What is the EAN code and how to obtain the GS1 barcode?