You need a system to track and manage products easily is essential in this evolving world of retail and eCommerce. One system that has revolutionised global commerce is the European Article Numbering (EAN). This internationally recognised system assigns unique identification numbers to products while ensuring they are easily trackable from offline and online stores.
EAN codes can be identified as barcodes placed on products and their packaging. These codes are essential to streamline your inventory, quicken the checkout process, and ensure compliance with retailer requirements. EAN codes are significant for international markets, making cross-border transactions smooth and efficient. In this blog, we will explore EAN codes in detail, including how they work, why they are essential, and how to obtain them. Thus, understanding these codes can improve business efficiency and enhance customer satisfaction, whether you are selling locally or planning to ship globally.
What is European Article Numbering (EAN)?
European Article Numbering (EAN) is a globally known system that assigns unique product identification numbers. These numbers are used to track products in retail and supply chain management. The EAN is a barcode that can be seen on product packaging, allowing businesses to manage, track, and sell their products efficiently. An EAN is a significant tool for streamlining the selling process, simplifying inventory management, and speeding up transactions at checkout.
EAN codes help businesses identify products across various platforms, ensuring they are traceable globally. They also simplify cross-border transactions, making it easier to export products and maintain accurate data.
How to Obtain EAN?
Obtaining an EAN is a simple process but involves carefully following several essential steps. These include:
- Register with GS1: GS1 is a global organisation issuing or providing EAN codes. To get started, visit GS1’s website and sign up for membership. Once registered, you can apply for a unique prefix to identify your business. This prefix will be further used to generate EAN codes for your products.
- Generate EAN Codes: You can generate your EAN code using GS1’s tools after registration. The code consists of 13 digits that uniquely identify each product. Some eCommerce platforms offer a service to generate EANs for small businesses. However, if you are exporting, it is advisable to use GS1 for consistency.
- Assign to Products: Once you have your EANs, you must assign them to your products. Each variation, item, or bundle must have its unique EAN to avoid confusion in sales and inventory.
- Use EAN Codes on Product Packaging: Many sellers also use EAN codes on their packaging while shipping products internationally to identify them quickly. In this case, ensure the EAN is visible on the packaging as a barcode.
Why Do You Need an EAN Code?
For businesses that frequently export internationally, having an EAN code is more than just a formality; this code is essential for streamlining business operations. Some other significant reasons why you need an EAN code are:
- International Product Identification: The EAN code is an internationally unique identifier for your products. Whether you sell your goods online or in physical stores, EAN codes ensure that the products are recognised across different systems and help you sell them worldwide.
- Compliance with Retailer Requirements: You need EAN codes for your products before they are listed for sale. EAN codes are important whether you are selling them online or offline, as without these codes, the products may not be eligible for sale on platforms like eBay, Amazon, etc.
- Inventory management: EAN codes simplify stock management. A unique code for each product can help you easily track products, monitor stock levels, and streamline the ordering and reordering process. EAN numbers further reduce inventory errors and ensure better control over the supply chain.
- Faster checkouts: EAN codes help you allow customers to have a faster checkout process online and offline in physical stores. Barcodes associated with EAN codes help with quick scanning, making transactions faster and reducing manual input errors for customers.
- Efficient shipping and logistics: EAN codes are used as standardised systems in shipping and logistics. These codes play an important role in ensuring a smooth and fast export process in shipping companies, customs authorities, and warehouses so that the products can be scanned and tracked easily.
- Building trust with buyers: When your products have EAN codes on their packaging, it shows your professionalism and reliability. Buyers also trust the products with standard barcodes, as it shows that your business is as per international standards and regulations.
How Does an EAN Barcode Work?
An EAN barcode looks like a simple pattern of lines and numbers, but it holds critical data that helps businesses run more efficiently. Here is how an EAN barcode works:
- Structure of the EAN Barcode: An EAN Barcode consists of 13 or 8 digits. The first few digits show the region or country where the product is registered, followed by the manufacturer code, the product identifier, and a check digit, which ensures accuracy during scanning.
- Scannable information: The scans or bars in the EAN barcode show the numbers in a visual format that barcode scanners can read. When a scanner reads the barcode, it translates the lines into numbers related to product information, such as the manufacturer, product type, or price.
- How a barcode is used in the supply chain: Once the EAN barcode is assigned to a product, it becomes a significant tool for the supply chain. It is scanned to track inventory, manage stock, and monitor sales at every stage, from manufacturing to retail. When exporting products, EAN barcodes help customs, warehouses, and logistics companies quickly identify and process goods.
- Efficiency during checkout: EAN barcodes also help to have a quick and accurate checkout process in retail shops. There are automated systems or cashiers to scan the barcodes to have the product information and price, which speeds up the transaction process while reducing the errors of manual entries.
- Integration of EAN barcodes with retail systems: The barcodes are compatible with different point-of-sale (POS) systems, which allows you to integrate inventory, pricing, and sales data real-timeime. This integration helps streamline operations and improve the customer experience.
Types of EAN Code
EAN codes are of different types, each designed for specific uses per the product region and size. The most common types of EAN codes which are used on the products are:
- EAN-13 Code: The EAN-13 is a standard code which is a widely used format for products internationally. It includes 13 digits, which are broken into several parts like-
- Country code: The first three digits represent the country where the product is registered.
- Manufacturer code: The next few digits help identify the product’s manufacturer or brand.
- Product code: The following digits after the manufacturer code are the unique identifier for the specific product code.
- Final digit to check: The last digit is a mathematically calculated number used to verify whether the barcode has been scanned correctly.
The EAN-13 code is generally used for large products or items with enough packaging space for 13-digit barcodes. This barcode format is widely accepted across international markets, making it significant for export business.
- EAN-8 Code: The EAN-8 code is a short version of the EAN-13 code, containing only eight digits. This code is designed for small products where the space on the packaging is less or limited to place a barcode. Like the EAN-13 code, the EAN-8 code starts with a country code, followed by a manufacturer code, product code, and a check digit. Although the EAN-8 holds less data than the EAN-13, it still provides essential product identification and tracking information. The EAN-8 code is particularly useful for items sold in bulk or with limited packaging space.
Structure of EAN Codes
Each number in an EAN code provides critical details, such as the product’s origin, manufacturer, and unique identity. These details are explained below:
- Country code: Every EAN Code starts with a country prefix, comprising the first two or three digits. These digits indicate where the company that registered the product is based, not necessarily where the product was made. For example, if your favourite candy’s barcode starts with ‘500-509’, then it’s a company registered in the UK, and if a tea bag’s barcode starts from ‘890’, then it’s a company in India.
- Manufacturer code: Right after the country code, there is a manufacturer code, which is like a company signature or personal ID. These digits are assigned to the company that produces or distributes the product. Every authentic manufacturer has its own set of digits in the barcode, which proves internationally that this product belongs to them.
- Product code: Next is the product code, which is different for each product that a company sells. Whether it is a bottle of juice or a pair of shoes, every product will have its different code. Even similar products, like different flavours of juices, will have different product codes.
- Check digit: Finally, the last digit is the check digit. This is like the security barcode, as it verifies that the barcode has been scanned correctly. It’s calculated using a formula based on the code’s numbers to ensure accurate scanning.
An EAN code may appear as just numbers, but it’s a well-organised system that conveys crucial details about a product’s origin, manufacturer, and identity. Whether there are 13 or 8 digits in the EAN code, each part works together to ensure that the product can be tracked efficiently through the supply chain from the factory to the store shelf.
Supplemental EAN Barcodes
Supplemental EAN barcodes are like add-ons that enhance the primary EAN barcode by providing extra information. These supplemental barcodes are placed on many retail items with EAN barcodes. Here is how they work:
- EAN-2 (2-digit add-on): The EAN-2 is a small barcode placed alongside the main EAN-13 or EAN-8 code. It is commonly seen on newspapers and magazines. This two-digit code typically contains information such as the issue number or publication date. For example, if you subscribe to a weekly magazine, the EAN-2 code helps track the specific edition you hold, such as whether it’s the 23rd or 45th of the year. Though small, it plays a crucial role in keeping publications organised.
- EAN-5 (5-digit add-on): The EAN-5 code consists of 5 digits and is mainly placed on products with variable pricing. Books, for example, generally have fixed prices in some regions, but because of different taxes and promotions, the prices may vary in other regions. EAN-5 provides specific information about pricing and additional handling costs. It is an additional reference for retailers to ensure accurate pricing during checkout.
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Conclusion
Learning about EAN codes is important for modern-day sellers if you are looking to ship and scale your business internationally. EAN codes work as unique identifiers which streamline operations, manage inventory, enable faster checkout, and ensure compliance. Whether you are dealing with large products using EAN-13 codes or compact goods with EAN-8 sides, each will provide you with important information about the products while enhancing the overall efficiency. EAN codes empower you by allowing them to track products across different platforms.
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