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Shopify app SKUGen SKU Generator
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Barcodes for Shopify & Shopify POS

What Is Code 128 and When Should You Use It Instead of UPC?

Code 128 is a versatile barcode format used widely in warehouse operations, internal inventory systems, and product labeling. Unlike UPCs, which are standardized for external retail use, Code 128 barcodes are flexible and better suited for encoding custom identifiers like SKUs, location codes, or alphanumeric IDs.

Barcodes for Shopify and Shopify POS using SKUGen

What Makes Code 128 Different?

Code 128 supports a wide range of characters, including both letters and numbers. This allows businesses to encode more complex data such as internal SKUs (e.g., “SKU-RED-M”), bin locations, or special inventory codes directly into a barcode. It also creates a more compact barcode, making it easier to print on smaller labels.

In contrast, UPC-A and EAN-13 barcodes only encode numeric values, and are designed for global product identification.

When to Use Code 128

Use Code 128 when you need to:

  • Encode alphanumeric SKUs
  • Print labels for warehouse bins, pick locations, or internal tags
  • Include internal identifiers that do not conform to GTIN standards
  • Create compact barcodes for small-format shelf labels

This makes Code 128 ideal for operational workflows where barcode readability, speed, and internal control matter more than marketplace compliance.

SKUGen integrates seamlessly with this approach. It allows you to generate structured, variant-level SKUs that can be encoded into Code 128 barcodes for internal use across shelf labels, pick lists, or receiving tasks.

When Not to Use Code 128

Code 128 is not a replacement for UPC or EAN barcodes when a product is being sold through third-party retailers, online marketplaces, or global distributors. Those platforms often require standardized, registered barcodes (GTINs), which Code 128 does not provide.

In short, use UPC or EAN for external selling, and use Code 128 for internal speed and control.

Code 128 vs UPC for internal SKU barcodes
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