Walk into a small importer’s warehouse and you can often guess how much stock is missing by looking at the cartons. Handwritten marker notes, faded stickers, three products with the same brown box and a supplier’s label that only the supplier can read. The goods may be perfectly good; the information about them is not. Barcodes and QR labels are the simplest way to fix that, and they cost far less than the errors they prevent.
This guide explains the difference between the codes you might use, what to ask your Chinese supplier to print before cartons leave the factory, how to design a scan-based receiving routine, and the mistakes that make labels unreadable.

Three different codes for three different jobs
People say “barcode” as if it were one thing. In a warehouse there are really three separate labels, and confusing them is the root of many problems:
- The product code (GTIN or EAN/UPC). Printed on retail packaging and identifying the product to shops and marketplaces. Numbers of this kind are allocated through the GS1 system and are not something you should copy from another product or buy from an unknown reseller. Use one only when you sell through retail channels that require it.
- Your internal SKU code. A code you design yourself to identify each product variant — colour, size, model — in your own stock system. It does not need a licence, and it is the code your warehouse team scans most.
- The carton or pallet label. A label identifying a physical unit: this carton, this pallet, this lot. Logistics systems often use serial-number-based pallet identifiers so that each pallet has a unique reference, whatever it contains.
The mistake is to rely on the retail product barcode for everything. Two shipments of the same product share the same product barcode, so you cannot tell the batches apart, and if a supplier changes a factory or material without changing the retail packaging, you cannot trace it. An internal batch or lot code on the carton solves that.
Linear codes versus QR codes
Linear codes (the traditional bars) are easy to scan with inexpensive laser or imaging readers, stay legible at modest print quality and hold a short string such as an SKU. Two-dimensional codes such as QR hold much more data — a URL, a batch, a date — and can be scanned by an ordinary smartphone camera, which matters for a small operation without dedicated scanners. The trade-off is that they need more careful printing and enough white space around them. For internal shelf and carton labels, many warehouses use a common linear symbology or QR; the right choice depends on your reader hardware and your software, so confirm what your system accepts before designing labels.
Get the supplier to print your labels at origin
The cheapest moment to label cartons is before they are packed. Add a labelling appendix to your order that specifies the label content, size, position and language. A useful carton label typically carries the product name and SKU, quantity per carton, carton number out of total, gross and net weight, dimensions, batch or production date and a scannable code. Position matters: place it on the same side of every carton so that pickers do not have to rotate boxes, and away from tape seams that damage the print. Send a sample artwork and ask for a photo of the first printed carton before mass production. Our guide to shipping marks and carton labelling covers the customs and forwarder side, while custom packaging and labels covers retail packaging.
Design a scan-based receiving routine
A label is only useful if it is scanned at the right moments. The core routine follows the flow of goods. At receiving, scan each carton against the packing list or advance shipping notice to confirm what has arrived, and record shortages or damage on the spot. At putaway, scan the carton and the bin or shelf location label together so the system knows where the goods live. At picking, the picker scans the location and then the item, which prevents wrong-item picks. At dispatch, scan again to confirm what left. The value is that every movement creates a record, and a stock count difference can be traced to a step. See the inbound receiving process for the physical steps and bin location numbering for designing the location labels you will scan.
What to put on shelf and bin labels
Location labels should be readable from a distance and scannable close up. Use large human-readable text for the aisle, rack and level, plus a code. Keep the numbering logical and consistent, put labels at the eye level of the picker, and protect them from dust, moisture and forklift abrasion. A label that can only be read when you crouch will be skipped, and skipped scans produce exactly the inaccuracies you are trying to remove. Inventory routines such as cycle counting depend on these labels being correct; a wrong location label sends the counter looking in the wrong place and generates false discrepancies.
Common labelling mistakes
- Low-contrast printing. Grey ink on brown cardboard or a faded thermal print will not scan reliably. Ask for dark ink on a light background, and test scan the first samples.
- Curved or creased surfaces. A label wrapped around a corner or over a tape edge distorts the code. Keep it flat.
- Insufficient quiet zone. Every code needs blank space around it. Crowding text against a code can cause scan failures.
- Duplicated SKUs. Two variants sharing a code merges their stock. Give each colour and size its own SKU.
- Copying a barcode number. Reusing another product’s number for your own product can cause conflicts on marketplaces and with retailers.
- Changing codes silently. If you re-label stock with new SKUs, update the system in the same step or your records diverge from the shelves.
Choosing hardware and software without overspending
You do not need an expensive system on day one. A smartphone with a scanning app and a spreadsheet can carry a small operation for a while. When volume grows, a handheld scanner and a basic inventory or warehouse management application will pay for themselves in saved counting time. Decide on the workflow first and buy the tools second; our warehouse management system basics article explains what such software does and does not do. Whatever tools you pick, test them with real cartons, in real warehouse lighting, before rolling out to every product.
Link labelling to inventory discipline
Labels do not manage stock; they make it possible to manage it. Pair them with regular counts, a reorder rule and an agreed method for the picking order. Our articles on safety stock and reorder points and FIFO versus FEFO picking show how accurate identification supports those decisions. If your goods have expiry dates, a batch code on the carton is not optional. And if your business is growing toward marketplace or retail sales, you may also need a product code allocated through the proper channel; ask whichever platform you sell on what it requires.
A practical starting plan
Start with your ten best-selling products. Assign each a clean SKU, design one carton label template, agree the label position with your supplier for the next order, and print shelf labels for their locations. Scan every receiving and every dispatch for one month and compare the system count with a physical count at the end. The difference tells you how much the discipline is worth. If you would like help specifying labels for a new factory order or setting up a receiving routine for goods arriving from China, tell us what you handle and we will help you plan it.
Need help with your own shipment? Explore our sourcing and logistics services, contact the DE International team for a quote built around your cargo, look at our China sourcing and buying agent service, or browse the catalogue.
