Barcodes are optical data representation symbols that are created to be read and interpreted by machines providing information about the product they are attached to. These are a retail solution that provides an easy way for the retailer to identify and charge for consumer goods. This range of solutions is termed Automatic Identification and Data Capture, AIDC. Barcodes can either be one dimensional or two dimensional. The former kind use lines of varying width and variable spacing to encode the data. 2D barcodes use a set of variable symbols which can be rectangles, hexagons, and others.

Barcode printing is, in most cases, undertaken by the product manufacturer or packer. The company tasked with the process of final packaging of the goods may also be tasked with the barcode label printing. This should be done in a manner that ensures that the barcode is legible, functional, and meets industry standards. It refers to a process termed barcode verification; this determines whether a barcode can be scanned and if the quality is acceptable. It is essential to maintain high standards to ensure low error rates as retailers charge this back to the manufacturer, which can cause them sizeable revenue loss.

When determining the optical quality the test performed are edge determination, reflectance capacity, contrast for symbol and edges, modulation, decodability and defects present. Contrast ensures that the symbols can be definitively read in a manner that does not produce ambiguity or other error. Edges must be clearly discernible as the scanners start reading the information from these points. Decodability ensures that the barcode can be translated by the software into accurate information at the point of sale. The reflectance capacity tests whether the barcode scanners will be able to read the barcode or will be reflected off the surface. This information is relayed back to whoever did the barcode label printing.

The advantages of barcodes are:

 § Easy retailing of products at the point of sale. The single largest use of barcodes is for retail checkout; this is because it enables quick capture of product information and computation of the costs.

 §  It allows for easier re-pricing of products even while they are still on the shelf.

 § It provides inventory support. By linking it into the central inventory management system, they provide information on which products are fast moving, and these can be replenished in time.

 § It provides the retailer with planning tools; historical information can show retail trends and the effects of product merchandising.