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# Costco GS1-128 Label Requirements (2026): What Every Produce Supplier Needs to Know
- URL: https://tag-verify.ghost.io/costco-gs1-128-label-requirements-2026/
- Published: 2026-09-06T09:49:52.000Z
- Updated: 2026-09-06T09:49:52.000Z
- Author: Tag Verify Team

If you ship produce to Costco, every pallet that enters their distribution network must carry a GS1-128 barcode label that meets their current compliance specifications. A label that doesn't scan, carries incorrect data, or is placed in the wrong location triggers an automatic non-compliance event at the receiving dock. That event generates a chargeback — a deduction from your invoice — without any human review.

This guide covers exactly what Costco requires, field by field, so your next shipment clears receiving on the first scan.

What Is a GS1-128 Label?

GS1-128 (formerly called UCC-128 or EAN-128) is a barcode standard that encodes structured supply chain data using Application Identifiers (AIs). Each AI is a two- or four-digit code in parentheses that tells the scanner what type of data follows it. A compliant GS1-128 label doesn't just carry a number — it carries structured, machine-readable information that Costco's warehouse management system reads automatically at the dock door.

The barcode is a linear (1D) Code 128 barcode. It is not a QR code. It is not a PDF417\. It is a specific barcode symbology that Zebra thermal printers output using ZPL commands.

What Costco Requires on Every Pallet Label

Costco's pallet label must include the following Application Identifiers, in this order:

(00) SSCC — Serial Shipping Container Code. An 18-digit number that uniquely identifies this specific pallet. No two pallets in your supply chain should ever share an SSCC. The SSCC structure: \[1-digit extension\]\[GS1 Company Prefix\]\[Serial Reference\]\[Check Digit\]. You must have a GS1 Company Prefix assigned by GS1 US to generate valid SSCCs.

(420) Ship-To ZIP Code. The 5-digit ZIP code of the Costco distribution center receiving the shipment.

(02) GTIN of Contained Trade Items. The 14-digit Global Trade Item Number for the product on the pallet. This must match the GTIN in your Costco item setup exactly.

(37) Count of Trade Items. The number of cases or units on the pallet.

(10) Lot or Batch Number. Your internal production lot identifier. This field is critical for FSMA Rule 204 traceability compliance and cannot be blank.

(13) Pack Date. Format: YYMMDD. The date the product was packed or harvested.

(15) Best Before / Use By Date. Format: YYMMDD. Required for perishable produce.

Human-Readable Information

Above the barcode, the label must display human-readable text showing: Ship-To name and address, Ship-From name and address, Purchase Order number, and the SSCC in plain text. Costco receiving staff verify the PO number visually before the automated scan confirms the rest.

Label Placement

The GS1-128 label must be placed on the lower-left corner of the pallet, on all four sides if possible, and always on the side facing the dock door. The bottom edge of the label must be between 15 and 40 inches from the floor. Labels placed too high, too low, or on the top of the pallet will not be scanned by the dock-door readers.

Label Size

Minimum label size is 4 inches wide by 6 inches tall (4x6). This is the industry standard and matches the output of Zebra ZD-series and ZT-series thermal printers.

Print Quality Requirements

Costco uses automated barcode verification at receiving. Labels must meet ANSI/ISO barcode quality grade C or higher. This means:

\- Minimum print resolution: 203 DPI (300 DPI preferred)

\- No torn, wrinkled, smeared, or partially printed labels

\- Quiet zones (blank space) on both sides of the barcode must be intact

\- The barcode must scan correctly from all four reading angles

The most common print quality failure is using an inkjet printer instead of a thermal printer. Inkjet labels smear in cold storage and fail to scan. Use a Zebra thermal printer with the correct label stock.

What Happens When a Label Fails

Costco's receiving system performs a three-way match: your Purchase Order, your Advance Ship Notice (ASN/EDI 856), and the physical barcode scan. If any of the three don't align — or if the barcode won't scan — the system issues a non-compliance event automatically. Common outcomes:

\- Shipment held at dock pending manual review (delays of 2–4 hours)

\- Shipment refused and returned at your expense

\- Chargeback deduction of 1–3% of the full invoice value

On a $50,000 truckload of produce, a 2% chargeback is $1,000\. On a $200,000 week of shipments, repeated label errors cost $4,000–$10,000 in chargebacks — plus the operational disruption of rejected loads.

The Most Common Costco Label Errors

1\. SSCC generated without a valid GS1 Company Prefix (random numbers that don't conform to GS1 structure)

2\. GTIN in the barcode doesn't match the GTIN in the Costco item database

3\. Pack date missing or in wrong format

4\. Lot number left blank

5\. Label printed on an inkjet printer instead of a thermal printer

6\. Label placed on top of the pallet instead of the side

How to Validate Before You Print

The fastest way to confirm your label is compliant before it goes on a pallet is to validate the data and generate the barcode through a compliance tool, then scan the output with a handheld scanner and confirm it reads correctly. If it reads and the data matches your PO, you're clear.

Tag Verify validates your shipment data against current Costco GS1-128 requirements before generating the barcode. Enter your lot number, GTIN, pack date, and destination — the platform confirms compliance and outputs the barcode directly to your Zebra printer. No bad labels leave your facility.

Generate a compliant Costco label now at [tagverifyapp.com](https://tagverifyapp.com/?ref=tag-verify.ghost.io) — no account required.