How to Set Up a Bin Location System (Even in a Spare Room)
The fastest way to find an item is to never have to look for it. A location system gives every shelf and bin an address, the same way streets and house numbers work.
Why addresses beat memory
When you have 40 items, you remember where everything is. At 400, you remember most of it. At 4,000, you spend part of every day searching, and a helper can't pick orders at all without you. A location system turns "I think it's in the garage" into "Garage, rack 1, shelf 3."
Choose an address format
Work from big to small, the way a mailing address goes from state to street to house:
- Zone: a room, area or aisle. Letters work well:
A,B, or short names likeGAR(garage) andRM(room). - Unit: a shelving unit or rack, numbered left to right:
1,2,3. - Level: the shelf, numbered from the bottom up or top down. Pick one and stick with it.
- Position (optional): a bin or spot on the shelf, numbered left to right.
Keep codes short. You'll write them, type them and say them out loud hundreds of times.
Draw a map
Before you label anything, sketch your space: doors, shelving units, and the walking path. Number units in the order you'd walk past them, so a pick list sorted by location becomes a walking route. Our printable bin location map gives you a grid to draw on.
Label everything
Put a label on every shelf edge and every bin, with the address in large text and a barcode underneath. Use the free label maker to print a whole range at once (for example, A-1-1 through C-4-6).
Print shelf and bin labels with Code 128 barcodes.
Record the location with each item
A location only helps if it's written down next to the SKU. Common places to keep it:
- Your inventory spreadsheet or app: a "Location" column next to SKU and quantity.
- The marketplace SKU field: on eBay, the custom label (SKU) field is private to you and appears in your order details, so some sellers put the location there.
- The listing title: some resellers add a short code like "LOC RM-8-2" to the end of a title so it shows on every order screen. It works, but buyers see it and it uses title space.
House rules that keep it accurate
- Nothing goes on a shelf without a location recorded. No "I'll update it later."
- Move it, update it. If an item changes bins, change the record at the same moment.
- One overflow zone for new arrivals, with its own address (like
IN-1), so unprocessed stock is never "nowhere." - Fixed vs random. Fixed locations (the mugs always live in B-1) are easiest when you restock the same items. Random locations (put it in any empty bin, record where) use space better when every item is different, as with most resellers. Many shops mix the two.
- Spot-check weekly. Pick a few locations and confirm what's there matches the records. See cycle counting.
Making it work in a small space
The system works the same in a closet as in a warehouse. A single closet might be zone CL, with one shelving unit, five shelves and labeled bins on each: CL-1-3-02. The point isn't size. It's that every item has exactly one address. For layout ideas, read small stockroom layout.
Common questions
What is a bin location?
A short code that tells you exactly where an item is stored, such as A-2-3 for aisle A, shelf unit 2, shelf 3.
Should the location be part of the SKU?
No. Items move. Keep the location in its own field, so you can move stock without renaming products.
Where do I record locations on eBay?
Many sellers add the location to eBay's custom label (SKU) field or to an inventory spreadsheet. Some put a short location code at the end of the title, but titles are seen by buyers and count toward the character limit.