The layout and organisation of your warehouse can make or break operational efficiency. Without a clear system, workers spend time searching for products instead of fulfilling orders – creating bottlenecks, delays, and unnecessary costs. One of the simplest, most cost-effective solutions? Rack labels.
In this guide, we’ll explain what rack labels are, their benefits, the different types available, and how to implement them. We’ll also share expert tips from over 40 years of experience helping warehouses streamline their operations.
What Are Rack Labels?
Rack labels (also called racking labels or warehouse location labels) are adhesive or magnetic labels that identify the locations of items in a warehouse. They’re often printed with barcodes, numbers, or letters to create a simple, scannable system for workers to find products quickly and accurately.
Rack labels are usually placed on pallet racking, shelving, or bin locations. They form part of a warehouse location system, helping you maintain order and ensure efficient product picking.
Benefits of Rack Labels
Using rack labels can transform the efficiency of your warehouse operations. Key benefits include:
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Faster product location: A quick scan of a barcode or a clear visual label means workers can find items in seconds, avoiding wasted time.
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Improved picking accuracy: Clear labelling reduces mistakes in picking and shipping, improving customer satisfaction.
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Better workflow: Rack labels reduce bottlenecks and streamline the flow of goods, which means fewer delays during busy periods.
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Cost-effective solution: Compared to other warehouse upgrades, rack labels are an inexpensive way to improve productivity.

Types of Rack Labels
Choosing the right label type is crucial for durability and ease of use. Here are the most common options:
| Type | Best For | Key Benefits |
|---|---|---|
| Magnetic Rack Labels | Warehouses where labels need to be moved or repositioned | Reusable, easy to replace, ideal for cold stores |
| Self-Adhesive Labels | Permanent labelling on pallet racking or shelving | Cost-effective, durable, available in many finishes |
| Block-Out Labels | Covering existing labels without barcode interference | Prevents old codes being scanned, easy to apply |
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How to Label Warehouse Racking
Implementing a proper rack labelling system isn’t complicated, but it pays to plan carefully. Here’s how:
1. Map Out Your Warehouse
Start by reviewing your warehouse floor plan. Divide it into aisles, bays, levels, and pallet positions. This hierarchy ensures every location has a unique, easy-to-scan label.
2. Choose a Labelling Method
The two most common picking systems are:
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Standard: Labels are placed sequentially across racks, but workers may need to double back.
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Serpentine: Labels flow in a continuous pattern, minimising backtracking and walking time.
3. Label from the Floor Up
If you have multiple racking levels, label them from the bottom up. For example:
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Ground level = 01
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Second level = 02
Using double digits (01, 02, 03) helps future-proof your system.
4. Consider Multi-Level Labels
Multi-Level (Totem Pole) Labels stack multiple barcodes vertically at ground level, allowing workers to scan higher rack levels without needing long-range barcode scanners. Pair these with colour coding for even faster navigation.

Rack Label Materials and Durability
- Magnetic Rack Labels – these are perfect for when you need a rack label that can be easily removed and switched to a different location. They’re also great for cold environments as they don’t fall off or become illegible.
- Self-Adhesive Rack Labels – these can come in a variety of materials, be it polyester or paper or vinyl, and provide a very cost-effective, permanent solution for ambient room temperature warehousing.
- Block Out Rack Labels – if you already have self-adhesive labels affixed to your racking but need to replace them, we’re sorry to say they can prove very tricky to get off! If you use thin paper to cover over the old label, barcode scanners may pick up the code on the label behind. For this reason, block out rack labels are a wise choice as the material is thicker to ensure the old code can’t be mistakenly scanned. They can be supplied either plain or with the code already printed on.
Best Practices for Rack Label Design
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Use large, clear fonts for numbers or text.
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Include barcodes for fast scanning.
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Use contrasting colours (e.g., black text on yellow) for visibility.
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Keep the label design consistent across the warehouse.
Frequently Asked Questions (FAQs)
1. What is the difference between rack labels and shelf labels?
Shelf labels are usually smaller and used on lighter shelving for smaller products, while rack labels are larger, durable labels designed for pallet racking and heavy-duty use.
2. Are magnetic or adhesive rack labels better?
It depends on your needs. Magnetic labels are reusable and ideal for dynamic storage setups. Adhesive labels are cheaper and permanent, making them better for stable inventory layouts.
3. Can I print my own rack labels?
Yes, but for high-quality barcodes that scan accurately every time, it’s often better to use a specialist rack label supplier.
Where to Buy Rack Labels
Beaverswood rack labels are available through our trusted network of distributors and resellers across the UK and EU. We can help you find the best solution for your warehouse and connect you to a distributor who can supply your exact requirements.
Get in touch to be connected to your nearest distributor:
📞 0118 979 6096
📧 sales@beaverswood.co.uk



