When we reviewed the top 3 barcode scanners including Shopsavvy back in December, we were somewhat disappointed in the test results. Each performed well in a certain area, but none provided the complete picture, namely both quick scanning and solid price search results. We’re happy to say that due to a recent update, ShopSavvy‘s (free, iTunes link) scanner has improved dramatically to the point it’s a clear winner, and we have added it to our list of Best of iPhone Apps.

ShopSavvy is one of those apps that just makes your life a little easier, especially if you’re a big shopper or bargain hunter. Say you’re at the store shopping for a new speaker dock for your iPhone. You find one you really like, and you want to buy it today, but you’re not sure if the store has a good price. With the ShopSavvy app, you simple scan the products barcode using the iPhone’s camera and get a list of prices from online retailers for comparison purposes.

One of the things we liked about Shopsavvy over the better-selling RedLaser app is that, in addition to prices from dozens of online stores, it provides prices from Amazon.com. Anyone who shops online knows that Amazon is a great weather gauge for prices. RedLaser does not include Amazon.

The ShopSavvy iPhone app has other neat features that make it a must download. Some results have accompanying product reviews so you can check on quality. The app offers a Wish List where you can save items for future shopping. Another feature is Price Alerts, where you can set a low price and be alerted when a product dips below that threshold.

To scan an item, you launch the app and tap ‘scan,’ which opens the iPhone’s camera. Position the guides over the barcode and hold still while the app scans. I was surprised just how quickly and successfully ShopSavvy can scan barcodes. It takes literally seconds in most cases.

The app functions best when pricing items commonly available online like media (books, video games, cds, etc). We tested the app in an auto-parts store, a major electronics retailer and a bookstore, and ShopSavvy offered results for just about everything we threw at it. Once it identifies the barcode, the product page pops up with reviews and online prices. If you’re having a hard time scanning the barcode, you can also manually enter the UPC number.

The app is not perfect. We were somewhat disappointed in results for grocery items. I scanned a bunch of food boxes at home, and it either didn’t recognize the barcode or didn’t have a corresponding product page. The developer claims that “at the end of the day, price comparison on bottled water isn’t important,” but I disagree. Another problem was that some of the prices in the search results were “false positives,” showing expired deals or weird eBay prices that weren’t accurate. The app also has a problem scanning barcodes on curved surfaces.

ShopSavvy will also show local prices for products if they are available, in addition to prices from online retailers. These feature is probably great for people in large cities, but it had few local prices for my small town, which is understandable. According to the developer, ShopSavvy works best on the iPhone 3GS, which has an auto-focusing camera. However, I tested the app on a 3G with good results, especially in stores. At home, just use good lighting (the brighter the better) and don’t expect much success with food items. My advice: try it out in a store first to appreciate how well it works.

Conclusion

ShopSavvy is an impressive app that works incredibly well. I found it especially useful for books. If you come across an interesting book at the bookstore, you can scan it and read reviews, and you’ll have a record of it if you decide to buy the book later. While I would appreciate more grocery coverage, I’m not going to knock them for that—the true value of this app is in high-value comparison shopping. Needless to say, I wish I had this app when I was Christmas shopping, and it earns a spot on our Best of iPhone Apps list. Highly recommended.

ShopSavvy is a free download from the iTunes App Store.