We introduce TeSS (Text Similarity Comparison using Sentence Encoder), a framework for zero-shot classification where the assigned label is determined by the embedding similarity between the input text and each candidate label prompt. We leverage representations from sentence encoders optimized to locate semantically similar samples closer to each other in embedding space during pre-training. The label prompt embeddings serve as prototypes of their corresponding class clusters. Furthermore, to compensate for the potentially poorly descriptive labels in their original format, we retrieve semantically similar sentences from external corpora and additionally use them with the original label prompt (TeSS-R). TeSS outperforms strong baselines on various closed-set and open-set classification datasets under zero-shot setting, with further gains when combined with label prompt diversification through retrieval. These results are robustly attained to verbalizer variations, an ancillary benefit of using a bi-encoder. Altogether, our method serves as a reliable baseline for zero-shot classification and a simple interface to assess the quality of sentence encoders.