Traditional price tags have been the most conventional method of marking prices for a long time. Still, they only have the following disadvantages, such as the inconvenience of updating them and the possibility of being wrong. Any change in the price or any change in the product information necessarily has to be physically placed on the shelf, which can lead to further errors. These are the difficulties that Electronic Shelf Labels (ESLs) and digital price tags provide with a more contemporary approach. ESLs are promotional tools that can be easily programmed through wireless communication for real-time updating of prices and indications of products. They eliminate the Printed paper barcode tags, that are comparatively rigid, with ‘smart’ screens capable of easy updating. Therefore, ESLs and digital price tags are very important aspects of modern retailing systems to enhance operations productivity and customer satisfaction. They allow for the flexibility of immediate price alterations, management of stock without the need for labeling, and the cutting of expenses on the manual employment of labeling. Through the use of these technologies, retailers are capable of improving accuracy, promoting the right price strategies, and making shopping more appealing.
How ESLs Work?
Electronic Shelf Labels (ESLs) are signs that are computerized to display prices and information on products. The hardware components of ESLs are a display panel, a wireless communication module, and a power source. These can be e-paper LCD or LED and all displays are unique in their way. ESLs obtain information through a wireless connection with a central system and they enable the real-time changing of prices as well as information updates.
Benefits of ESLs
- Improved Efficiency: Electronic Shelf Labels (ESLs) automatically update the price tags, eliminating the time required to refresh the price tags by human beings. The above leads to timely and cost-effective benefits for retailers.
- Accuracy: Such includes real-time updates that ensure that the price and the product information are as current as possible to minimize cases of price tags that do not tally with the system used at the checkout point.
- Customer Experience: They leave a positive impact on the shopping experience for the customers by having easy-to-read signs and updated information on their commodities.
Types of ESLs
- E-Paper: E-paper Electronic Shelf Labels (ESLs) provide good legibility and resemble paper icons and tags, providing low power consumption, and the ability to work in both natural and artificial lighting.
- LCD: LCD ESLs offer brighter content and can also depict detailed content as compared to e-paper but they do not have a long battery life and hence use more power.
- LED: LED ESLs are characterized by high brightness and visibility and will reliably display the text in different illumination conditions. These are usually employed for promotional or impact events or for when a more striking layout is required.
Implementation Process
- Hardware: Refers to fixing the electronic Shelf Labels (ESLs) on the shelf such as the display panels, the communication modules, and the power sources.
- Software: Need a master file for the processing and updating of ESL information such as its price and the various products on the market.
- Integration: Today, ESLs have to be interfaced with other retail systems such as inventory and point of sale so that there can be relevant updates and synchronization. This integration makes operation easier while at the same time, keeping the interaction standard across all the contacts.
ESLs/Digital Price Tags
The ESLs and digital price tag is an electronic display tool in electronic communication with a central server that displays information about a product including its price. Both do not involve paper and these utilize in dimensional ways, i.e. e-paper, LCD, or, LED to display constantly changing and easily adjustable information. These tags are also rewritten by wireless from a central system, offering the best price and product description in real time. In addition to the price figures, digital price tags may include call-to-actions such as QR codes and other Web 2. 0 promotional messages. These adaptations improve the experience of the shoppers since they get the current information as well as interesting content. Digital pricing also enables quick changes to make special offers to the customers without much effort on the side of the retailer. While ESLs (Electronic Shelf Labels) are a specific type of digital price tag commonly used in retail to display prices and product details, digital price tags, in general, encompass all forms of digital displays used for various products and purposes, including interactive buttons and graphic displays.
The following are the benefits of ESLs /digital price tags;
- Dynamic Pricing: Both can be changed and updated hence they can enable retailers to change prices often as dictated by the demand, available stock, or even promotions. They allow flexibility in pricing to help maximize its potential impact and give a fast response to changes in the market.
- Interactive Content: Smart and modern products can come with features like a screen displaying QR codes, a review section, or a promotional message. It enriches the shopping experience by providing more details and, thus, addressing the customers more interactively.
Use Cases for ESLs/Digital Price Tags
- Promotions: Both are ideal for displaying seasonal promotions and sales. It can easily be updated to reflect changing offers, ensuring that customers always look at current offers.
- Customer engagement: Digital value propositions that incorporate interactive elements such as QR codes or product videos can be highly engaging for customers. This interaction increases interest in the product and can improve the overall shopping experience.
Challenges and Considerations
- Cost: Implementing digital value chains can involve a significant initial investment, including hardware, software, and integration costs for existing systems
- Integration: Ensuring seamless integration between current inventory and point-of-sale systems. The technology must work seamlessly with other retail systems to avoid interference.
- Maintenance: Digital price tags require regular maintenance and updating to remain in good working order. This includes addressing software issues and ensuring hardware components remain in good condition.
- Power supply: Depending on the technology used (e.g. LED), power consumption can be a concern and reliable power sources must be carefully managed.
Impact on Retail Operations
- Advanced inventory management and accurate pricing: Digital pricing reports allow for real-time updates, ensuring that inventory levels and prices are always accurate. This reduces the gap between shelves and checkouts, resulting in more accurate stock management and fewer pricing errors.
- Improved customer experience: Dynamic pricing and up-to-date product information improves the shopping experience. Consumers benefit from timely promotions, accurate pricing, and other interactive features to increase engagement and satisfaction.
- Increased sales and reduced labor costs: Automation of innovation through digital pricing minimizes the need for manual pricing adjustments, freeing up labor for other services Effective price adjustments can increase sales by rapidly reflecting promotions and price changes.
- Data Collection and Analysis: Digital pricing reports collect data on price changes, customer interactions, and inventory levels. This data provides valuable insights for better decision-making, helps retailers optimize pricing strategy, and improves efficiency.
ESL and digital price tags are revolutionizing the retail landscape. ESLs increase productivity and accuracy, while digital tags provide dynamic pricing and interactivity. They both drive sales, improve customer experience, and generate valuable data. StackIot technologies is here to guide you through this digital journey. Contact us today!