What is an Electronic Shelf Label & How It Works?

What is an Electronic Shelf Label & How It Works?
time:2024-11-14author:Minewtag

Are you planning to digitize your store? More and more retailers are looking to digitalize to improve operational efficiency and boost sales. Which digital technologies are worth applying? This article will introduce an innovation that is changing the way retailers manage product pricing and information - electronic shelf labels (ESL). These digital price tags are quickly replacing traditional paper labels in many stores, and embracing electronic shelf labels is an important part of achieving digital transformation. But what is an electronic shelf label exactly and how does it work?

electronic shelf label

What is an electronic shelf label (ESL)?


An electronic shelf label (ESL) is a digital display that can display content such as prices, barcodes, and promotions. 

Unlike paper labels that need to be updated manually, ESLs can be updated in real time through management systems. Therefore, the important role of ESL is to reduce errors caused by manual information updates and reduce the environmental impact of using paper labels.


ESL components


Display

The electronic ink screen is the core of the ESL. The electronic ink screen maintains a display effect similar to traditional paper, is not harmful to the eyes, and has extremely low power consumption. Some models may use other display technologies, such as LCD electronic price tags.


Communication Technology

Wi-Fi, Bluetooth, 2.4g or other wireless communication systems are the more commonly used wireless technologies, but the differences in transmission speed, coverage and power consumption between different communication technologies should be factors to consider when choosing ESL


Power Supply

ESL runs on very low power consumption and uses long-life batteries, which can be used continuously without frequent replacement. In fact, some models only need to replace the battery every few years, which brings retailers significantly lower operating costs compared to traditional paper labels that are often replaced regularly.


How does an electronic shelf label works?


In fact, the working system of ESL is not complicated. The basic working principle:

electronic shelf label work system


Retailers connect all ESLs in the store to the inventory and price management system through a cloud platform or software. When the price information needs to be changed, the new data is sent from the cloud platform to the communication station (gateway) connected to the store shelf label, and then to the ESL. The ESL receives the data through wireless communication and automatically displays the new information. This happens almost instantly - without the need for employees to manually update each individual label.


Other applications of electronic shelf labels


Electronic shelf labels are not limited to retail. There are many other scenarios where electronic shelf labels are suitable:


Pharmacies and drug stores

Providing accurate instructions for use and health-related information is why pharmacies are suitable for electronic labels. Electronic price tags help manage a wide variety of medicines and can also be used to highlight important health information, such as dosage or expiration dates of over-the-counter drugs.

drugstore with esl

Warehouse

In warehouses and logistics facilities, ESLs are used to track inventory, display part numbers, and display item availability in real time. It is helpful to improve warehouse operation efficiency. Labels can also automatically update when products are moved, sold, or restocked, reducing manual work and errors.

warehouse electronic shelf label

Office and corporate environments

Electronic shelf labels are becoming a practical solution for office resource management, communication, and space optimization. You can see the role of electronic shelf labels in more offices


1. Conference room scheduling

Used outside conference rooms, displaying real-time availability and reservation information. These digital labels can be integrated with office scheduling software and automatically updated to show whether the room is in use or available for meetings.

conference room doorplate

2. Desk and workspace information management

ESLs can be placed on desks or workstations to display employee information, and interesting templates may make work less boring.

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