What are electronic price tags & how do they work?
Imagine never having to update prices manually again, avoid errors caused by outdated labels or adjust special promotions throughout the store in a matter of seconds. With electronic shelf labels (ESL), this is possible and they not only display prices, but also other important product information. But what exactly are ESL labels and how do they work?
What are electronic price labels (ESL)?
Electronic shelf labels (ESL) are high-resolution digital displays that are attached to shelves, counters or product displays and show prices. However, they can display much more, e.g. ingredients, stock levels, promotional prices and much more product information. Unlike conventional paper labels, they can be centrally controlled and updated in seconds, making ESL labels a real game changer in retail.
One example: a supermarket uses electronic price tags to display higher prices for baked goods in the morning and reduced "save the bag" offers in the evening - fully automatically.
How electronic shelf labels work
Electronic shelf labels are the perfect symbiosis of smart technology and efficient retail management.
1. Central control - the brain of the system
At the heart of the system is central software that is seamlessly connected to your merchandise management or checkout system. This is where you set prices, discounts or product information - whether for one store or all locations simultaneously.
2. Energy-efficient displays - durable and clear
The ESL labels mostly use e-ink technology, the same technology that makes e-books readable. They mainly only consume power when changes are made, which enables battery life of up to 5 years - ideal for 24/7 operation.
3. Fast data transmission - secure and reliable
The control software sends updates to strategically placed communication modules via an encrypted wireless network. These distribute the data like a "router network" to all electronic price labels (ESL) at lightning speed - even in large stores.
4. Real-time updates - everything at a glance
Whether price adjustments, special offers or stock levels: changes appear on all relevant displays within seconds. Even thousands of items can be updated in a synchronized manner - without any manual effort.
5. Bidirectional control - safety in both directions
Modern ESL systems not only confirm the receipt of updates, but also continuously monitor whether the labels are working correctly. This allows you to detect failures at an early stage and avoid price errors on the shelves.
Why is this important for you?
Imagine this: You start a flash promotion at 3 p.m. - and every ESL shows the reduced price on time. No employee running through aisles, no customer complaining about incorrect information. Thanks to ESLs, you stay in control, save up to 80% of the time spent on price maintenance and implement dynamic strategies - from seasonal offers to time-of-day pricing.
Fun fact: Some systems even use artificial intelligence to automatically adjust prices to demand or competitor offers - the future of retail is dynamic.
ESL technology in detail: how data exchange works
Communication between electronic price tags and the central merchandise management system is based on a modern network architecture: the ESL management software functions as a central link between the merchandise management system and the electronic shelf labels. When a price change is made in the system, this information is transmitted to the corresponding ESL labels via strategically placed base stations (access points). Depending on the manufacturer and area of application, various radio technologies are used - from WLAN frequencies (2.4 GHz or 5 GHz) to special frequency bands such as 433 MHz or the latest Bluetooth 5.4 connections. Each electronic shelf label has a unique ID and communicates bidirectionally with the system, which not only confirms the successful transmission of new price information, but also allows the battery status and functionality to be continuously monitored. The range and transmission speed of the base stations varies depending on the technology used and the local conditions, with modern systems capable of reliably transmitting thousands of price changes in a short space of time. This flexible technological infrastructure enables efficient and secure pricing across the entire sales area.
That's why electronic price tags are the future!
Electronic price tags are a modern and efficient solution for retailers. Not only do they offer automated price changes, error prevention and cost savings, they also improve the customer experience and contribute to sustainability. If you want to stay ahead of the competition, you should rely on ESL technology now!