Benefits of Electronic Shelf Labels (ESL)  

Electronic shelf labels were first used in the early 90s in a Swedish retail store. As of then, they were only usable for displaying product prices. However, later generations of electronic shelf labels are more sophisticated and perform more functions, showing additional information like the quantity, brand name, etc.

While the features of modern electronic tags help retailers and brands maximize profits and run better operations, they also enhance customer engagement with products and make the purchasing process more convenient.

This blog post discusses the various benefits of electronic shelf labels, highlighting reasons businesses are transitioning from traditional to modern retail technology.

What Is an Electronic Shelf Label

Electronic Shelf Label
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Digital price tags are modern tools used for the instant display of price updates. On store shelves and point of sales terminals, they inform customers of product information, including the price, manufacturing details, special promotions, etc. These modern retail devices use e-paper technology and radio communication to transmit and show product data on the screen.

Electronic labels present an advanced, cost-effective, and faster way of displaying information to customers. Asides from increasing the efficiency of your business operation, digital labels assist in many other roles in retail, such as customer data collection, pricing automation, stock positioning and management, staff positioning, digital signage, and overall business management.

Benefits of Electronic Shelf Labels

There is an increasing demand for electronic labels from leading electronic shelf label manufacturers due to retail and network managers looking for better ways to improve sales, optimize employee hours, and enhance customer experience.

Electronic shelf labeling solutions and digital meeting room signages offer new opportunities for businesses and customers. They are discussed below:

  • Improves Efficiency and Reduces Errors

Switching paper tags is an error-prone task, and mistakes in pricing can lead to significant issues, which are usually at the retailer’s disadvantage. Besides leading to a loss of profit, regular discrepancies in pricing can also tarnish a brand’s image.

Electronic labeling solutions help in reducing the number of errors associated with paper price tags. Employee manipulations decrease significantly as prices are updated automatically from a central server. Staff does not have to move to each location to switch store prices.

When ESLs are combined with a POS management solution, they are highly efficient as they contribute to the recording and monitoring of supplier orders. Traditional or manual entry is limited, hence, human error is considerably cut down.

  • Inventory Management

In organizing a point of sale in a retail store, inventory management is essential. Proper management of stock enables employees to know when to restock items and record the slow-moving products and fast-selling products. 

A digital label can show customers the stock available, even if the items are not on the shelf. This is usually the case for items that can only be accessed after a procedure, such as game consoles, televisions, and computer equipment.

Also, using ESL electronic shelf labels allow you to move through products quickly as prices can be easily adjusted, and promos can be run without wasting time. By detailed tracking using ESL price tags, businesses can get rid of slow products. The amount of perishable stock thrown away can be cut down when prices are instantly adjusted for fast sales.

  • Environmental Sustainability

Replacing paper tags when you need to change prices or remove worn-out labels leads to a significant amount of waste over time. This is mostly true for retailers selling thousands of products. In addition to being expensive, paper and plastic tags cause harm to the environment, which is why it is important to have fewer of them.

Using digital labels on store shelves means that you only add the labels once and do not have to replace them ever. Devices do not have to be thrown away and last a long time before the batteries are replaced.

  • Promotes Digitalization

As the world gets increasingly digitalized, with the introduction of more advanced gadgets and technological improvements on existing devices in various industries, the retail industry is not left behind. ESL displays, digital signages, and LCD screens from electronic price tag suppliers promote digitalization in the retail sector. Going digital allows for easy control of business operations, no matter the size or complexity of the business. 

Digital price tags use powerful cloud-based technology to perform a variety of advanced functions, enabling hassle-free optimization of your business operation and boosting its efficiency. A supermarket chain can monitor activities in multiple stores from a central location by sending information simultaneously to its branches and informing employees of important changes or new displays.

  • Real-time In-store Display

Regulating the display of prices is a key challenge for every retail management. Real-time display of prices on store shelves provides reliable information for customers and enhances the pricing process for retailers. Display control is done remotely, instantly, and at any time.

Electronic shelf labels guarantee customer satisfaction and ensure compliance with price and labeling accuracy rules. In adjusting prices, changes are sent to the labels and cashier stations simultaneously, which are then automatically updated.

  • Advertisements and Promotions

For special discounts and specific seasons, such as Christmas, flyer discounts, and sales periods, ESL labels ensure customers are well-informed by displaying adequate, detailed information on their screens. Instant display of promotions enables customers to save money, reduce item waste, and ensure the high performance of promotional products.

High-definition videos or images of other products available in stock but not on the shelves can be displayed on electronic label screens to direct customers that may want something else. Digital labels help control the flow of products in stock as retailers know what products to put on store promotions and advertisements.

  • Track Customer Behaviour and Patterns

When you purchase an electronic label from a versatile e-paper display manufacturer, you can install a movement sensor into your device at a low price. These sensors track customers’ movement and patterns around your retail space, providing a digital heat map of your store.

Knowledge of in-store traffic can assist in item placement, best promotional areas, and displays, aisle layout, and customer purchase patterns, among others. Also, you get information on products that buyers paid attention to and products that were mostly passed down the aisle.

  • Traceability

For rentable items on retail store shelves, digital labels provide the essential information customers need before renting the product, including the item’s origin, expiry date, rental rates, consignment information, usage history, final sale indication, as well as details about the weight, size, and use of the product.

When products are traceable, customers have the satisfaction of choosing what they want without any help, giving employees more time to focus on other productive tasks.

Given these benefits, now you know electronic labels can boost business in various aspects. But you might be curious about which ESL label solutions will benefit your business maximum. You can find the answer on Zhsunyco’s electronic shelf labels to get more information you need.

Zhsunyco As Your Digital Label Supplier


Zhsunyco is a leading provider of ESL solutions and LCD screen suppliers, successfully boosting businesses in over 180 countries since 2016. By merging innovation and customer satisfaction, we deliver enterprise-ready solutions that remove any concerns you may have about purchasing, operating, and maintaining your electronic labels.

While digital labels require an investment, we offer the best prices for our electronic labels. Our years of research and development experience, strong production facility, and stringent quality control procedures enable us to supply a wide range of trusted digital devices that accelerate your retail business growth.

To get the best electronic shelf labels, you can contact us or visit Our excellent custom ability and after-sales services are available for you.

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