Understanding electronic shelf labels by looking into what they are, how they work and what customers really worry about

Retailers increasingly turn to electronic shelf labels to modernize pricing, but customers aren't totally on board. Here's a breakdown of what ESLs (aka digital shelf tags) are, how they function and the key concerns people have raised.

In the ever-changing world of retail technology, electronic shelf labels are making big waves. These little digital screens, sometimes called digital shelf tags (https://www.vusion.com/na/products/sesimagotag/electronic-shelf-labels/), are replacing traditional paper price tags on store shelves. To retailers, they promise efficiency, fewer errors and a smarter shopping experience. But for customers, the shift raises some very real questions. How reliable are these labels? Do they drain batteries? Could they be used to hike prices unfairly?

● What are electronic shelf labels?

-- The basics

ESLs are small, electronic displays that sit on store shelves, showing product information such as price, promotions and more. Unlike paper tags, ESLs are connected to the store's back-end system, so price updates or changes in product information are affected in real-time.

Many of these displays use e-ink, similar to what you see on e-readers, which is energy-efficient and easy to read. Others use LCDs, though those generally require more constant power.

-- How they work

Behind the scenes, ESLs communicate with a central management system. Here's a simplified flow:

A store manager updates pricing or product information through a central software portal. That portal sends the updated data to wireless gateways or controllers installed in the store. The gateways broadcast the changes to individual shelf labels over wireless protocols, sometimes via radio frequency, Bluetooth Low Energy, Wi-Fi or even NFC.

The ESLs are updated and then refreshed the display. Because displays using e-ink are bi-stable, they only expend energy when the display changes, thus prolonging battery life.

● Why retailers love ESLs

-- Efficiency and labor savings

Manual price and promotion updates using paper tags are extremely labor-intensive and costly. With ESLs, retailers can publish updates across an entire store-or even multiple stores-almost instantly.

One big plus: No more hours-long runs making price tags.

-- Accuracy and error reduction

Manual updates of shelf tags are prone to a high number of errors. ESL systems reduce labeling errors by pulling price data directly from the inventory and point-of-sale system, making them substantially more accurate in pricing.

-- Better inventory and restocking

These labels don't just display prices; they have the ability to integrate with inventory-management systems. Some ESLs even light up or flash via LED to help staff find items faster during restocking or when picking for online orders.

-- Improved customer experience

ESLs can project customized offers, QR codes and other relevant information by integrating them with loyalty programs or mobile applications.

This helps bridge the gap between digital and physical retail in such a way that feels seamless.

-- Sustainability

Switching to ESLs reduces paper waste. No more printing and discarding hundreds or thousands of paper shelf tags every week; it's better for budgets and the environment.

● Key customer concerns

While ESLs present great value, not all customer feedback is rosy. Below are some of the key concerns raised by consumers, regulators and privacy advocates.

-- Pricing transparency and dynamic pricing

The most discussed worry is the possibility that retailers will use ESLs for dynamic pricing-that is, that prices will change more often than traditional advertisements do. Critics are afraid this will be abused during periods of high demand or under emergency situations.

Unlike fixed paper tags, ESLs allow for near real-time price changes, which raises red flags regarding price gouging, especially on essential goods.

-- Technical risks and malfunctions

Technology is not perfect. There have been reports and analyses that show how ESL system glitches can lead to price errors, at times significant enough to force temporary store closures.

While remote management catches some issues early, there is still a risk of display failures, miscommunication, or even dropped updates.

-- Battery life and maintenance costs

How long a battery would last also depends greatly on the display type. The fact that E-ink displays use power only in updates enables their longevity, but LCD-based ESLs will require more regular powering.

Over time, the replacement of batteries, or repairs to units, adds to the overall cost of ownership and maintenance; something that retailers, and ultimately customers, should keep in mind.

-- Durability and physical security

Some labels are fragile, especially in high-traffic areas. Customers and retail workers have shared stories of tags being knocked off shelves or breaking during restocking or cart traffic.

Physical durability can become a real PR or safety issue for stores depending on the quality of the installation.

-- Data security and privacy

When ESLs connect to backend systems, there is a risk if data is not encrypted well. Customers worry about whether their shopping behavior is being tracked or used, especially when ESLs pair with other technologies such as facial recognition or mobile apps.

Legally, the use of biometric data or profiling for price tweaking could run into regulatory and ethical issues.

-- Supplier and support risks

Retailers also have to be concerned with long-term support from vendors. What happens when devices require firmware updates, or when the manufacturer discontinues a model? Choosing an ESL system with strong technical support is key.

● ESLs as a digital retail platform

ESLs are more than just a pricing tool; they're part of a bigger trend in turning physical retail space into digital assets. Think of retailers embracing platforms that offer digital shelf tags, interactive price displays and connected tools that smooth operations, improve sustainability and engage customers in new ways.

These platforms often package a set of digital tools: ESLs integrated with inventory, data analytics, personalization and backend management systems. The goal is to make stores smarter, leaner and more responsive-smoothly combining e-commerce agility with the tactile experience of brick-and-mortar.

This release was published on openPR.