IoT Wireless Communication Technology in Practice: The Case of Electronic Price Tags

In the digital age, Internet of Things (IoT) technology is transforming our lives at an unprecedented pace. Among its many applications, the electronic price tag stands out as a typical example, gradually replacing traditional paper price tags and becoming a favorite in retail stores.

IoT Wireless Communication Technology: A Game-Changer for Electronic Price Tags

An electronic price tag, also known as an electronic shelf label, is an electronic display device capable of transmitting and receiving information. Commonly installed on shelves in supermarkets, convenience stores, and pharmacies, it is used to display product prices, promotional messages, and more. Compared to traditional paper tags, electronic price tags offer significant advantages such as real-time updates, remote management, and eco-friendliness.

Wireless communication technology is key to the wide application of electronic price tags. These tags connect to the store’s central computer database via a wireless network, allowing real-time data synchronization. When product prices or promotional details are updated, store staff can simply make changes in the back-end system, and the electronic price tags will instantly reflect the latest information. This real-time update capability not only enhances operational efficiency but also improves the customer shopping experience.

Advantages of the Electronic Price Tag System

With a basic understanding of electronic price tag systems, it's clear that compared to traditional paper tags, the benefits of electronic price labels outweigh the drawbacks—both from the retailer's and the customer's perspectives.

Retailer Perspective

• Simplified System Operation and Comprehensive Tag Management

During large-scale promotional events, retailers often need to modify the prices of many items. Electronic price tags can receive price change commands through an online management platform, and once updated, the screens refresh instantly. This enables fast, accurate price changes and provides customers with a more diverse shopping experience.

For individual product updates, managers can use handheld terminals to scan and modify the tags offline, and the changes will automatically sync with the server.

Some electronic price tag platforms support free third-party API integration, allowing seamless connection with a retailer’s online store ERP and POS systems. This ensures synchronized price updates and consistent information across online and offline platforms.

• Cost Savings Through Efficiency

Electronic price tags significantly improve store efficiency and reduce manual workload. While the initial investment may be higher, ongoing maintenance costs are low, and over time, substantial savings in labor and material costs can be realized.

According to reports, a medium-sized supermarket may spend around 100,000–150,000 CNY annually on replacing paper tags, plus 30,000 CNY per employee in labor costs. Investing around 1.1 million CNY to implement electronic price tags for 20,000 products could eliminate the need for 10–15 employees. With a 5-year service life, the system could recoup its cost in about 3 years, and thereafter continue to save money by eliminating paper tag expenses.

• Rapid Product Location and Efficient Picking

Product picking is a daily and repetitive task in physical retail. Traditionally, this process relies heavily on manual labor, with pickers needing to search for products, often taking up to 15 minutes per order.

With electronic price tags, each product is assigned a unique ID and is precisely mapped within the store. The backend system stores the location data of products and shelves, allowing it to calculate the shortest and most efficient picking routes. Staff can even locate products directly, greatly improving speed and accuracy.

Consumer Perspective

Compared to traditional paper tags, electronic price tags significantly improve the shopping experience. Their uniform size and appearance create a cleaner, more organized look. Despite this standardization, tags can still reflect unique styles—such as highlighting special offers with bold, eye-catching designs. Unlike paper tags that may fall off, electronic tags remain firmly in place after installation.

Electronic price tags eliminate confusion caused by mismatched price labels and products. Many consumers also find the digital numbers easier to read due to their larger font size, improving visibility and reducing the need to bend down to check prices. These user-friendly features make for a more pleasant and convenient shopping experience.