Anelectronic shelf label(ESL) system is used by retailers for displaying product pricing on shelves. The product pricing is automatically updated whenever a price is changed under the control of a central server. Typically, electronic display modules are attached to the front edge of retail shelving.

ESL模块使用electronic paper (E-paper) or liquid-crystal display (LCD) to show the current product price to the customer. E-paper is widely used on ESLs as it provides crisp display and supports full graphic imaging while needing no power to retain an image. A communication network allows the price display to be automatically updated whenever a product price is changed. This communication network is the true differentiation and what really makes ESL a viable solution. The wireless communication must support reasonable range, speed, battery life, and reliability. The means of wireless communication can be based on radio, infrared or even visible light communication. Currently, the ESL market leans heavily towards radio frequency based ESL solutions with additional integrations.

A typical ESL utilizes ultra-low-power CPU and wireless communication solutions to meet the power of low cost and low power, due to the high number of label tags required in an average retail store. ESL consists of three aspects to function.

标签管理software: Responsible for the configuration of the system, configuration of the properties on the label itself, and to update the database for the list of prices Typically, a centralized software that is responsible for the building of and maintenance of the network for the data communication between the label management software and the terminal display.

Communication station: Responsible for the stability and reliability of transmittance through a long distance from the label management software to the label.

Terminal display: Functions as a receiver from the communication station to display the price configured from the label management software.

The label management software processes and packs the data of product information and the prices configured into packets of information. The data packets are then sent to the communication station via wireless network. Once the data packets are transmitted to the communication station, they will then be sent to the terminal display to update the price labels based on the information inputted into the label management software. A communication network allows the price display to be automatically updated whenever a product price is changed. This communication network is the true differentiation and what really makes ESL a viable solution. The wireless communication must support reasonable range, speed, battery life, and reliability. The means of wireless communication can be based on radio, infrared or even visible light communication. Currently, the ESL market leans heavily towards radio frequency based ESL solutions. The label will then act based on the instructions that was given in the data packets.

Usage of electronic shelf labels

Electronic shelf labels are primarily used by retailers who sell their products in stores. The display modules are usually attached to the front edge of the retail shelves and display the price of the product. Additional information such as stock levels, expiration dates, or product information may also be displayed as well, depending on the type of ESL.

Benefits

Automated ESL systems reduces pricing management labor costs, improves pricing accuracy and allows dynamic pricing. Dynamic pricing is the concept in which retailers can fluctuate pricing to match demand, online competition, inventory levels, shelf-life of items, and to create promotions.[8] Some advantages of using electronic shelf labels are

Accurate pricing: Prices on shelves are updated on time and on demand to match with price files on the label management software from a link between the in store point of sale processor and the label management software. This will increase pricing accuracy to avoid branding issues revolving around price integrity. As a result, decreasing the lost revenue from undervalued items, as consumers generally alert staffs of overpriced items, and not the inverse.

Save costs: As opposed to traditional pricing labels, whenever prices are changed and updated; employees will no longer require to print out labels and manually replace them in the shelf tags. With ESL, this eliminates the need to visit each shelf and make changes as all changes are made in the label manage.