Benefits of Electronic Shelf Labels (ESLs): Enhancing Store Competitiveness and Understanding Electronic Shelf Label Pricing

15 Feb 2024

Along with the rise of e-commerce stores, competition in the consumer market has also intensified. How to create competitive pricing strategies, lower costs, and sell products more effectively have become businesses’ main focus. Fortunately, electronic shelf label (Also Known as ESL)  technology happens to be a powerful solution to those challenges. This article is going to illustrate the benefits of electronic shelf labels.

Introduction to electronic shelf label technology

What is an electronic shelf label?

Electronic shelf label runs with a low power consumption system on chip microcontroller (MCU/SoC) with wireless radio communication technology, the system consists of three main parts: label management software, communication station, and terminal display. It has the ability to transmit, update, and display information and data.

Are electronic shelf labels worth it? A best choice for E-paper display

For sure, electronic shelf label technology is the best choice for E-paper displays that offer unparalleled advantages, from minimal power consumption and extended battery life to enhanced readability and real-time pricing agility. The invention of electronic shelf label technology is user-friendly for the retail industry. Here are the details about the benefits of E-paper display below.

    • Low energy consumption: 

    E-paper display only consumes energy when it’s updating or switching information, and is suitable to be used on display that does not require frequent changes, such as digital price tags for retail uses.  

    • Suitable for retail price tag:

    The nature of electronic shelf label technology’s low energy consumption also makes it a perfect fit for labels that need to be displayed for a long period of time. 

    • High uploading speed:

    While digital price tags for retail uses do not require much information, the high uploading speed of small images and data files makes it suitable for real time pricing. When a retailer needs to change any data on the price tag, they can also update the data via .csv, .xml or API call to change the item data or price immediately for pricing agility and accuracy.

    • Better readability:

    While information displayed using electronic shelf label technology is usually text or barcodes, the reflective monitor becomes one of the benefits of electronic shelf labels as it helps improve the readability compared to emissive monitors like OLED. 

    • Easy-to-use:

    Electronic shelf labels are designed to be lightweight and easy to be installed onto the shelves. 

    • Battery longevity:

    The drive circuit used on e-paper displays is simple and the battery can last as long as ten years. 

    • Multi-colors:

    The colors displayed can range from the basic black and white to the newest 3 or 4-colors above.

    • Vision-friendly:

    The viewing angle of e-paper display is wider than most monitors, up to 180 degree, which highly resembles traditional paper’s reading experience. 

  • After understanding what is Electronic Shelf label system and how e-paper display helps form such system, it’s time for us to see what are the benefits of electronic shelf labels

Benefits of Electronic Shelf Labels

Electronic shelf label technology uses RGB LED, and can showcase a lot of information that a traditional shelf label doesn’t. Besides product details and its QR-code, it can display customer rating and best customer reviews for user-experience understanding. Furthermore, Electronic shelf label technology can also show how many stocks are available in the store.

Benefits from the perspective of business operation

From a business operational perspective, Electronic Shelf Labels (ESLs) offer a range of benefits that optimise efficiency and drive profitability for retailers. ESLs enable centralised control and management of pricing and product information across multiple store locations, ensuring consistency and compliance with regulations. They provide valuable data analytics insights into customer behaviour and preferences, facilitating strategic decision-making and targeted marketing efforts.

ESLs streamline supply chain management, labour allocation, and promotion execution, allowing retailers to stay agile and responsive in a dynamic market environment.

    • Efficient Pricing Strategy/Price Management
      Increasing shelf efficiency: capable of updating all electronic shelf labels price and POS system within seconds;
    • Improve customers satisfaction
      Electronic shelf label technology can provide accurate and up-to-date pricing , which highly increases customer satisfaction and loyalty.
    • Help the promotions of certain product
      Electronic shelf label technology gives the ability to increase frequency of promotions and potentially increase revenues.
    • Saving Operation cost
      Largely lower the cost that traditional labeling spends in paper usage, inks, printing, transportation, and human resources.
    • Real time item replenishment
      Electronic shelf label technology can help monitor products and shelves condition in real time.
    • Improve competitiveness
      With the help of big data, Electronic shelf labels can also help produce more effective marketing strategies and set more accurate digital price tags for retail (dynamic price).

Overall, Electronic shelf labels enhance operational efficiency, customer satisfaction, and overall business performance, positioning retailers for sustained success in the competitive retail landscape.


Other benefits of electronic shelf labels:ESG concept supporting

Why electronic shelf label technology supports ESG

Electronic Shelf Label (ESL) technology strongly supports Environmental, Social, and Governance (ESG) principles. ESLs reduce paper consumption and waste, promoting environmental sustainability.

They foster social responsibility and trust between retailers and consumers. Overall, ESL technology embodies innovation and commitment to ESG principles, positioning retailers as leaders in sustainable retail practices.

Things electronic shelf label technology do for ESG

    • Uses reusable materialThe materials used to make e-paper displays are reusable and recyclable mostly with casing, film material and more, unlike traditional shelf labels that need to be discarded after use.
    • Consumes ultra-low power
      Electronic shelf label systems only consume energy when updating images, therefore can replace traditional paper usage, deforestation, and water usage.
    • Decreases power consumption
      E-paper display also does not require printing or paper transportation, and helps reduce carbon emission.
    • Paper replacement and reduce packing materials
      E-paper display intends to replace the printed labels on the shelves and the retailers can change item data without printing paper label anymore which will reduce carbon emissions. The packing of electronic shelf labels ship to stores or warehouses are reducing the materials and packing required for shipping.
    • Sustains long-life
      Electronic shelf label technology not only cuts down costs and wastes for businesses, but is also sustainable and lasts for a long time to reduce the battery usage and save more carbon consumption.

Electronic shelf label technology also empowers retailers to highlight eco-friendly products and implement dynamic pricing strategies, encouraging sustainable consumption patterns. Furthermore, through centralised control and data analytics, ESL systems facilitate resource optimization, leading to long-term cost savings and financial sustainability.


Introduction to Pervasive Displays:Provide all the benefits of electronic shelf label

Who is Pervasive Displays

Pervasive Displays is the leader in e-paper displays for IoT applications, it designs, manufactures and markets e-paper displays that deliver high resolution, ultra-thin form factor, sunlight readability, wide full range sizes and ultra-low power consumption. Pervasive Displays provides suitable solutions for businesses which hope to gain use of electronic shelf label technology.

What benefits of electronic shelf label can Pervasive Displays provides

    • Ultra-low power consumption
      Pervasive Displays is dedicated to designing high performance and focus on manufacturing ultra-low power displays for industrial applications, reducing both material and energy costs for clients.
    • Customization
      Pervasive Displays provides tailor-made services with professional inhouse designers and technical support. Clients are able to get customized products based on their needs and preference.
    • Long-term supply
      Pervasive Displays promises to support the product for a long-term of life. Once the customer bought our product, we won’t end the product life at will. Pervasive Displays cares about the stability of supply of your product line.

Now you understand the benefits of electronic shelf labels. No matter from the perspective of its function, business operation or ESG, electronic shelf label technology can truly be seen as a brand new choice for you. Click the link below to understand more about Pervasive Displays!

APAC (Headquarter)

4F, No. 28, Chuangye Rd.,
Tainan Science Park
Tainan City (744094)
Taiwan (R.O.C.)
Phone: +886-6279-5399


Kalsdorfer Strasse 12
8072 Fernitz-Mellach


Orinda, CA 94563
Phone: +1-510-519-0080

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