What is ESL? Electronic Shelf Labels That Help Retail Businesses Move Toward Smart Retail
In today’s retail business, speed and data accuracy are more important than ever, especially when it comes to product prices, promotions, and in-store product information. If the information displayed on the shelf does not match the sales system, it can affect both customer trust and the overall shopping experience.
One technology that helps address this challenge is ESL (Electronic Shelf Label), or electronic price labels. ESL enables retailers to update shelf information quickly, reduce manual work, and improve accuracy in store operations.
However, ESL is not just a device for displaying prices. It is part of a broader Retail Technology Ecosystem that should work together with ERP, POS, and Retail Management Systems to ensure that in-store information is accurate and consistent with back-office data.
What is ESL?
ESL, or Electronic Shelf Label, is a digital product information label used to replace traditional paper price tags. In general, ESL often uses E-Paper or E-Ink display technology, which is known for low power consumption, effortless readability, and suitability for displaying information on product shelves.
The information displayed on ESL may include:
When information changes, such as price adjustments, promotion updates, or changes to product details, the system can send updated data to the relevant ESL labels through an ESL management system. This helps retailers update in-store information faster and reduce errors from manually changing price tags.
Why is ESL important for modern retail businesses?
1. Reduces pricing errors in stores
A common issue in retail businesses is when the price displayed on the shelf does not match the price in the POS system. ESL helps update price information from a central system to in-store labels, making the information displayed more consistent across the store.
2. Reduces manual work for store staff
Changing many paper price tags can take a significant amount of time and effort, especially for businesses with many products or multiple branches. ESL helps reduce these manual steps, allowing staff to spend more time serving customers, arranging products, and managing store operations more effectively.
3. Supports faster promotion management
Retail businesses often need to update promotions regularly, such as daily promotions, seasonal campaigns, or branch-specific offers. ESL makes it easier to update prices or promotional information on shelves quickly.
That said, ESL is not a system that calculates prices or creates promotions by itself. Its role is to display information from core business systems such as ERP, POS, or promotion management systems.
4. Helps reduce some long-term costs
Although ESL requires an initial investment, it can help reduce certain costs in the long run, such as printing costs, materials, time spent changing price tags, and errors caused by incorrect price displays.
How does ESL work with ERP and POS?
ESL becomes more effective when the information displayed on the label comes from accurate and standardized back-office systems, such as ERP, POS, or Retail Management Systems.
In general, ESL usually works through an ESL management system or ESL Platform, which acts as the middle layer for receiving data and sending it to each label.
A typical structure may look like this:
The integration approach may vary depending on the ESL provider, POS system, or ERP system used by each organization. Some systems may connect through APIs, while others may use middleware or a cloud platform provided by the ESL vendor.
The ESL system can be integrated with Microsoft Dynamics 365 Business Central and LS Retail.
For retail businesses using an ERP system such as Microsoft Dynamics 365 Business Central together with a Retail Management System such as LS Retail or LS Central, key information such as products, prices, promotions, and stock data can be managed systematically through the core business system.
When implementing ESL, businesses can design the connection between the ERP / Retail System and the ESL system through APIs, middleware, or solutions provided by the ESL vendor. This depends on the system architecture and the capabilities of each platform.
The key point is that ESL can deliver the most value when back-office data is accurate. If product information, prices, or promotions in the core system are incorrect, the ESL labels may display incorrect information as well.
What types of businesses are suitable for ESL?
ESL is suitable for businesses with many products, frequent price or promotion changes, or multiple branches that need standardized information across locations, such as the following:
ESL is especially useful for businesses that want to reduce pricing errors and improve flexibility in store operations.
ESL, or Electronic Shelf Label, is not just an electronic price tag. It is an important technology that helps retail businesses manage in-store information faster, more accurately, and more efficiently.
When ESL works together with the right ERP, POS, and Retail Management Systems, businesses can reduce manual work, minimize data errors, and move toward Smart Retail with greater confidence.
At AVISION, we are ready to help retail businesses build a strong ERP and Retail Solution foundation that connects data from the back office to the front store, supporting business growth in the Smart Retail era.