How Does a Digital Label System Work in a Store?

Recently, we finished a project to replace all product labels in a store with digital labels. I was personally involved in every stage of this project, from the receiver devices used to sending the price files into the system, from the label designs to the overall operation of the system. Honestly, seeing this work in the field helped me understand that it is not just about the screen and the device.

How does a digital label system work?

The basic logic behind digital labels is quite simple. Price information is prepared centrally, then sent to the system and reflected on the labels. So instead of printing each paper label one by one and attaching it to the shelves by hand, prices are managed from a central place. This makes it much easier to keep the price and the checkout price in sync inside the store.

In the project we did, the receiver devices, sending the price files into the system, and the label designs all ran together. The important thing here is not just seeing the label on the screen, but building the system correctly from start to finish. If the data flow is not right, even the most expensive label does not mean much.

How much do digital labels cost?

Honestly, the setup cost of this system is a bit high. If we think of an average store having around 2000 labels, the unit price of the labels starts at 2 to 3 dollars and can go up to 7 to 8 dollars depending on their size. Still, when you consider the consumables for paper labels, printer costs, and extra device expenses, this investment pays for itself over time.

Looking at it one by one, the label price may seem high, but I think it is more accurate to think about it together with the total workload. With paper labels, separate effort is needed for printing, cutting, changing, and correcting mistakes. In a digital label system, these items are reduced significantly.

How are price changes and error rates affected?

In the old system, big price changes were made a few times a week, and staff had to come in 2 to 3 hours early because of that. After digital labels, staff do not come early anymore and do not have to deal with changing labels. Whatever the price at the checkout is, that same price appears directly on the shelf label.

Also, in paper label changes, the error rate caused by human factors was around 5%. With the digital label system, we brought this error rate down to almost zero. During the day, we can send price changes whenever we want, and those changes are reflected on the labels very quickly.

For me, this was one of the most important advantages. Because price mismatches create problems for the customer and also add an unnecessary control burden inside. This system removes most of that burden.

What was the effect on staff efficiency?

Staff who save time from price checks and label changes can now be directed to provide better service to customers. By increasing the number of cashiers working at the checkout, customers’ waiting time can be reduced. Since the number of staff helping in the aisles increases, a clear improvement in customer satisfaction can also be achieved.

I think this side is often overlooked. When people hear digital labels, most think only about price changes, but there is also the staff management side of the job. Because you can use the same human resources more efficiently, the flow of the store becomes smoother too.

How long do digital labels last?

They shared that digital product information labels have very high energy efficiency thanks to the low-power E-Ink technology they contain. E-ink screens consume energy only when the content or price on the screen is updated, and they use almost no power while displaying a static image. Thanks to this technological advantage, digital labels are said to offer an uninterrupted usage life of 5 to 10 years with replaceable batteries in a scenario of an average of 1 to 2 price updates per day.

As far as I can see, the really important thing here is not a single numerical lifespan, but how stable the system works and how it is maintained. The labels do not need to be refreshed often during the day, because the goal is already to reduce paper use. This moves the expected lifespan to a place different from the classic label understanding.

Can price control be done with a robot?

There are also robot solutions in the sector that walk around the store and check whether prices are correct. These robots move along the shelves and detect incorrect prices. However, the cost of this technology is quite high for now, so I think it can be considered in the future.

Honestly, these kinds of solutions seem like a complement to the digital label system. On one side, you update the price quickly from the center, and on the other side, you try to automate field control. Together they create a stronger structure, but they may not be suitable for every store right away.

In the end, I definitely recommend that stores with high product turnover and frequent price updates switch to a digital label system. For me, this project was a transformation that made both operations and staff planning easier. For those who are thinking about switching to such a system, the best step is to clearly understand the needs first and then plan the installation accordingly.