How Do Electronic Shelf Labels Integrate with POS Systems?

In the modern retail environment, where speed, accuracy, and efficiency are paramount, Electronic Shelf Labels (ESLs) have emerged as a powerful tool for streamlining store operations. One of the key reasons behind their effectiveness is their seamless integration with Point-of-Sale (POS) and other retail systems. But how exactly does this integration work, and what benefits does it offer to retailers?

Here’s a closer look at how ESLs work alongside POS and other systems, enabling retailers to optimise pricing, inventory management, and customer experience.

Understanding the Basics of ESL Integration

Electronic Shelf Labels are digital displays placed on store shelves to show product pricing, promotions, and other relevant information. They connect to a central system that communicates pricing and other updates directly to each digital shelf label. This central, cloud-based system, serves as a hub that allows ESLs to integrate smoothly with POS and other essential retail systems.

For integration to be successful, ESLs rely on APIs (Application Programming Interfaces) or middleware. These software bridges enable communication between the ESLs and the POS or ERP (Enterprise Resource Planning) systems, ensuring data flows accurately and consistently across platforms.

Why Integrate ESL and POS?

A POS system is responsible for managing transactions, recording sales, and tracking inventory. When integrated with ESLs, a POS system becomes a powerful tool for automating price and stock updates.

Automatic Price Updates: When a price change is made in the POS system, this information is automatically transmitted to the ESLs, updating shelf prices in real-time. This ensures consistency across all channels, as prices in-store match those online and in promotional material.

Promotions and Discounts: With ESL integration, stores can instantly update promotional prices across all shelves. Whether it’s a seasonal sale or a flash discount, these changes are reflected on the ESLs, helping retailers to manage promotions with greater accuracy and efficiency.

Out-of-Stock Alerts: If an item is out of stock or low on inventory, the POS system can send a signal to the ESL to display a “Low Stock” or “Out of Stock” message. This feature improves the customer experience by setting clear expectations and can even help guide shoppers to alternative products.

How ESLs Connect with POS Systems

1) API Integration

This is a direct and seamless connection between the two systems using an API (Application Programming Interface). It provides the most complete integration but requires the retailer’s POS system to have an accessible API, a feature that not all systems offer.

2) Custom SaaS Integration

This involves creating a bespoke integration between two SaaS (Software as a Service) systems, allowing a higher level of flexibility and customisation. However, it can be time-consuming to set up.

3) Established SaaS Integration

Here, the systems connect through an established integration between the two SaaS platforms, using prebuilt pathways to configure various functions.

4) Data Extract and Upload

When API or SaaS integration is not feasible, an alternative option is available. This method involves automatically exporting a data file to a secure location when a relevant change is made in the POS system; followed by the automatic retrieval and upload of this data file to the ESL system.

While this is the simplest form of data integration, it remains a highly effective option for many retailers with POS systems that have limited integration capabilities.

Choosing the Right ESL Solution

Not all ESL solutions offer the same level of integration flexibility. When selecting an ESL provider, it’s essential to choose a solution that can seamlessly connect with your existing POS (or ERP system). This connection underpins the effectiveness of the entire solution, so ensuring it is created correctly is essential. A reliable and efficient configuration will make ESL technology game-changing for your business.

Look for providers who offer customisable integration options, strong technical support, and long-standing expertise in ESL technology, like FutureShelf. 

Final word

Electronic Shelf Labels are more than just digital price tags; they’re an essential part of a modern, connected retail system. By integrating ESLs with the POS and other systems, retailers can streamline operations, reduce costs, and enhance the customer experience. For any retailer looking to improve efficiency and stay competitive, Electronic Shelf Labels are an investment well worth considering.

Want to find out more?

Contact us to discuss how our Electronic Shelf Label solution would integrate into your business.

Or, download our brochure to discover our product range.