Why RFID Tech in Retail is So Important

Posted by on Aug 1, 2016 10:07:54 PM


As retailers continue to look for new ways to manage inventory, reduce shrinkage and drive sales revenue, they are starting to take a serious look at Radio Frequency identification (RFID) technology. 

What RFID is and how it works

Similar to a barcode or magnetic strip on a credit card, the RFID device provides a unique identifier for that object and needs to be scanned to retrieve the identifying information. RFID refers to small electronic devices consisting of a small chip and an antenna. The chip can usually carry a maximum of 2,000 bytes of data. 

When an RFID tag passes through the field of the scanning antenna it recognizes the activation signal from the antenna. This activates the RFID chip and transmits the information on its microchip to be recognized by the scanning antenna. 

The antenna sends out radio frequency signals and this radiation provides a means of communicating with the tag, as well as providing the tag with the energy to communicate. 

The tag does not need to be on the surface of the object and read time is less than 100 milliseconds, allowing a large number of tags to be read simultaneously instead of one at a time. 

RFID Technology in Retail

Benefits include:

  • Work efficiency
  • Sales improvement
  • Job satisfaction
  • Customer service levels increase

BOPIS, which stands for buy online pick-up in store, is one the most significant advantages of RFID technology. As a retailer managing inventory isn't always easy. Through technology you're able to be on the grounds of each of your stores to see what's in stock and what's available for purchase. When your customer goes to your store they will find that what you said was in stock was actually in stock

Faster Checkout Experience

Consumers today demand high levels of service. As your customer stands in line waiting to give you their money, their impatience grows with every minute they have to wait. With RFID technology, you can improve  technology, you can improve their buying experience. 

Items with RFID compatibility are scanned the moment a customer walks through an RFID gate and payments are made anonymously or through a customer loyalty card. This dramatically reduces time spent at the checkout, allowing for faster queues and improved customer satisfaction. 

This positive experience is likely to resonate in the minds of customers who may well favor your store over competitors for this reason. 


Infographic by Colourfast

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Topics: RFID, Retail

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