What is RFID technology?
RFID is a wireless technology that has two main parts: the tag and the reader. A reader is a device with one or more antennas that can send and receive electromagnetic signals from RFID tags.
These tags store serial numbers, or unique identifiers, that use radio waves to send data to nearby readers. They contain RFID chips, also known as integrated circuits (ICs), that deliver data to readers.
Uses of RFID technology
RFID technology is used in industries such as healthcare, automotive, consumer goods, aerospace, and transportation.
In a retail setting, RFID uses include:
Strengthen store operations
When a particular variety is out of stock or out of stock, the RFID system can notify employees. It also automatically shows them that in the background** products can be found and how many products need to be replenished.
Analyze in-store traffic patterns
You can use RFID to track the movement of items throughout your store. With this information, you can get an idea of the high traffic times of your store throughout the day and the different employee and product paths.
Create a virtual fitting room
By using geo-located RFID tags, fitting rooms can track items, display available colors and styles, recommend matching garments, and provide relevant product information.
Contactless payments are available
Contactless payments refer to any transaction that is done using a mobile phone, contactless debit or credit card, or key fob. Once a customer has completed their purchase, they can use an RFID checkout counter to verify their identity using a biometric scanner and then make a payment.
Assist in the selection of goods
If warehouse rents increase by 12% in 2024. RFID technology means that retailers can store merchandise at high places because RFID technology can help pick up goods. For example, RFlale has created a drone that can scan RFID tags and locate products inside the warehouse. If an item is stacked on a high shelf, the drone will remove it.
Track the temperature of your cargo
Some products, including perishable goods, need to be stored at specific temperatures. Sensors inside RFID product tags can monitor temperatures and keep temperature logs inside tags.
Improve store inventory accuracy
The typical retail inventory process is time-consuming and manual. With RFID, you can inspect your entire shipment at once without having to rely on individual package scans and receipts. It can also be used to find items, reduce cycle counting time, and automatically reorder products at safety stock levels.
Advantages of RFID technology:
Improve inventory management
RFID provides retail brands with greater inventory accuracy and inventory reliability, resulting in increased sales and customer satisfaction. It also provides real-time specifics on stock levels and inventory details such as quantity, model, color, and size.
Since RFID tags can track all items, you can eliminate inventory issues and improve the security of your store. Scanning products with RFID readers can also reduce inventory time, which can increase productivity and reduce physical work for employees. This allows employees to spend more time on customers and sales rather than taking inventory. With a handheld scanner, a person can scan multiple items in a matter of minutes, allowing for more frequent (and faster) inventory counts.
RFID antennas and readers do not require line of sight to scan RFID tags. You can automatically receive shipments without any separate pallet or item-level scanning. Walmart announced the expansion of its RFID program this year, requiring all first-class merchant products to be tracked through RFID.
Improve loss prevention
In today's economy, retail stores are under tremendous pressure. E-commerce pricing is more competitive, while retail store overhead fees are on the rise. Retailers also need to reduce in-store shoplifting and employee fraud – a problem that costs $94.5 billion in the U.S. alone. To overcome the challenges, retailers are turning to RFID technology to curb theft and reduce management errors.
Faster checkout
More and more retailers are looking for ways to disrupt one of the least popular parts of the shopping experience – checkout.
Since the checkout experience is a key point for both retailers and shoppers, some experts** stores of the future will not have a checkout at all. So, the retail industry is excited about the opening of the first Amazon Go store, which enables customers to take items off the shelves and walk straight away.
The store automatically charges each shopper's Amazon account for the item and sends them a digital receipt for the purchase. Forbes calls Amazon's "just walk out" technology the greatest retail innovation of the next 30 years. This case also marks an important turning point in RFID technology. More and more retailers are looking for ways to improve the checkout experience and shopping experience.
Increase the efficiency of buying, pick-up in-store (BOPIS).
*Buying, in-store pickup is the customer service that every retailer should provide. It's a great way to increase in-store traffic and close the gap between the in-store shopping experience. In a 2021 survey, 56% of shoppers have used click and collect services 6 or more times in the past 12 months, with more than 8% using them more than 20 times.
Since RFID tracking gives you greater inventory accuracy, you can consistently offer Bopis as a service. Without accurate, real-time inventory counts, you may have items that aren't actually available for pickup in the store.
Article** Shopify Author | michael keenan