6 Benefits of Using RFID in Your Retail Business You Can’t Afford to Ignore

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With consumers using different tools and platforms to shop, such as smartphones, tablets, desktops, apps, and social media, retail businesses need to use the right technology to be at par with or stand out from their competition, and to enable customers to engage with them.

6 Benefits of Using RFID in Your Retail Business You Can’t Afford to Ignore

Radiofrequency identification or RFID is a type of technology that retail business owners can leverage to keep up with the times and demands of the consumers.

RFID counting systems are considered the future of the supply chain and inventory. For this reason, retailers will do well to invest in and use this technology.

Leveraging RFID in Your Retail Store

If you are investing in your first RFID system for your retail store, below are the benefits you can experience when you start using this technology:

1. Stay on Top of the Supply Chain.

A poorly managed supply chain can lead to various issues that can affect your day-to-day business operations.

You can stay on top of your supply chain business intelligence when you have an RFID system.

An RFID system makes inbound and outbound reading easier and more efficient. Moreover, you will be able to do this on an individual item level instead of by stock keeping unit or SKU, which means you can ensure that each product is accounted for at each stage of the supply chain.

The improved stock visibility can also lower the rate of shipping errors or picking mistakes since the items are detected by RFID readers and corrected by the warehouse staff in due time.

Also, with the right RFID system, you can track the location and status of your shipments in real-time. Because of this, you will know where your package is, when it was received by the delivery center, and when you can expect to get it.

With this business technology, you can trace your orders more efficiently since it provides better item-level visibility across the whole supply chain. It also results in improved inbound and outbound shipping accuracy and smoother operational processes.

2. Improve Inventory Processes and Management.

RFID technology can improve various operations and your entire inventory management system significantly.

It can do so through the following ways:

It facilitates faster, easier, and more efficient receipt of supplies. Since RFID antennas and wands do not need a line of sight to scan RFID tags. As a result, your team can store shipments and record them quickly into the system.

It helps your team find supplies quicker. RFID systems with handheld wands usually have the ability to track items in the store or warehouse using technology similar to metal detectors. They will beep faster as the device approaches a given item, enabling them to locate what they are looking for in the shortest time possible.

It enables you to skip formal inventory counts. Since an RFID system can improve inventory accuracy significantly, an RFID-based inventory count may be allowed by your auditor if you show a history of precision. This eliminates the need for time-consuming and error-prone manual inventories.

All these advantages will improve warehouse- and store-level inventory processes and data accuracy, which will have a positive impact on your sales.

3. Boost Product Availability.

Ensuring you never run out of products is crucial for maintaining retail sales.

Unfortunately, lack of forecasting and preparation and other mistakes can cause you to run out of stocks. This will lead to loss of sales and poor customer satisfaction, which will also affect your overall revenue.

You can avoid running out of stocks due to inefficient replenishment processes and stock count errors with an RFID system since it improves your inventory accuracy.

Your RFID system can allow you to order supplies automatically at specified stock levels. You can program it to order items that are near or below the number you specified. This feature can help you maintain a better working relationship with your supplier if you own a grocery store.

Because of this, you will avoid running out of products and ensure they are always available for your customers

If your system does not have an automatic reordering function, you can use its real-time view feature to get replenishment alerts when your stocks are running low.

4. Enhance in-Store Traffic Patterns.

If you have a physical store, you can also use your RFID system to help you improve your customers’ shopping experience in various ways.

By integrating and plotting RFID-tagged item movement throughout a store, you can get insights into how your customers and products navigate your premises.

You can use the information you get to track in-store cart or product abandonment, eliminate physical pinch points, and monetize high-traffic end caps.

Additionally, you will be able to understand how certain items and product categories work in various paths of the store at different times and days of the week.

You can also use RFID tags to track employee movement throughout a store for training purposes or data collection.

 5. Improve the Checkout Process.

RFID can speed up your in-store checkout processes.

With RFID tags, your staff or even your customers themselves can simply place their purchased items on a conveyor, which will pass through a scanner that reads the tags on the fly rather than individual bar code scans.

Your staff or customers won’t have to scan each item individually and manually. The RFID reader will be able to recognize all the products inside the basket at once.

This facilitates a faster, less time-consuming checkout process.

It will also cut down the queueing or waiting time substantially, thereby giving your customers a better shopping experience.

6. Boost Security.

Lastly, you can also use RFID technology to boost security inside your retail store.

RFID is highly effective in reducing and even eliminating theft within retail stores. With all your products having tags, unscrupulous individuals won’t be able to take them out without asking for your permission or paying for them since scanners on the exits will set off an alarm.

You can also tag all company-owned equipment or supplies to reduce the possibility of theft within your premises.


RFID devices, such as smart cards and key fobs, are also effective in restricting the entry of people who are not allowed to enter such areas.

Since each individual is given access to different areas, you will be able to control not only who can enter, but also where they can and cannot go. This will deter theft not only of your supplies and equipment but also of sensitive information you have in computers or paper files.

RFID technology has a lot to offer to retailers. Take advantage of them now so that you can use them for the growth and success of your business.


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