Retail RFID Labels and the Walmart RFID Mandate

RFID is a hot topic across the retail, logistics and consumer packaged goods (CPG) industries and Walmart is one of the reasons why. Starting in 2020, Walmart began requiring its suppliers to add RFID tags to certain types of merchandise to enable more sophisticated inventory management practices. The so-called Walmart RFID Mandate has since expanded to include additional product categories.

Countless suppliers have had to adapt their packaging and labeling practices to meet the Walmart RFID Mandate. While no doubt challenging, those suppliers are also reaping the many rewards of RFID packaging and RFID labeling in their own business operations.

This blog will explore RFID technology, the Walmart RFID Mandate, and the advantages of RFID for retailers and manufacturers alike.

What does RFID stand for?

RFID stands for “radio frequency identification.” In simple terms, RFID technology uses tiny microchips to store and communicate information that is then transmitted to reader devices. There are essentially three components to RFID technology.

RFID Inlays 

Embedded chips and antennas that store and transmit data.

RFID Label Readers   

Devices that capture the information transmitted by the RFID tags.

RFID Label Software 

Platforms that manage and analyze the RFID data, turning it into actionable business insights.

What are RFID labels and how do they work?

RFID chips and antennas are commonly embedded in labels that are then applied to consumer products. These RFID product labels, also known as RFID tags, make it possible to track and monitor the movement of items throughout the supply chain. Generally speaking, RFID label manufacturers construct labels containing these seven layers.

RFID Label Face Material  

The top layer is the visible surface of the RFID label, often containing printed information, branding or other relevant details.

Adhesive Layer #1 

The next layer adheres the face material to the RFID inlay.

RFID Inlay  

The core technology of any RFID label, the RFID inlay contains an RFID chip and antenna, allowing communication with RFID readers.

Adhesive Layer #2  

Another adhesive layer affixes the RFID inlay to the RFID carrier material.

RFID Carrier Material 

This substrate or backing is designed to support and protect the RFID inlay.

Adhesive Layer #3   

An adhesive bonds the RFID carrier material to the label liner, ensuring the label's stability and integrity during manufacturing and application.

RFID Label Liner  

The bottom layer, typically a release liner, serves as a protective layer during the manufacturing and handling of the RFID label until it can be applied to the finished product.

What is RFID packaging?

RFID packaging is essentially synonymous with RFID labeling. Whether it’s flexible packaging, a folding paperboard carton or some other packaging format, RFID labels can be applied or RFID tags embedded to create RFID-enabled packaging.

What is the Walmart RFID Mandate?

In 2020, Walmart began to require its apparel suppliers to apply RFID labels to items. The mandate soon expanded to include electronics, toys and various types of home goods in 2022. In 2023 and 2024, the mandate grew to include everything from sporting goods to automotive supplies. Most other categories of merchandise found in a Walmart store now fall within the mandate as of 2025.

The implication for suppliers is clear. No RFID label? Your product can no longer be sold in a Walmart store. This mandate has helped accelerate widespread use of RFID tags in retail and among manufacturers.

Are RFID tags worth it for retailers?

From the vantage point of a retailer such as Walmart, RFID tags are most definitely worth the effort. Here are four key benefits for retailers of using RFID labels.

1. Inventory Management: RFID technology provides real-time visibility into inventory levels, allowing retailers to track the location and quantity of products accurately. This reduces the risk of stockouts and overstock situations, significantly improving overall inventory accuracy.
2. Operational Efficiency: By automating inventory checks and reducing manual labor, RFID technology streamlines store operations. This leads to significant time savings and reduces human errors, making inventory management more efficient.
3. Supply Chain Visibility: RFID labels allow end-to-end tracking of products from production to sale, increasing supply chain visibility. This helps in identifying and resolving issues promptly, improving overall supply chain efficiency.
4. Customer Experience: RFID labels can speed up the checkout process by allowing multiple items to be scanned simultaneously, reducing wait times and enhancing customer satisfaction. They also enable personalized shopping experiences by collecting data on customer preferences.

Are RFID tags worth it for manufacturers?

It’s important to note that the suppliers and manufacturers who must meet the Walmart RFID Mandate also benefit greatly from the use of RFID labels.

1. Inventory Accuracy: RFID technology can give a manufacturer precise control over inventory by automatically counting items in the warehouse and updating inventory levels in real-time. This reduces discrepancies caused by human errors and lowers inventory costs.
2. Production Efficiency: Manufacturers can use RFID labels to quickly identify and track the location, status and production progress of each item or material. This real-time data helps in optimizing resource allocation, reducing wait times and eliminating production bottlenecks, thereby significantly improving production efficiency.
3. Quality Control: RFID can be used throughout the production process to record product information and quality inspection data. This enables manufacturers to detect and address quality issues promptly, ensuring continuous improvement in product quality. Likewise, RFID labels also facilitate after-sales service and product traceability.
4. Supply Chain Visibility: RFID technology provides real-time tracking of products from raw materials to finished goods. This transparency helps manufacturers monitor the movement of goods throughout the supply chain, identify potential issues early and ensure timely deliveries to key customers — such as Walmart.

Are RFID tags anti-theft devices?

While not primarily intended to serve as anti-theft devices, RFID labels and packaging do play a role there as well. Because they make it possible to track inventory at the item level, RFID labels can be used to detect if an item being returned to the retailer was actually purchased, thus preventing return fraud. They are also a powerful deterrent to the counterfeiting of high-value consumer items.

Taylor: Your RFID labeling and packaging resource

Taylor is one of the leading providers of custom label printing solutions in North America. Our capabilities include RFID packaging and labels of nearly all types.

Taylor’s knowledge of radio frequency identification technology allows us to consult with you on the many options available including:

•   Low frequency, high frequency and ultra-high frequency RFID systems.
•   Active, passive and semi-active (semi-passive) tags.
•   Tag materials including BOPP, PET and DT film and paper.
•   Antennas, readers, printer encoder systems, label stock and more.

If you’re a manufacturer exploring RFID labeling solutions, contact your Taylor representative today. We welcome the opportunity to discuss your project with you.