RFID Cost vs NFC and Barcode - Inventory Tracking

We often encounter clients that are interested in tracking their inventory using RFID. They heard that it’s a great technology that would increase efficiency and simplify their daily efforts of tracking their inventory, which they have been (until now) doing manually. While this is true, they often don’t realize that all comes at a cost (or they do but have no idea about the RFID cost), there are really no plug and play solutions (due to the fact that everyone’s environment, business process and items are different) and pure RFID may not be the most suitable way to go. Therefore, we have decided to bring a little bit more clarity into choosing which technology would suit which instance and what it means as far as costs and timelines.

Let’s break each technology down by the components that you will need in order to deploy an inventory tracking system. All of the categories below apply to all three systems, whether it’s RFID, NFC or Barcode but in slightly different form factors or function.

1. Tags or labels
2. Readers or scanners
3. Printers and/or Encoders
4. Software
5. Labor (Tagging of existing inventory, system installation, project management, etc.)

What Is RFID Technology for Inventory Tracking?

As far as automatic identification, you cannot do better than RFID. While the technology offers various read ranges (depending on frequency, tag size and environment, using UHF frequency, which is the most commonly applied for inventory tracking, you will achieve read ranges from about 3 to 15ft, plus minus few feet), the fact that you don’t have to point at each tag individually to read it (like with barcode), and therefore, you can collect inventory of hundreds of items in one swoop of a handheld or one pass by the fixed reader, recommends it as the way to go.

UHF passive RFID mentioned above is the most common technology used for inventory tracking. However, there are also other technologies used such as Passive Low Frequency LF RFID at 125 kHz (short read ranges but good penetration of materials) or Passive High Frequency HF RFID (short read ranges, but small tags and good penetration of materials, this is often used in tracking pharmaceuticals). Active RFID in UHF or Microwave range can be also used for inventory tracking, where long distances and fast reading are necessary such as for container tracking, rail car tracking, toll collection and other applications. However, all information below pertains to passive UHF technology.

In order to implement an RFID Inventory Management System, you will need:

1. RFID Tags (mandatory) – one tag per tracked item
2. RFID Readers (mandatory) and antennas, Barcode Scanners (optional) – one per tracking point
3. RFID Printers Encoders (optional) – one per encoding/printing point
4. Software – RFID Inventory Management Software to Improve Visibility and Reduce Operational Costs
5. Labor (Tagging of existing inventory, system installation, project management, etc.)

1. RFID Tags for Inventory Tracking: Costs, Types & Best Uses

You will need to count one tag per tracked item aka amount of items you want to track = quantity of tags to order + extras (tag gets damaged, or new item needs to be tracked). Tag cost depends heavily on the quantity, as well as the type of the tag. Low quantities (100, 200, 300 tags) often incur extra cost as this amount is under the manufacturer’s or supplier’s MOQ (Minimum Order Quantity). The MOQ fee can virtually double or triple the cost of the tag. This shows that it may not be efficient to use RFID is you are tracking low volumes of low cost items since the ROI will be difficult to achieve.

Here are some approximate costs of basic types of tags (ballpark information only):

Wet inlay (RFID chip and antenna on a substrate with adhesive, sometimes printable)
Smart label
Metal mount hard tag (higher and lower price range – these differ by size, ruggedness, performance and mounting method)
High temperature hard tag
Flexible laundry tag

Comparison of various types of UHF passive RFID tags and their pricing depending on their quantity. — Comparison of various types of UHF passive RFID tags and their pricing depending on quantity.

Here are some examples of RFID tags for the above categories:

Wet Inlay or Smart Label: TagMatiks Kickstart 4″ x 1″ RFID Labels

Metal Mount Hard Tag (higher price range): TagMatiks Gorilla Long RFID Tag

Metal Mount Label (lower price range): TagMatiks On Metal RFID Labels

High Temperature Hard Tag: TagMatiks Autoclave Tolerant UHF RFID Tag

Flexible Laundry Tag: TagMatiks Flexi 3.4″ x 1″ RFID Tag

In order to select the right tag for your needs, refer to our articles on:

2. RFID Readers: Best Options & How They Impact Inventory Accuracy

With RFID readers, you will need to count, one reader per one tracking point. Here you have a choice between fixed readers (these will be permanently installed at a location that tracked items often pass by/through, such as dock doors or entries and exits from buildings, rooms or other areas) and handheld readers (these are portable and can be carried from area to area, while doing the inventory. This provides slightly less automation, however, it may be sufficient for smaller operations or where there is no need for real time visibility). You can also use a combination of both that will provide you with the best flexibility.

The cost of readers does not usually depend on quantity (unless you are ordering hundreds) but mostly on functionality and design. Please be aware that often the cost of a reader is not final as you will need to purchase also power supplies and power cables, cradles for handhelds, mounts and not to mention antennas and corresponding cables.

Fixed reader will therefore require:

The reader itself
Power supply and power cable (both are often sold separately, this is due to the cable having different ends for use in different regions of the world, i.e. UK or EU have different sockets than US)
Mounting (whether a bracket or a full portal)
Antenna (unless the reader comes with integrated antenna, which has its advantages and disadvantages). Antenna cost depends on the design, size, tuning, etc.
Antenna cables (unless the reader comes with integrated antenna, then you will not need cables, only if you chose to attach another external antenna). Cable cost depends on the loss and length.

There are some exceptions to the above, where you can find a fixed reader that is powered over USB or Ethernet and therefore you will save on power supply and cable, but must have the USB or Ethernet cable and in case of POE also appropriate POE receptacle on the wall.

Here are some examples of fixed RFID readers and antennas:

Readers with integrated antennas: Zebra ATR7000, Impinj xArray, Caen Hex

Readers without integrated antennas: Impinj R700, Zebra FX9600, Caen Quattro

RFID Antennas: Times-7 A5010 , CSL CS776 , TronRFID TR1010

HANDHELD (MOBILE) READERS

Handheld reader will require:

The reader itself
Charging cradle + power supply + power cable (more convenient but optional, often you can charge a handheld with supplied USB cable using a PC).
Smart Phone or Tablet (optional) – in case of sled readers, when a handheld gun uses attached smart phone or tablet for user interface and processing with an app.

Ballpark Cost of Handheld RFID Reader Options

Here are some examples of handheld readers and cradles:

Fully integrated handheld readers: Zebra MC3390R, Zebra MC3330R

Sled handheld readers: TSL 1128 Sled, Zebra RFD40 Sled, CSL CS108

Cradle: Zebra 3-slot Cradle

To learn more about various types of reader and how to select the best one, review our article on Interrogation zones and articles on How to Select an RFID Reader and How to Select an RFID Handheld.

3. RFID PRINTERS ENCODERS

RFID Printers Encoders are used to print information on smart labels or wet inlays and encode data into the RFID tags. This is a good option for high volume tagging.

If you don’t need to print on the label, you can do the encoding only with a handheld and save the cost of the RFID printer encoder, however, this is a slow process and good only for low volumes.

Sometimes, you can just print information on labels using a regular barcode printer (not RFID) and either use pre-encoded data already on the tag or encode it using a handheld. This is a much slower process and suitable only for low volume tagging.

Optionally, you can also have your labels or tags pre-printed and pre-encoded, which will save you some hassle and printer cost, on the other hand, if you need to make changes or quickly generate more or custom prints and encodings, you are out of luck.

When pricing printers, don’t forget about the ribbon or printer cartridge, if you use thermal transfer media (most common for industrial applications and most durable).

Ballpark cost of RFID Printer Encoder Options

Here are some examples of RFID Printers Encoders:

Industrial printers: Zebra ZT610 , Zebra ZT620 , Zebra ZD621R

Enterprise printers: Zebra ZT411, Zebra ZT421

Learn how to select the right RFID printer encoder and supplies here.

4. RFID Inventory Management Software to Improve Visibility and Reduce Operational Costs

When paired with RFID technology, inventory management software becomes significantly more powerful, automated, and accurate than traditional manual or barcode-based systems. Instead of relying on individual scans or manual data entry, RFID enables the software to collect information automatically and in real time as items move through the facility.

RFID-enhanced inventory software provides:

Real-Time Visibility

RFID readers continuously capture item movement, giving the software a live, up-to-the-minute view of stock levels, locations, and asset status. This eliminates blind spots and helps businesses make faster, more informed decisions.

Automated Data Capture

Unlike barcodes, which require line-of-sight and manual scanning, RFID tags can be read in bulk — even hundreds at once. The software automatically updates inventory records without human intervention, dramatically reducing errors and processing time.

Improved Accuracy and Traceability

Every tag read is instantly logged by the system, creating a precise digital trail for each item. The software can track receiving, put-away, picking, cycle counts, and shipping activities with accuracy levels often above 99%.

Exception Alerts and Smart Notifications

RFID-enabled software can automatically flag discrepancies such as:

Items placed in the wrong location
Unauthorized movement
Low stock levels
Missing or unscanned items during a cycle count

This proactive intelligence helps prevent inventory shrinkage and operational delays.

Workflow Automation

RFID allows the software to automate common inventory tasks such as:

Cycle counting
Order verification
Asset check-in/check-out
Replenishment triggers
Compliance and audit reporting

These automation capabilities reduce manual labor and improve operational efficiency.

Seamless Integration With Existing Systems

Modern RFID inventory platforms integrate with ERP, WMS, MES, and POS systems. The RFID layer feeds accurate, real-time data into these platforms so that planning, forecasting, and operational tools reflect what is happening physically on the warehouse or shop floor.

Enhanced Operational Insights

With the high-volume, continuous data that RFID collects, the software can offer:

Heat maps of item movement
Dwell time analytics
Inventory turnover insights
Optimization recommendations

This transforms inventory management from a reactive process into a data-driven, strategic operation.

Ballpark-RFID-Cost-for-Inventory-Tracking

The Part 2 of the Comparison of RFID, NFC and Barcode for Inventory Tracking discussing NFC and Barcode and providing a total overview of all technologies can be found here.