Smart inventory tags are described herein. In an example, a service provider can determine interaction capability(s) for a tag associated with an item in an inventory of a merchant. The tag can be configured to be positioned proximate to the item offered for sale by the merchant at a physical store of the merchant. The service provider can receive an indication associated with a selection of at least one interaction capability of the interaction capability(s) and, based at least in part on the indication, the service provider can generate encoded information associated with the at least one interaction capability. The service provider can generate an instruction for generating the tag including the encoded information to enable a presentation of a user interface associated with the at least one interaction via a device operated by a user at the physical store of the merchant.