Online eCommerce stores generate a significant portion of the revenue during the holiday or festive season. This is...
The lifestyle of consumers is evolving and it has become more adaptive to online shopping. As more and more customers are preferring to shop online, merchants are establishing online stores to maintain their existing customer base. Besides this, it is also crucial to delight the customers by providing them with unique experiences. One of the many technologies which are evolving the eCommerce industry is the Internet of Things (IoT ).
IoT-enabled appliances transfer data with each other through the internet, accommodating retail and e-commerce businesses to manage essential operations efficiently. As one research study suggests, by 2020 retailers will spend about $2.5 billion on IoT. This blog is a comprehensive guide that will show the powerful impacts of the Internet of Things on the eCommerce industry.
But, before we move on to exploring the idea, let’s understand the basics.
What is IoT?
The Internet of Things is the system of interrelated computing devices that are interconnected with each other with a medium of the internet to transfer data without necessitating human-to-human or human-to-computer interaction. With the help of connected software, actuators, and sensors it is possible to monitor real-time, and a constant flow of information.
To put it briefly, IoT is the electronic device that collects the information and sends it to another device, receives information and acts on it or performs both activities.
Since IoT has evolved, it helps to automate many complex processes for businesses. And, today most of the companies are taking advantage to improve efficiencies and productivity of their business, the eCommerce industry is not the exception. But, how IoT can empower the E-commerce industry?
Let’s look at how IoT is impacting the e-commerce businesses and helping them to grow faster
Efficient Supply Chain Management
Uninterrupted and dynamic supply chain management is imperative to run smooth operations of e-commerce businesses. With IoT, supply chain management is a no more complex procedure. It facilitates the tracking of items directly from the production stage to delivery at the final destination. According to research, more than 80% of companies who adopted IoT, noticed increase in their business productivity and efficiencies.
The technologies like RFID and GPS help in tracing the items in transit by providing absolute information about location, temperature, distance, and more. One can also know the route and speed of the shipped products, along with forecasting the arrival time periods. There are minimal chances of losing shipments or misplacing items with IoT. Sensors can be applied in transportation vehicles for real-time monitoring of the shipments.
Real-time Inventory Management
Managing inventory for an eCommerce store is a daunting task. Internet of Things allows the merchants to keep accurate records and management of inventory. IoT sensors and RFID tags offer easy management of inventory in real-time and also streamline the entire flow. With the improved monitoring and tracking of various inventory items, it reduces errors in reordering items.
Details such as product type, manufacturer’s name, batch ID, expiry date, etc. can be automatically saved in the system without manual intervention. Smart shelves are useful in overcoming customer dissatisfaction. IoT, the smart technology, is capable to track the number of sold products and place automatic orders. Thus, one of the most complicated tasks, inventory management can be performed easily by using IoT.
Personalized Customer Experiences
IoT enables e-commerce businesses to offer personalized services to their customers. It helps to recognize shopping patterns in search trends and online browsing so that eCommerce businesses can sell targeted products to their customers. IoT will allow presenting products, services and offers to the customers according to their choices.
Generally, with more data available to marketers about consumer behavior, it will be easier to attract potential consumers and influence their purchase decisions. It enables the 360-degree view of customers’ activities, which is important to deliver personalized experiences. An IoT device can help detect customer issues and responding to those issues even before they are notified. This helps the businesses in envisioning possible complaints, driving prompt resolution, and flawless customer experience.
Automated devices can order products based on your preferences. You just need to adjust the settings. Well, there are many instances when eCommerce platforms are integrated with IoT. For example, some apps sync to your account on the eCommerce platform and send you an alert when the products are running out, and it can also automatically buy the product for you.
For instance, the eCommerce giant Amazon has integrated an Amazon Dash Button which does the job for its customers. It is a Wi-Fi connected device that assures a customer never runs out of the daily essentials.
Improve Revenue Opportunities
IoT opens the way to new business opportunities by assisting companies to benefit from renewed business models and solutions. IoT-driven modernization advocates in formulating powerful use cases, abbreviate time to market and augment return on investments. IoT has the future to transform the ways companies are reaching the global audience. Leveraging the connectivity of IoT can help enhance the customer experience.
Hence, IoT seems the futuristic solution for eCommerce businesses, and it may prove a dire need to offer a solution that customers are looking for. By blending IoT with their eCommerce platforms, companies can get enormous benefits like increased revenue, inventory management, personalized customer experiences, supply chain management, and many more.
With the increased demand for online shopping, online businesses need to focus more on upcoming technologies to maintain their business growth. Thus, integrating an IoT app with your eCommerce business can bring new fresh opportunities expanding your profitability.
If you want to develop an online store for your business, you need to consult with an experienced IoT development firm that can understand your requirements and deliver the software product on time.