As consumers migrate from physical stores to online stores, it is paramount that players in this industry evolve to match their pace. To do that, eCommerce stores need to seek innovative ways to make consumers’ experiences as enjoyable as possible and enhance their loyalty. This is where the Internet of Things (IoT) comes into play. If you are curious about the uses of the Internet of Things in e-commerce and its meaning, then keep reading to learn more! For more information on the benefits of IoT in eCommerce check EPAM Anywhere blog.
What is the Internet of Things (IoT)?
The Internet of Things describes devices with software, sensors, processing ability and other technologies capable of connecting and interacting with other devices over the internet.
10 applications of Internet of Things in e-commerce
Devices with IoT applications exchange data with each other within an internet network which aids the e-commerce companies in these areas below:
1. Inventory Management
The IoT sensors and Radio Frequency Identification tags(RFID) have changed the inventory arrangement approach entirely. These tags and sensors allow the learning of every essential item information like a product’s availability, its expiration date and the type of product, without the need to involve any human.
Concerning customers, the sensor and tag allow them to confirm the product’s availability and aid business owners in monitoring the quality and quantity of an item. Smart shelves make inventory management much easier by inspecting the number of items and placing an order for new batches to refrain the item from being unavailable.
2. Supply Chain Management
IoT devices ensure detailed and accurate tracking of product journeys in the process of Supply Chain Management. The RFID tags and IoT sensors help businesses stay updated with news about the product, from the location to the conditions. It provides precise arrival time and prevents wrong deliveries.
The devices also allow customers to keep track of the product location and arrival time at their doorstep. It can automate the delivery and shipping processes to avoid issues like missing shipments.
3. Information and Activities Customized for Individuals
IoT combines company data and personal data to provide customers with customized services. Some Retailers use customers’ social connections to offer more customized activities, information and data integration for homes or individual members to serve their customers better.
For instance, a connected car driver will get offers suited to them. Customers’ purchase choices might be influenced through the customer journey when Internet Of Things app engineers gain better access to consumer behavior insights.
4. Improved Tracking and Logistics
Using IoT in eCommerce, sellers have gained better insight into the process of order fulfilment so they can satisfy their online customer’s needs. For online companies, Internet of Things (IoT) technology keeps track of customers’ orders from the start (the time they are placed) to finish (their arrival at their doorsteps). Retailers can now track all items on the inventory, irrespective of location. And it can also help avoid traffic. GPS trackers are capable of detecting traffic and offering alternative routes.
Data like weather, traffic conditions, employees’ identities and location can be accessed by employing cloud-based technologies such as RFID and GPS and RFID.
5. Improvement in Consumer-Manufacturer Interactions
Thanks to linked appliances, manufacturers and consumers can enjoy a long-term relationship. For example, printer producers might directly offer printer cartridge replacements. Consumers will then recall the brand’s name even after they stop using the products.
Retailers can also, through IoT, build brand-new business models, like remote monitoring, performance analytics, and predictive maintenance for different items, which can bring in new income streams.
6. Customer Experience
Internet of Things (IoT) allows e-commerce businesses to stand out amongst their rivals. Different companies are using this to gather insights on items that are becoming popular on social media. IoT technology allows retailers to offer a more inclusive shopping experience with increased customization to suit their customers.
It can seamlessly help in tailored marketing and advertising, enabling e-commerce businesses to concentrate on a particular group of consumers. Also, It can accurately discover the different shopping patterns through online browsing and search trends, enabling businesses to sell selected items to their numerous consumers with little or no difficulty.
One of the major implementations of the Internet of Things in e-commerce is utilizing it to discover and eliminate different issues like cart abandonment, missing shipments, low engagement and return rate. This can be achieved by collecting and analyzing data, strengthening supply chain management and improving customer experience.
8. Performance Analytics
Performance analytics plays an integral role in ecommerce. With performance analytics, companies can notice if all the units meet their KPIs and when there is an issue with the outflow and inflow of driving patterns, customers’ location, products and other statistics.
9. Warranty and Maintenance
IoT technologies can serve as tools for remote assessment of items, forecasting their maintenance, and examining their performance. They assist businesses with extra data regarding the adoption of a product and also prevent breakdowns
if the sensors alert the company that their product is operating poorly, they can put a call through to the customer, notify the customer and volunteer to replace or repair the product to avoid any future difficulties. In case of a stolen or lost item, IoT assists in sending a notification to notify the user.
10. Maximized Income Potential
Thanks to IoT in e-commerce, business solutions and models are being re-strategized, giving way to new ones. Companies can now increase revenue, create compelling use cases and reduce time to market. IoT applications in eCommerce can change the way companies communicate with their consumers all around the globe.
IoT has given rise to eCommerce businesses due to the availability of microchips, sensors and actuators. Consumer experience will keep improving as many gadgets connect to the internet, acquire smart features, and gather more data.
IoT allows companies to see an increase in revenue, track losses and thefts, and customize the customer experience. Simply put, the benefits of the Internet of Things in e-commerce are evolutionary!