3 Ways IoT Is Changing The eCommerce Industry
Internet of Things is brewing a storm in the eCommerce sector.
The basic idea behind the Internet of Things is to form a network of distinct internet-enabled devices(physical), software and sensors together through the medium of internet so that they are connected together.
This network is then used to share data and exchange information between apps or users.
So how does IoT open up a host of possibilities for your business?
With an Internet of Things based system, it becomes easier to gather data, relay it to cloud and then trigger a real-time response or action. This is why all successful businesses develop IoT based software or mobile apps to get the best for their business.
Also, the now prevalent “Internet of Things” represents a paradigm shift in how we imagined technology and its role in the world. The shift can be seen not just at an individual level but also in businesses, employees, customers and in anybody else who is involved in the process.
When running a business, there are several parameters to take care of which might seem uncomplicated but are actually complex. IoT can make the job easier and handle a lot of things. IoT can be used :
- For personalizing experiences
- For automating services
- For optimizing processes
- For simplifying the buying process
- For simplifying decision making
- For using data insights to improve operations
These are just a few advantages of using IoT in your business. In addition to that, IoT has bought a sea wave of change in many fields apart from changing the eCommerce industry.
IoT has been instrumental in the development of smart homes, wearable technology, tracking pollution, automating traffic signals, self-functional parking and garages and many more fields. On a wider scale, IoT is being used in building smart cities.
In the retail sector as well, IoT has made its mark. Some of the best examples are beacons, smart shelves, digital price tags and smart digital screens.
As a result, now the stock checks can be done speedily, data can be tailored to suit the customer’s needs, thefts can be prevented and huge queues can be managed efficiently.
Upto a great deal, IoT has influenced the buying choices of people and changed the way people buy. Thus, it has altered the customer experience altogether. It has benefited businesses who are into eCommerce as it has changed the entire buying and selling process. Wondering how?
Here is a rundown of how IoT has changed the way eCommerce industry functions:
1. New subscription and renewal models for businesses
We all are aware of what a subscription model is. You pay a pre-decided sum for a product/service which will be delivered to you every month.
But, with IoT, the traditional subscription model can be further extended to the eCommerce business as well. Top ecommerce companies use IoT for optimizing their sales maximizing their profits.
How do they do that?
For startups or medium scale businesses, there are limited resources. In case, there is a huge the demand for the product/service, production is of primary importance. Maintenance becomes secondary. In such cases, IoT sensors connected to the machines send time-to-time automated alerts for renewal, repairing or refilling.
When it comes to large-scale industries, IoT based sensors can also be programmed to send alerts when the warehouse is empty. All the inventory management firms use IoT for automating their entire process.
2. Instant and automated purchasing for customers
Automated purchasing- as the name suggests, automated devices will order the products based on your preference. You just need to set it up accordingly.
Well, there are many possibilities when eCommerce platforms are integrated with IoT. For example, there are apps which sync to your account on the eCommerce platform and send you an alert when you are running low on something and automatically buy the product for you.
eCommerce giant Amazon has integrated an Amazon Dash Button which does the job for you. It is a Wi-Fi connected device which ensures you never run out of your everyday essentials.
3. Improvement in the supply chain
Integrating IoT in supply and logistics paves a way for improving the entire supply chain and optimize the whole logistics process. Also, critical decisions can be taken without relying on the vendor as the entire process would be automated.
Currently, many businesses use RFID tracking for their products, but with IoT, you can get more involved in the shipment and tracking process.
Let’s say, you are shipping some perishable items. So, by integrating IoT technology, you can get a real-time notification informing you about the current state of the product. So, you can take preventive measures to avoid the damage from happening.
Integrating IoT will also help you improve on the delivery times. As you will receive timely updates in accordance with factors like traffic or weather, unexpected delays can be averted. Hence you can give your customers a more accurate and automated notification of delivery times instead of a broad time-slot.
Hence, it will help in improving efficiency and speeding up the entire shipment and delivery process.
EndNote:
Internet of Things has revolutionized the eCommerce industry and has integrated a customer-centric approach. But it’s only the beginning.
Well, agreed, there might be a few security concerns. You might wonder if devices are collecting your data, who owns that information and how secure is it? Can this information be stolen?
These are some of the issues which are still unresolved, but with the rate at which advancements are happening in this field, even this problem will be solved soon.
Lastly, not just the eCommerce industry, IoT will create an impact and make an influence in all the other fields as well.
