5 Ways That IoT Is Revolutionizing e-Commerce

As the internet moves out of our computers and into every item in our homes there are fewer barriers than ever before for consumers. E-commerce vendors keeping up with the pace of IoT (internet of things) will have access to emerging markets where customers make instant purchases. Smarter supply chains are reducing the labour costs of e-commerce and hyperpersonalization is enabling better marketing through big data. Here are five ways that IoT is revolutionizing e-Commerce.

1) Smart Supply Chains

Thanks to IoT and RFID tags(radio frequency identification tags) e-commerce store managers now have access to unprecedented detail of information about the supply chain of their products. RFID tags enable businesses to track their products every step of the way, meaning that supply chain disruption can be caught instantly and rectified before a small ripple affects the rest of the business.

This detailed information can be passed on to consumers to provide a better experience. Consumers value the ease of e-commerce and digital shopping and being able to receive products with same-day shipping has been one technological advance that’s boosted e-commerce. Now IoT enables real-time tracking data so customers never need to miss a parcel again.

2) Revolutionized Inventory Management

The IoT and RFID tags have enabled smart inventory management as all the information about a product is available instantly – not just stock numbers but also expiration dates, which means shipping can prioritize items approaching these expiry dates ensuring e-commerce businesses suffer less loss of stock. The IoT has also enabled customers to receive real-time inventory information, helping them understand when a product is in short supply and to encourage them to order it.

The really innovative move allowed by IoT in inventory management, however, has come in the form of smart shelves which track stock levels and can re-order stock as it begins to dwindle. Smart shelves can be programmed to understand demand data and to accommodate seasonal variations, massively reducing the human labour required in stock management.

3) Smart Homes

Increased connectivity of everyday items through IoT is creating a rise in smart homes where multiple devices intersect with e-commerce to disrupt the sector and enable greater connections between consumers and vendors. Amazon briefly produced a “dash button” – a device which enabled consumers to reorder household items at the touch of a button. IoT will be able to render such a button outdated as fridges, for example, can independently assess the need for perishable items such as milk and reorder it on behalf of consumers.

E-commerce vendors can leverage these advancements by making it easy for consumers to set up automated purchases. Amazon is already offering discounts for customers who “subscribe” to repeat purchases, for example.

4) Hyperpersonalization

The IoT is enabling data to be recorded at unprecedented levels, giving businesses new insight into consumer needs. E-commerce businesses need to maximize the information they have about customers in order to provide tailored marketing material and unique offers and discounts.

IoT can facilitate this in radical new ways. For example, businesses will have access to the functioning of household items – if a refrigerator has poor energy efficiency, customers can be targeted with this information and more climate-friendly products. If data on the age of customer products implies they may be searching for an upgrade, timely offers can be targeted to bring customers to specific vendors.

5) Virtual Reality Shopping

Top-end brands such as Mastercard and Swarovski have been introducing a revolutionary shopping experience for their customers, enabling virtual viewing and a highly tailored environment for customers. Although this technology is in its infancy, the spread of VR headsets will enable e-Commerce stores to offer a virtual tour of shops complete with sales assistants and display cabinets that enable them to provide great customer experience.

The Future Of Things

In the coming years IoT is going to have an enormous impact on every aspect of our lives and e-Commerce is no exception. Revolutionary innovations are taking place in e-Commerce thanks to IoT, bringing customers and vendors closer than ever before.

Kristin Herman is a writer at Ukwritings and Academized. She writes articles for magazines and blogs, such as Boom essays on technology, marketing and digital commerce. She loves live music and is a regular festival attendant through the summer season.