IoT has successfully entered almost every industry today and has revolutionized e-commerce in several ways. With consistent communication across many devices with strong sensors and features, a large number of IoT-based devices consistently exchange data with many other devices with the help of internet. In simple words, IoT has huge array of benefits and use cases for both business and consumers.
IoT creates an excellent digital footprint to link procedures, customers and things directed towards providing people with the best possible personalized experience, boost opportunities for companies to earn revenues and create a transparent supplying chain. Computation and machine learning have helped machines to interact with people in a meaningful way to provide improved customer experience.
What is IoT?
IoT is the acronym for Internet of Things and it refers to the connectedness, which electronic devices, machines and other devices possess with the internet and with one another. For instance, you can consider an IoT network as a network of electronic items, physical devices, home appliances, cars and various other things monitored with the help of sensors. These sensors allow real time monitoring, condition and status of different devices to create a constant information flow, thanks to the connected sensors, actuators and the software program.
What is the impact of IoT on eCommerce?
Whenever we talk about latest technology to operate e-commerce sector successfully, we observe that IoT has created a strong buzz. This is because; you will find many IoT-enabled devices exchanging data online with each other to help e-commerce businesses to perform their various operations in an efficient way. With the rising trends of online shopping, business owner are also enthusiastic about employing IoT to their ecommerce website development for customer-facing innovation. Based on huge revolution and influence of Internet of Things on E-commerce, we can say that investment in the retail industry because of IoT will hit 2.5billion dollars by upcoming 2020. If this is not enough, you will find by the year 2021, IoT will make significant influence in the technology sector in the following mentioned ways.
- Drastic increase of 68percent in the investment of e-commerce industry based on cognitive computation and machine learning
- Significant 57percent increase in automation associated with e-commerce investment
Tracking of inventories has become easy by the help of Internet of Things. RFID tags and IoT sensors manage inventories in real-time to streamline the entire workflow. They also made significant improvement in the tracking and monitoring of inventory items and thereby, reducing human errors at the time of reordering any item. Online sellers thus store each detail, such as name of manufacturer, type of product, batch IDs of products and expiry date of various items automatically without the intervention of human beings. In addition, smart shelves reduce the dissatisfaction of customers because of out of stock products. IoT operated systems are able to track exact numbers of sold products and place automatic orders once the stock enters the reorder level.
Less Trial and Error
IoT devices perform various other functions than simply connection machineries or devices with the help of internet. They come with the ability of tracking product or machine performance and identify malfunctions and defects. This reduces the complete trial and fail/error procedure and gives appropriate information on the performance of a particular machine or device. IoT devices provide detailed information on malfunction and helps in the ramification of any problem in no time and with 100% accuracy to boost the overall customer experience.
Enhanced User Experience
IoT enabled devices are able to report problems even before customers notice them. In this way, company can anticipate possible complaints, identify them and resolve them easily as possible. Thus, ability of recognizing the legitimacy associated with reported problems helped the entire e-commerce industry in an immense way. Indeed, legitimacy has resulted in highly improved customer satisfaction and awesome experience. Moreover, IoT allows the business owner to aggregate data with action that will open the doors of many customer engagement strategies including warranties & maintenance.
Improvement in Efficiency
IoT has resulted in significant improvement in the operational efficiency. Improved efficient operations also lead to superb user experience. For instance, users can check the warranty information to eradicate any confusion and avoid any scope for dispute. Integration of logistics, inventories and customer-facing aspects present in the business indicate less intervention of human beings leading to significant boost in the operational or production efficiency.
Personalized Customer Service
IoT operable devices refine the customer engagement based on identity-based information and geographic location and so on. Details about identity and geographical location make personalized marketing easy to meet with the requirement of a specific customer. Indeed, personalized experience associated with customer service boosts customer engagement drastically. IoT systems have helped many retailers to come up with a highly refined and customized e-commerce experience for every customer, which in turn result in drastic improvement in conversions.
Automation, Cognitive Computing, and Machine Learning
Both cognitive computation and machine learning use analytics and related predictive tools for personalizing the overall customer experience in the e-commerce industry. These tools manage predictability and demand of inventories.
Automation on the other side utilizes real-time inventory system to track various in-store inventories precisely and create efficient product shipping process. In this way, automation helps customers to find what they exactly looking for over the internet. Collective usage of cognitive computation and machine learning thus created a highly refined experience for customers, while automation has helped obtaining exact information on inventory to create improved customer experience.
Based on innumerable numbers of IoT operable devices and latest IoT technologies, we can conclude that it would have a significant influence on the entire ecommerce business. Concisely, we should say that IoT is helpful to-
- Create an efficient, smooth and seamless e-commerce experience
- Refine as well as personalize the overall customer experience
- Provide accurate and detailed information about present condition of a product or machinery
- To track the delivery of products and monitor it on real-time information
In this way, IoT will continue to gain popularity and traction in the ecommerce sector, online retailers will give value to the benefits they obtain from IoT based on overall customer experience. Therefore, IoT is fully set to continue with the connection of further more devices to refine the entire e-commerce process.