How internet of things is shaping the future of ecommerce

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Internet of Things is a worldwide information infrastructure in which physical devices around the world are connected over the internet such that they are all collecting and sharing real-time data, sometimes without involving a human being.

By linking people, smart devices, and objects that were offline in the current e-commerce business model, generating unprecedented big data on product performance and customer behavior and experience hence ensuring more communication and action, IoT is ultimately shaping the future of e-commerce.

How IoT is Transforming Business?

The digital advancement has given businesses an opportunity to adopt IoT which increases their competitive advantage and enables them to provide a better customer experience. Nevertheless, IoT benefits can go deeper than revenue and profit growth. Here are some ways that IoT is transforming business and they hold common across all sectors:

  1. Asset Tracking and Inventory Management

With IoT, inventory tracking and management are made much easier and cost-effective. IoT applications can enable you to manage your inventory by granting some automatic control options. Similarly, tracking assets in the supply chain with IoT can be an ideal solution to catch the assets that went missing in transit.

Installing IoT products and software in your warehouses and storage units can aid you to manage inventory changes. Moreover, embedding CCTV cameras with IoT and analytics can prevent theft before it takes place.

  1. Data Sharing & Perception

IoT adoption has completely revolutionized how data is processed. Not only does it allow greater access to user data, but IoT applications can also track the patterns in which a user connects with the device hence the application learns from the patterns, becomes smarter, and offers a better user experience. Simultaneously, IoT products support businesses in interpreting that data to understand consumer requirements as well as strategies for marketing and advertising hence enabling company growth.

  1. Forming New Business Lines

Companies not only develop products but also monitor their product’s performance, all thanks to the predictive maintenance algorithm embedded in the IoT platform. The feasibility to transfer the IoT data across the organization’s ecosystem of customers and partners enables new paths of innovation in the form of continuous engagement and value-added services.

  1. Effective Market Strategizing

With the internet-connected devices, companies are obtaining an expanded view of their customers’ preferences, and therefore they can build campaigns that drive revenue from their audiences. Furthermore, it helps to segment the customer base, generate customized offers for boosting the customer satisfaction rate, and enhance their experience.

  1. Driving Real-Time Insights

Real-time data from processes, devices, and people via sensors is revolutionizing businesses; since visibility into what is really going on can be a game-changer. We are already observing innovation across the core sectors, especially in retail. By gaining real-time insights from buyers, retailers can stock products on-shelf and increase their profits with efficient sales and stock management.

Here are the business transformations companies can undergo to integrate the IoT with existing e-commerce platforms and create new business models and competitive advantage

  • Going Digital in all aspects of business

From small businesses to large, every business needs to undergo digital transformation to gain a competitive edge and to sustain itself in the long run. Digitalization aids in integrating technology in all aspects of business that helps improve productivity and deliver business value to customers.

Statistics show that the global spending on digital transformation is estimated to be 2.4 trillion USD. Simply put, every time you replace a physical process with a digital strategy, you engage in a digital transformation. When you decide to replace cash payments with cashless modes of payment, you become part of the digital transformation or eCommerce.

  • Strong Online presence for Brands

Brands need to have an online presence as it helps attract more customers and generates user engagements. Furthermore, the brand is capable of creating customer awareness and strengthening its credibility.

In today’s world, more than 90% of shoppers seek product information and helpful reviews online — even if their final purchase plan is through a retail store. Consumers expect to find a brand’s updated information, including contact information, seamlessly while approaching them. This strongly emphasizes the need for brands to “keep it fresh” and ensure a seamless shopping experience for users while enhancing customer relations.

  • Tools and Platforms for Digital Transformation in Ecommerce

There has been an upsurge in companies offering tools and platforms to support and drive digital commerce. Few of these are categorized as FinTech startups with a Software as a Service (SaaS) whose product offerings are imbibed with seamless integration of various payment methods for a consumer.

Smartphones are a great tool to help users buy anything now. From AR-supported software that emerged as game-changers to enable seamless buying of furniture and clothing online or to order your favorite Cappuccino from Starbucks, digital transformation has made lives easier.

The connected network demands companies to develop a completely new technology infrastructure. Harvard Business Review reports about a technology stack that involves multiple layers such as new product hardware, embedded software, connectivity, a product cloud consisting of software running on remote servers, a suite of security tools, a gateway for external information sources, and integration with enterprise business systems.

Article Sources

  1. https://store.hbr.org/product/the-internet-of-things-iot-shaping-the-future-of-e-commerce/HK1063
  2. https://internet-of-things.cioreview.com/cxoinsight/how-iot-technology-will-shape-the-future-of-ecommerce-supply-chains-nid-31193-cid-133.html

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