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Internet of Things (IoT) – A Boon for the Ecommerce Industry
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As more and more users worldwide are migrating to online stores, the competition is rising at an unprecedented pace. Needless to say, Ecommerce store owners are trying their level best to beat the market competition. They are using advanced technology to attract and retain users.
Although when it comes to technology, there are a lot of options to choose from. But one of the paramount technologies that have made a major impact in the Ecommerce market is the Internet of Things (IoT) technology.
If we consider IoT for the Ecommerce industry as a whole it has done a tremendous job and is holding a silver lining for the future.
Let’s see how!
Market Overview of IoT Technology
According to a recent survey, the IoT market in the year 2022 was 483.28 billion USD. It is expected to grow at a CAGR of 29.4% (2022-2028) and reach 2,270.42 billion USD by the end of 2028.
Now you might ask, what is the reason for this huge growth?
Well, end-user industries are one of the reasons. Whether we talk about manufacturing, healthcare, or the automotive industry all these are driven by IoT.
As the traditional manufacturing sector is undergoing a revolutionary digital change, the IoT is fueling intelligence connectivity for a seamless workflow. Apart from this, the rapid growth of Ecommerce platforms due to the ease of smartphones and shopping from the comfort of home has propelled the IoT market growth.
Moreover, the integration of the 5G network is further going to enable seamless and reliable connections of IoT devices around the world.
Top 5 Benefits of IoT in Ecommerce
- Rich User Experience
Many companies are using IoT to gather insights on items that are increasingly becoming popular on social media and other public platforms. It is one of the practical techniques of tailored marketing, thus helping Ecommerce business owners to target a potential market.
Apart from this, IoT allows retailers to target users worldwide on the basis of customization and personalization. Whether it’s about depicting shopping patterns or the likings of an individual user, IoT can help a lot to predict this without any extra effort.
Moreover, when you target your users based on their interests the chances of sales on the spot increase a lot. This not only increases sales but also adds value to the brand. This way you can build more trust among your users.
- Automated Inventory Management
Inventory management is something that demands a lot of accuracy and manpower. But IoT sensors and Radio Frequency Identification tags (RFID) have revolutionized inventory management by allowing learning of essential product information like its availability, type, expiration date, and much more without human involvement. As a result business owners can easily monitor both the quality and quantity of products.
Moreover, smart shelves can easily inspect the number of items and place an order for new batches to maintain the flow of inventory.
- 24*7 Supply Chain Management
When it comes to supply chain management even a minor human error can result in major financial loss. This is where IoT can prove to be a handful. IoT devices ensure detailed and accurate tracking of items throughout their journey. The IoT sensors and tags ensure you are updated about an item from location to condition. It makes sure the delivery and shipping process doesn’t encounter any issues and the product reaches the customer.
It also provides accurate information on arrival time and prevents wrong deliveries. Apart from this, customers can easily track the location of their product throughout its journey.
- Ease in Warranty & Maintenance
Before the introduction of IoT, customers have to rely on their mental presence to look for any minor fault that can cause a breakdown at later stages. Apart from this, they were required to keep track of the product’s warranty and all. But after the introduction of IoT, things have changed a lot. IoT technology is serving as a tool for a remote assistant of products, examining their performance on a regular basis and forecasting their maintenance.
They are also assisting businesses with data regarding product adoption and breakdown. Moreover, the IoT sensors alert the company regarding the poor operation of a product. It initiates a call and notifies the customers about the same thus volunteering to replace or repair the product at the earliest possible level in order to prevent further damage. IoT also assists a user with notifications in case the product is lost or stolen.
- Extensive Income Potential
IoT has helped companies in shortening their time to market, provided good ROI, created compelling use cases, offered new business models & easy solutions, makes the prediction of online shopping trends much easier, and has done much more.
It has revolutionized the way businesses used to communicate with their users earlier. IoT has not only enhanced customer experience by offering them more customization but has also helped businesses to target audiences on the basis of their interest. This way it has contributed a lot to maximizing sales and increasing the brand value.
Also Read: Cloud Computing in E-commerce – A Promising Future or Hype?
Biggest Brands That Are Using IoT in Ecommerce
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Walmart
According to the report, Walmart is successfully managing about 7 million unique IoT data points across US stores. It means connecting devices are sending about 1.5 billion messages related to temperature, operation functions, energy uses, etc on a daily basis. IoT is working as a backbone for Walmart.
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Amazon
Amazon is one of the major players in the IoT market with a number of IoT developers by its side. It uses internet-connected robots in its warehouses for stacking shelves and retrieving items ordered by customers. Amazon also uses the Amazon Go system that helps people bypass checkouts by automatically billing their phone accounts.
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Rolls-Royce
Rolls-Royce has not only established its identity in the luxury segment but has performed exceptionally well in the power segment by producing powerful airplane and ship engines. It uses IoT and big data analytics on a large scale to make its products more maintenance-friendly.
Rolls-Royce follows the policy of predictive maintenance that allows their customers to save millions of dollars by warning them in advance about the risk of mechanical failures in the engines.
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Microsoft
Microsoft uses IoT devices on a mass level for monitoring and managing the shipping and delivery of their Surface, Xbox, and other related products. The IoT technology helps them to check the merchandise on a regular basis by tracking the changes occurring in ambient conditions of shipments, including shock, light, and temperature. Thus they are able to prevent any damage and delays without putting in any extra effort or manpower at work.
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Cisco
The Cisco smart grid technology used for utility services and energy control uses IoT on a large scale. Apart from this, their infrastructure monitors and aggregates data related to energy usage & distribution, app management, wireless networks, and cybersecurity using IoT technology.
How Can Apptunix Help You Ease Your Business Operations Through IoT?
Apptunix is a seasoned development company with extensive experience in IoT-based-e-commerce apps. Whether you are looking forward to user engagement, brand value, or high ROI, Apptunix has a dedicated team of Ecommerce app developers that can help you make an entry into the global business community.
Apart from this, timely deliveries, complete transparency, fully customized & scalable solutions, quality apps, and much more are what Apptunix is known for in the app development market.
Frequently Asked Questions(FAQs)
Q 1.How is IoT Beneficial for Ecommerce?
IoT eliminates human error, reduces the cost of operation, provides precise analytics, and assists in decision-making. It not only helps to build a solid customer base but also aids in retaining them by offering a rich user experience.
Q 2.What is the Minimum Cost to Develop an IoT-based Ecommerce App?
The minimum cost to develop an IoT-based Ecommerce app is around 20,000 USD – 25,000 USD. Rest it all depends on the specific business requirements. For more detail, schedule a free call.
Q 3.How Much Time Does It Take to Develop an Ecommerce App?
The MVP of an Ecommerce app can take anywhere from 3-4 months. Rest it all depends upon customization as per your specific business needs.
Q 4.What is the Benefit of IoT Technology in Retail Business?
IoT technology offers valuable information to retailers that can help them with high ROI. It helps to establish a strong bond with customers that helps a brand to improve brand value.
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With about 7 years of experience (Technical & SEO Writing) and a solid technical background (Master of Technology – E.C.E with Wireless Communication as specialization), he has worked both as a freelancer and on a regular basis for prestigious IT organizations across the globe. Whether it’s Blockchain, Metaverse, Artificial Intelligence (AI) & Neural Networks, Machine Learning (ML), Internet of Things (IoT), Cyber Security, Cloud Computing, 5G Technology, or some other trending technologies he has written whitepapers, eGuides, blogs, technical documentation, guest posts, and so on for almost all. Here at Apptunix, he is generating B2B content.
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