How Internet of Things Will Change eCommerce

How Internet of Things Will Change eCommerce
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With the rise in popularity of online shopping, eCommerce has experienced exponential growth over the last few years. If anything, eCommerce is set to become the future of retail as more businesses move to the digital space. Back in 2016, the global retail eCommerce sales averaged about $1.86 trillion, and research shows that the numbers are expected to rise to $4.48 trillion by 2021.

As such, the eCommerce sector is currently experiencing rapid technological disruptions. As time has gone by, the lifestyles of online consumers have changed significantly, forcing eCommerce development services to up their game. This has made it necessary for players in the industry to leverage the power of technology to offer world-class services that ensure client satisfaction. In this regard, the Internet of Things or IoT is the latest buzzword. For those who don’t know, IoT-enabled devices have the potential to exchange data with each other via the internet. This makes it possible for retail and eCommerce businesses to conduct their operations in a much more efficient manner. By the end of 2020, the retail spend on IoT is expected to reach around $2.5 billion.

As the popularity of IoT devices continues to rise, it is believed that the technology will completely transform eCommerce. One example of this is the Amazon dash buttons that helps users reorder the products they desire. With that, here is a look into a few ways IoT will influence eCommerce businesses:

Efficient warehousing

IoT has the potential to help eCommerce businesses eliminate overstocked items in their warehouses. Such businesses will also be able to benefit from advancements like temperature-monitoring sensors, which can keep an eye on warehouse temperature and maintain optimum levels for perishable items. Forklifts can also be monitored using IoT to predict maintenance, so that loss of productivity is minimized. Right now, giants like Amazon are using warehouses robots to ensure 100% efficiency of their picking and packing processes. This is something that all eCommerce businesses will be able to benefit from in the coming future.

Better inventory management

Keeping track of inventory will be considerably easier with the help of IoT. The utilization of RFID tags and IoT sensors will significantly impact the ability to manage inventory in real-time. Most importantly, eCommerce businesses will find it easier to store information like manufacturer’s name, product type, batch IDs and expiry dates of items automatically. This will reduce the need for human intervention, thereby doing away with any chances of human errors.

Apart from that, IoT can also assist with setting up smart shelves that can reduce customer dissatisfaction due to products being out of stock. IoT enabled devices can easily keep track of the number of products sold by the business, and can place orders automatically as soon as the reorder levels of the stock are hit.

Enhanced supply chain management

One of the most crucial elements of running a successful eCommerce business is ensuring efficient supply chain management. With IoT, businesses will be able to ensure that their products are transported from one point to the other in a safe and efficient manner. It can also allow businesses to track goods from the production stage to final delivery.

The utilization of GPS and RFID technology can assist in tracking items while in transit. This way, it will be easier for businesses to acquire details pertaining to temperature, location and much more. The adoption of IoT can also help businesses manage the route taken, and the speed at which products are shipped out. Apart from that, it will also enable them to predict the expected arrival time, while avoiding misplaced or lost shipments.

Better customer experience

IoT has the potential to identify shopping patterns in online browsing and search trends, enabling businesses to sell targeted products to their customers. Businesses can benefit from a high-degree of personalization, enhancing the levels of client engagement and satisfaction. Furthermore, it can additionally help with personalized advertising wherein a specific group of customers can easily be targeted.


All in all, it is safe to say that with the rise in popularity of online shopping, it is vital for eCommerce retailers and businesses to consider the adaptation of Internet of Things or IoT. As time goes by, these technologies will be adopted by just about every sector, and online shopping cannot lag behind. There are many online retailers, including giants like Amazon, that have already adopted IoT systems. If online sellers and retailers decide to adopt this technology, multiple vital aspects of their businesses, including supply chain management, inventory management are expected to improve. All in all, it would lead to higher rates of customer satisfaction, helping your online businesses continue to grow.


Shawn Mike has been in the field of blogging for the last five years. He provides ghostwriting, SMM and copywriting services. He occasionally writes articles for Dynamologic Solutions.

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