The IoT (internet of things) refers to multiple physical devices that communicate with each other using the internet without any human intervention. This technology has already created a buzz in the market. But do you know how this technology is empowering the e-commerce business? Lets have a look how IoT is impacting the e-commerce industry with the help of this blog.

1. How is the Internet of Things (IoT)
Affecting E-commerce?
The development of mobile and the internet has become so enthralling that
people adopted this integration for enjoying services like online shopping
and online transactions, which resulted in the augmentation of the growth
of e-commerce industries. We really need to thank the technology used
behind the e-commerce business i.e., the Internet of Things (or IoT), which
allowed retailers to sell their products around the globe.
Additionally, this technology has made both shopping and payments so
easy and hassle-free that it enhanced the number of online customers.
According to tech giants, the internet of things is among the top six tech
trends of 2020.
Impact of IoT on E-commerce Business

2. The term IoT was coined by a UK based entrepreneur Kevin Ashton. In
simple words, the internet of things refers to multiple physical devices that
communicate with each other using the internet without any human
intervention. This technology has already created a buzz in the market. But
do you know how this technology is empowering the e-commerce
business? Let’s have a look at how IoT is impacting the e-commerce
industry.
Smooth Supply Chain Management
The supply chain is one of the biggest concerned areas of any e-commerce
business. If one part of the supply chain is faulty, it affects the operations in
other areas. Hence, the whole supply chain must work efficiently and
smoothly. This has now become possible through the internet of things.
The IoT ecosystem is capable of streamlining the process of the supply
chain. It can easily transport goods from one place to another and track
products from the manufacturing stage until the delivery to customers. To
trace items in transit, technologies like GPS and RFID help in providing
information like location, distance, etc. This ensures quick responsive
measures to deliver products within the specified time.
One can easily know the route and speed of the shipped product and
forecast its arrival time period. IoT uses sensors on the vehicle to do real-
time monitoring and prevent the shipped products from being misplaced or
lost.
Real-time Inventory Management

3.
Earlier inventory management was the most difficult task for e-commerce
stores. Keeping track of inventory in real-time has now become possible
due to the internet of things. IoT can manage stocks in real-time through
sensors and RFID. This eventually helps to streamline the entire inventory
management system. As the monitoring and tracking of various inventory
items improved, the errors in re-ordering items got reduced.
The system can automatically save information like product type, batch ID,
manufacturer’s name, etc. without any human intervention. Smart shelves
are used to overcome consumer dissatisfaction and complaints related to
out-of-stock products. IoT is not only capable of tracking the number of sold
products, but it can also place orders automatically.
Personalized Customer Experiences
IoT start-ups offer personalized services to their customers, which is the
key requirement of a successful business. IoT businesses recommend
products to customers based on their past purchases and online browsing.
The internet of things can greatly help in understanding customer behavior
and influencing their purchase decisions.
IoT systems enable retailers to gather information related to a consumer
(such as buying habits, location, and online behavior). If a retailer employs
IoT technology, he can gather a high amount of consumer data than its
competitors and, therefore, serve its customers in a more personalized
manner.

4.
Based on the shopping patterns of an individual, retailers can create
bespoke marketing campaigns. Thus, IoT services can efficiently cater to
the needs of each customer.
Automated Purchasing
IoT systems can automatically order products that a consumer would like to
buy. The consumer has to adjust the IoT system settings to enjoy the
automated purchasing service. If a consumer account is linked with an e-
commerce platform and if that platform is integrated with IoT, then the
consumer will be notified whenever any product is going to be out-of-stock
and the system can automatically buy the product for you.
Improve Revenue Opportunities
IoT assists companies to benefit from renewed business models and
solutions and thus, provides new business opportunities. This technology
aids in transforming how companies reach the global audience, thereby,
enhancing the consumer experience. Hence, blending e-commerce

5. platforms with IoT, entrepreneurs can seamlessly achieve their business
objectives and improve their business revenues.
Conclusion
E-commerce businesses such as Amazon, eBay, and Alibaba have already
started using the internet of things along with other advanced technologies
(like artificial intelligence, machine learning, and big data). IoT improves
many critical factors, for instance, quality management, planning, analysis,
and tracking that play a crucial role in organizational success.
IoT applications allow retailers to improve their customer relations, which
helps to enhance their image in the global market. Although IoT is
positively impacting the e-commerce industry, yet it depends on the
entrepreneur how to use this technology to attain the maximum benefits.
With the increasing penetration of IoT, the e-commerce market will
continue to grow in the coming years and tremendously impact retailers
and online consumers.