3 Ways IoT is reshaping the eCommerce Industry

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The usage of the Internet of Things in the retail sector is becoming more common as a result of the technology's limitless potential and advantages for firms in this area. The Internet of Things is an effective tool that enables merchants to analyze the behavior of customers, develop new business models, and increase efficiency. We've put up a quick introduction to IoT use cases in retail and e-Commerce to show how linked devices may improve business.

How IoT transforms the Commerce

Over the last decade, there has been a noticeable transition from on-site trade to internet trading. The two primary drivers of this shift are the development of intelligent technology and the rising customer desire for easy and rapid shopping. Together with Machine Learning, Artificial Intelligence, blockchain, and Big Data, the Internet of Things is the key technology driving the remaking of business by Selldone, the best free eCommerce platform. According to GVR, worldwide investment in IoT in retail would reach $94.44 billion by 2025, representing a 21.5 percent CAGR.

Statista's graphic below illustrates the most common types of IoT devices and the projected development of their utilization in the US retail industry.


 Source: Statista

As you can see, more merchants will utilize RFID tags and IoT sensors, while manufacturers of new beacon technologies will strive to carve out a market niche.

Practical Internet of Things Applications in Retail and E-Commerce


At first look, it is difficult to conceive how IoT may be used in retail stores or e-Commerce operations other than for transportation tracking. However, in the commerce industry, there are several practical uses of linked devices coupled with other intelligent technologies. We can categorize IoT use cases in retail into three groups based on where these solutions are deployed: trucks, warehouses, and shops.

1. IoT in Vehicles

Because all trade firms rely on the delivery of products, effective logistics is critical to success. Increasingly businesses are outfitting their freight cars with IoT-connected sensors, GPS trackers, or RFID (Radio Frequency Identification) tags to monitor and retrieve vital data in real-time. IoT devices provide continuous tracking of items traveling from suppliers to warehouses or from warehouses to end-users, resulting in a variety of advantages.

Supply chain management is seamless. The ability to regulate goods movement in real-time allows merchants to maintain their supplies balanced and plan purchases more successfully.

Logistical intelligence. Merchants may plan the most effective routes to deliver orders on time by using internet information on the location and speed of vehicles and weather and traffic conditions.

Preventing products from spoiling, being lost, or being damaged. IoT sensors can monitor the conditions under which items are delivered (temperature, humidity, pressure, and so on) and warn drivers or management if they deviate from the standard. As a result, they promote ideal conditions throughout the voyage, allowing drivers to intervene to prevent products from rotting or being damaged. This feature is very useful for food transportation.

Customer satisfaction has increased. Connected gadgets that collect information about their order status and communicate it to them via mobile applications or automatic notifications help e-commerce consumers. Therefore, customers will know what time the item will arrive at their door and will not have to worry about missing the delivery.

Delivery vehicles that drive themselves. While self-driving cars are not yet capable of traversing city streets on their own, slow-speed self-driving delivery vans are becoming a reality.

The Internet of Things is being utilized to develop gadgets that can replace couriers and deliver items from e-Commerce businesses to customers' homes.

Thus, they ensure contactless delivery that is highly important in terms of pandemics. As a result, they provide contactless delivery, which is critical in the case of pandemics.

2. IoT in Warehouses

Inventory management in warehouses with thousands of goods and hundreds of product categories is a complex undertaking. IoT-connected sensors and devices automate various operations in such warehouses, allowing for intelligent inventory management with minimum human intervention.

Inventory management that is intelligent. The installation of IoT sensors and RFID tags in warehouses changes the way inventory is organized.



  • Devices automatically control things entering and exiting the warehouse, classifying them as needed (product type, color, size, expiration date).
  • The sensors aid in the automation of the acceptance process and the allocation and transportation of items in a warehouse by showing empty shelves.
  • The availability of products in stock is updated in real-time; sensors gather data and communicate it to the ERP system, allowing business leaders to quickly monitor amounts and consumers to order only things that are in stock.
  • IoT sensors monitor environmental variables such as temperature for perishable products or vibration levels for fragile objects and give fast notifications if necessary, preventing spoiling or damage
  • Smart shelves are a wonderful IoT invention for the retail business that seeks to minimize product shortages or overstocking. Special sensors monitor the number of items on the shelf, evaluate sales data, and arrange automatic orders as necessary – all without the need for human intervention.

Predictive warehouse maintenance. IoT applications in retail warehouses are not restricted to product monitoring. Smart sensors can also monitor the condition of equipment like forklifts, allowing for predictive maintenance and minimizing or eliminating downtime.

Warehouse automation. The Internet of Things technology serves as the foundation for warehouse robots that operate alongside humans. They are capable of choosing, packing, transporting, storing, and other activities.

Benefits of IoT solutions in warehouses:

  • Controlling inventories in real-time.
  • Human mistakes have been reduced.
  • Inventory management has become more efficient.
  • Cost savings.
  • Correct analysis.
  • Customer gratification.

3-IoT in Stores

To stay up with the competition, many brick-and-mortar shops are adopting digital transformation plans. They may profit from retail IoT solutions in addition to incorporating retail software solutions into their processes.

Recognizing consumer behavior. Personal consumer data, as well as data on customer activity in stores, are invaluable. Therefore businesses must understand how to acquire and use such information.

Customers' motions through a business are determined using IoT-enabled motion sensors put in shopping trolleys or baskets, such as: which aisles they walk down and which ones they avoid; which shelves they stop near and how long they gaze at the merchandise for; and whether or not they pay attention to specific deals.

All sensors send data to the centralized cloud system for analysis through Bluetooth or other IoT connectivity methods. Marketers may determine the shop areas with the most and least visitors this way. Based on this information, they may develop more effective merchandising methods and optimize the store's physical structure.

Collection of personal information. Digital advertising screens, often known as digital signage, may be seen in many stores and public areas. Aside from advertising items or services, the most important role of these IoT systems is to collect consumer data. With access to such customer-centric data, digital marketers may dramatically enhance their marketing tactics and generate more enticing offers for their clients.

Shopping process automation. In supermarkets, IoT is also represented through automated checkouts in Selldone free ecommerce builder platform and interactive kiosks, which allow customers to complete their purchases without the aid of a cashier. Amazon's new "grab and go" concept demonstrates how far technology has progressed. There are no queues and no checkouts at the Amazon Go grocery chain. People take products, and payments are automatically handled with the aid of sensors, cameras, and smart weighing equipment that integrate with cellphones.

Beneficial Merging of Retail and IT

Installing IoT sensors in retail transportation fleets and using connected solutions in shops and warehouses help retailers achieve a competitive advantage. Increased visibility and flexibility of all operations, data-driven decision making, improved services, and happier customers are among the benefits.

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