The world is gearing up towards a connected ecosystem, and close to 25 Bn things will be connected by 2020. If we look at the retail industry, eCommerce accounts for around 5.9%, and the retail market is estimated to reach $28.3 Tn by 2018, which is currently at $22.5 Tn. While the past few years have been nothing short of a bumpy ride for the retail industry, the market share seems to be advancing in a positive way. With personalization and digital transformation, the retail industry is ready to embrace the next big leap.
Internet of Things is slowly emerging as a grand transformer of the retail industry. This emerging technology combined with Big Data and social media will disrupt the retail industry, and offer better value for consumers. You can already feel the change in the industry, and with time things will transform for the better. With eCommerce, the retail segment faced the first ever disruption, and IoT will redefine the way consumerism is taken care of by the retail industry.
Read on to know how IoT is already disrupting the retail industry
Personalization will help retail and eCommerce industry gear towards a consumer-centric approach. With IoT, the line of differentiation between eCommerce and retail will not exist. IoT will help in ensuring that the product catalog and arrangement on the website has been deemed as per the need of the customer in question.
With personalized recommendations, chances of conversions and improved in-store experience are higher. If the product in front of the consumer is relevant to them, then chances of it getting being purchased grows higher. To improve personalized consumer experience, mobiles, wearables and analytics would combine with eCommerce.
Personalization is the key to raking more profits from your eStore.
Better Inventory Management
In a connected ecosystem, the retail industry might flourish owing to well-integrated and streamlined processes and operations. Inventory storage and tracking is one of the biggest worries of the retail industry, as it directly impacts sales and customer satisfaction.
With the use of RFID tags and other relevant sensors, products can be tracked in real-time, and the inventory checked from time to time. In case, you are running low on inventory, you can always stock it up as needed.
Once you receive information on the stocks, you can place orders with the relevant vendors to replenish the stock. A lot of retail chains are already using IoT to improve their inventory management, and keep their stock updated.
With IoT, you can ring in efficiency into the supply chain, and make inventories leaner.
Warehouse and logistics is the backbone for retail and eCommerce business. At present, Amazon is investing 12% of their costs in ensuring smooth movement of logistics. It is time to make logistics management tough and intelligent, in order to improve profits and maximize the output.
For this reason, you will need to combine analytics with IoT, which will help you in predictive analysis, and give you an insight on the current trends. With RFID and Beacon you can gain visibility into logistics, and strategize management for efficient sorting, routing, locating and shipping of the goods from warehouses to the distribution centers.
IoT brings forth the connected ecosystem, which will help in improving efficiency within the enterprises, thus increasing conversion possibility, and improving the profitability. The idea is to make sales efficient. For this, the retail businesses are tracking the deliveries accurately, adjusting the speed and route as per the current need, and working in a data-driven environment.
IoT helps raise alerts in case the product gets damaged while being shipped, and helps in predictive maintenance. The idea is to make the delivery faster, and without any damage.
IoT in retail promises to give one of the best in-store experiences to the end consumer. The idea is to show them relevant products that they are interested in, from the past searches and past order history. Integrating with Beacons, analytics, mobile and social, IoT is indeed improving the capabilities of the eCommerce web solutions. The idea is to increase conversions, and work on improving profits.
Silver Touch has the capability of offering top-notch Retail IT solutions using emerging technologies and data-driven insights to improve your capabilities, and increase your outcome. Connect with us at email@example.com for more details.
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