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How IoT play an Important role in E-commerce business?

With the usage of more sensors, actuators and microchips in place, IoT is quite expected to have a much larger impact on the entire e-commerce business.

How IoT play an Important role in E-commerce business?

Monday November 19, 2018,

5 min Read

E-commerce sector is witnessing unprecedented disruption at a technological level. With the ever-changing lifestyle of consumers and their growing adoption of online shopping, it has become quite crucial for the players in this particular industry to easily leverage the technology in order to offer services which can lead to customer delight. However, when it comes down to IoT or Internet of things, it has become the latest buzz in the market. IoT enabled devices actually exchange data with each other within an internet network that helps the retail as well as e-commerce businesses to easily carry on their various operations efficiently.

 The retail spend on the entire IoT has reached in billions. With the advent of these IoT devices such as smart mirrors which allow the customers to easily try the clothes virtually along with the technology to assist the users to re-order their desired products has completely changed the way, these customers shop online. Hence, IoT app development has gained tremendous traction over the years. Here, we explain how IoT plays a crucial and important role in the e-commerce business.

Management of Inventory

With the assistance of IoT, it has become quite easy to track the entire inventory. The IoT sensors, as well as RFID tags, allow the inventory management in real-time possible which streamlines the entire flow. They constantly improve both monitoring as well as tracking of various inventory items along with reducing human errors in reordering the different items. Information such as manufacturer’s name, product type, the expiry date of the items as well as their batch IDs can easily be automatically stored within the system without any sort of human intervention.

Smart shelves allow the reduction of customer dissatisfaction due to the inherent lack of stock products. They can easily track the total number of products which have been sold and also place automatic orders as the stock reaches the reorder level.


IoT helps in both optimizing the inventory as well as reducing the shortage along with eliminating over-stock of the products in the warehouses. With the temperature monitoring sensors, the company can check the optimum temperature for different perishable products and even send alerts whenever required. There can also be few sensors which examine the forklifts in any warehouse for the purpose of predictive maintenance in order to reduce the overall loss of productivity.

 Amazon is currently using warehouse robots in order to improve the effectiveness of its picking as well as the packaging process. These robots can move at quite high speed and even load hundreds of kilograms of parcels. Magento experts are working on inculcating this technology to e-commerce businesses for better product management.

Supply chain management

An efficient and uninterrupted supply chain management is quite crucial to carry on the various operation of e-commerce business with success. IoT allows that the products move from one particular place to another smoothly. It also enables tracking of various goods from the production stage to the final delivery. GPS and RFID technology assist in tracking the items in transit and even giving complete information regarding the temperature, location and much more.

 It also becomes quite possible in order to manage the route as well as the speed of the various shipped products as well as predicting the arrival time periods, and avoiding loss of shipments or misplacement. Sensors can easily be used in the different delivery trucks for real-time monitoring of the deliveries as well as decreasing the losses.

Improving Consumer Experience

IoT allows e-commerce businesses to easily differentiate themselves from their own competitors in front of their different clients. Some companies are using IoT in order to get insights about the various products which are quite popular on social media. This particular innovative technology easily allows the retailers to deliver a much more comprehensive shopping experience to their customers with a higher level of personalization that leads to the satisfaction of clients and their engagement.

IoT can easily help in personalized advertising and marketing for e-commerce businesses to easily target a particular group of customers. It can easily recognize the different shopping patterns on search trends as well as online browsing that enables the businesses to sell targeted products to their different customers easily. IoT will also allow tailoring the services, products and offers to the choice of the customers. With the availability of more data to marketers about consumer behaviour, it becomes quite possible to attract customers easily and even influence their own purchase decisions. Magento ecommerce development is including this approach to serve the customers better.

IoT also improves the overall customer service that helps in reporting issues even before they are actually noticed. This assists the businesses in anticipating various possible complaints that lead to prompt and easy resolution as well as a smoother and seamless customer experience.


With the usage of more sensors, actuators and microchips in place, IoT is quite expected to have a much larger impact on the entire e-commerce business. As more number of devices are getting connected as well as gaining smart features, more data will actually be gathered and improves the customer experience. With the increasing penetration of IoT, this industry will certainly see tremendous growth in the revenue along with better management of the inventory as well as easy tracking of thefts and even losses and increase the overall shopper intelligence.