IoT set to transform e commerce

The Internet of Things (IoT) has been created by the proliferation of mobile devices, the increase in computing power as well as current data collection (Big Data) and processing techniques and it has become a useful tool in e-commerce.

IoT makes it easier to track stock levels with sensors that make real time inventory management possible, and helps streamline the movement of goods in a warehouse. As well as optimising inventory management and reducing shortages IoT also helps eliminate surplus stock. But most of all, it helps eliminate human error. IoT makes it possible to trace goods from the production stage to their delivery. Goods can be tracked during transportation using radio-frequency identification (RFID) and GPS and such systems can provide complete information not only about shipment locations but also about other factors such as temperature. Modern systems also allow both the speed and route of a delivery to be set remotely, making delivery times more predictable and preventing goods from being mislaid or damaged in transit.

IoT is allowing e-commerce retailers to manage their warehouses and inventory more efficiently, which gives them more time to focus on other aspects of their businesses. Data collected from machines and mobile devices can be used to match products to customers better.

IoT is also definitely going to shape how interactive websites are designed as they will be based on data collected from mobile devices . The real challenge for e-commerce will be how to analyse the growing amount of data (not just marketing data) that such devices will provide. The complexity of the data will require new tools for searching through and analysing it, which is a challenge for both researchers and businesses. And the amount of data will increase every year. According to the estimates of the International Data Corporation (IDC), global expenditure on the Internet of Things will come to USD 772.5 bln in 2018. The IDC predicts that between 2017 and 2021 global IoT expenditure will continue to increase with a compound annual growth rate of 14.4 pct to reach more than USD 1 tln in 2020 and USD 1.1 tn in 2021.