Today IoT and E-commerce are marching in lockstep. The number of IoT is expected to reach a mark of 3 million connections by 2025. With that kind of shift, many retailers have to go digital and personalize their offerings to survive.
Iot Changes E-Commerce: 3 Main Reasons
The impact of IoT on the e-commerce industry is hard to underestimate. By 2022 alone, global e-commerce sales will reach $5.4 trillion.
Where there is big money, there is an investment in new technology.
The Internet of Things is not just about the connected home. Amazon, for instance, is already busy testing which concepts could be lucrative for the future, whether with its virtual assistance or Amazon Go.
As you might have known, Amazon moved away from the traditional processes of purchasing products. Payment is made automatically with the help of motion sensors, cameras, and smart scales. This is how the concept of full automation benefits e-commerce in 2021. And this is only a beginning. In any case, IoT slowly but surely occupying retail and e-commerce sectors in terms of purchase, billing, convenience, and all related services.
The Dawn of Traditional Cash Registers
As surveys show, the queue at the cash register is one of the most annoying factors for customers. Therefore, one of the trends gaining popularity in modern retail is the rejection of standard payment terminals. Sellers are trying to reduce the time a customer spends from the moment they choose a product to the moment they leave the store.
This is where compact POS systems come into play. They are beneficial both for customers and employees. They can use them not only to process transactions but also to check the stock of goods.
Self-pay cash desks also help reduce queues. IoT software implementation can also optimize payment for services in large spaces. For example, in Disneyland visitors use smart bracelets, which are both a key to the hotel and a pass to the attractions; payment for all services is linked to the personal account.
Modern technology is blurring the line between online shopping and shopping in a real store. Many networks on websites and mobile apps allow the customer to buy an item online and then pick it up from the outlet. Technology saves the time the customer will spend in the store without having to pay for shipping, as with a typical online purchase.
Chatbots for Best Personalized Experience
In the world of flourishing big data, AI is set in e-commerce to make better personalization and predict customer needs. That`s why chatbots are conquering the world.
Many brands are already using them to better communicate with their target audience. Artificial intelligence will continue to dominate e-commerce.
There are bots customized to place an order in an online store and find the nearest pickup point. But there are also complex systems that use artificial intelligence and predictive analytics to predict what product and at what price their interlocutor is ready to buy.
Such digital assistance like Siri, Alexa, Cortana, or Google’s Assistant have also increasingly entered our lives and shapes our buying decisions.
A report from Digital Transformation Institute shows that while music and information search remains the most popular uses of voice assistants, more than a third of respondents (35%) have also used it to shop for items such as groceries, home goods, and clothing.
71% of consumers are also very satisfied with the experience of using voice assistants.
The Future of E-Commerce
First of all, it means changes. With all the processes moving into digital, E-commerce has to keep up. It’s important to be more present in digital channels, and be aware of modern trends in both technology and marketing.
Customer demands and needs have already changed, thus, E-commerce should set new priorities and implement different strategies to meet them.
Brand development will be specifically managed by digital assistants and/or chatbots. Perhaps in a few years, email marketing will be replaced by voicemail, while technically wise, such devices like smartwatches or bracelets are no longer science fiction.
More and more people are leaning towards voice search purchases and mobile payment. Already today people can make payments using their cell phones.
For businesses, IoT offers more data about their customers and, as a result, a more personalized approach and better sales. Tracker technologies can determine customer age, gender, clothing style, and even mood to create a personalized marketing offer.
Based on the data collected, the system divides customers into specific groups and generates special offers.
The Rise of IoT?
Although there is still a long way to go in e-commerce, new technologies allow us to understand customer behavior and preferences, creating stronger relationships. They also facilitate adaptation and open up new perspectives.
It’s important to emphasize that the use of these tools helps generate more market space and innovation in terms of purchasing methods, product display methods, and compelling marketing campaigns.