The Evolution of the Internet of Things (IOT) in the Retail Industry

The Internet of Things may sound like it comes from a science fiction novel, but it may be a growing reality in the world of retail.

Basically, the ‘Internet of Things’ is a system of objects that are connected by electronics, software and sensors in order to exchange information. In retail, it provides an efficient way of accessing useful information that can help retailers cut costs, and make the provision of goods to customers a much simpler process.

IoT is the creative combination of technology with the physical world, that provides shoppers with a shopping experience that is much less frustrating than the normal experience of standing in long queues waiting to be served.

Amazon Go is one of the leaders in the Internet of Things, setting the bar high for stores that seek to embrace the technology of the twenty-first century to create a better shopping experience for customers.

One of the innovative new concepts that makes this store different is that it uses an app to keep track of the items that consumers wish to purchase, and debits their account with the total amount by using payment and security technology that protects consumers’ information.

Want to know more? Read further to find out some of the other ways that IoT can make life easier for retailers and consumers alike.

Efficiency in the Supply Chain

Getting effective GPS systems installed can go a long way to help you reduce losses that might occur while your goods are in transit, or at any other point along the supply chain. It also helps you respond in real-time to crises that arise along the way, as it provides accurate, immediate information, such as the temperature of stock or the specific location of your goods.

Managing Checkout

Some customers abandon their trolleys at check-out to avoid long queues, which has a direct effect on sales; not ideal for any retailer. To prevent this from happening, you could consider redesigning your store or hiring more staff to minimize queue size.

Or, if you want to make use of the available cutting edge technology and choose an option that is, in the long run, possibly more beneficial than the options listed above, install an automated check-out system.

This would provide a way for tags on items to be read, and would ensure that the total cost is calculated before customers leave the shop.

Marketing Software

With IoT, you can install small Bluetooth devices in your shop, called ‘beacons’. Beacons detect customers who are nearby and send them information about current specials or in-store events. They also recognize where a customer is in the shop, identify their search history in their smartphones and send them information about the cost of items they have been looking up online.

IoT also provides an efficient system for loyalty programs. Due to the fact that it can track customers search histories, it’s able to refine the types of discounts each customer might be interested in.

Smart Shelves

Smart Shelves are equipped with weight sensors and scanners that help detect when stock is low. This can be useful in two ways. Firstly, theft can be more easily detected, thereby reducing loss as well as money spent on security.

Secondly, Smart Shelves can provide more accurate feedback than general workers can, and is also possibly cheaper than hiring staff to perform these task in the long term (after the initial installation fee). 

Other Software

In addition to the above, there are a few other IoT technologies that can improve the retail experience:

Aisle-analytics software can help provide up-to-date information on your best-sellers, which can help inform your store layout.

Certain systems can keep track of the flow of traffic in your store and adjust utilities accordingly, which helps to minimize expenditure on things like lighting.

Simple robots can perform the basic functions of particular staff members. For example, chatbots can receive and analyze questions from customers.

The initial Installation of IoT in your store may be expensive, but it might pay off in the long run in terms of the advantages it can provide in terms of customer experience, minimizing costs and maximizing efficiency.