IoT in eCommerce: How to Develop an IoT-based eCommerce App?

Updated on Feb 6th, 2024

IoT-based ecommerce app

IoT has been there for a long time, completely changing how industries work. There are about 7.74 billion connected IoT devices today. The latest data indicates that the number of IoT devices is expected to reach 25.44 billion by 2030 due to the popularity of 5G and other technologies. Certainly, the trend indicates a positive paradigm shift in how businesses use these devices to drive organizational growth.  

They have better scope to boost operational efficiency and make data-driven strategies to attract and retain customers.  

The eCommerce industry is no exception. IoT changes eCommerce business models, turning them into a better future with real-time visibility, agility, and resilience. Stakeholders can dig deep into market insights and create more revenue-generating experiences for their customers. At the same time, they are helping the staff to capitalize on this investment to unleash their full potential. 

Let’s see how IoT profoundly impacts eCommerce businesses by revolutionizing all its areas. 

What are the Benefits of IoT in eCommerce? 


1. IoT for Real-time Supply Chain Visibility and Monitoring

A supply chain is one of the topmost priorities for eCommerce businesses. It bridges the gap between business and customers, making them fulfill the organization’s goal. The diverse supply chain network also requires constant monitoring and supply chain visibility. Not only does it help businesses stay updated on the current location of their fleet, but it also helps them address the demands of customers who need their order location in real-time.  

Sharing this detail with customers not only contributes to a positive experience but also helps build strong loyalty. Let’s get into the details of how IoT can be implemented in supply chain operations.

Real-time Monitoring of Diverse Supply Chain Network

IoT makes it easier for eCommerce businesses to track and monitor their supply chain network in real-time. This not just entails the location of the fleet but also the site of environmental parameters across the route, the condition of goods within the fleet, and more. Once managers have these details, they can make informed decisions about delivery status and logistics efficiency.

Predictive Analytics to Strategize Better for Demands and Supply

IoT helps businesses get future-ready. Every business needs a proactive approach to fulfilling customer supply against demands. The supply chain is also a part of the same. Predictive analytics allows companies to anticipate demand against supply and hence plan the logistics in the best way to fulfill it. Managers can plan proactively and detect anomalies such as weather changes, temperature, etc., to ensure the business is not disrupted.

Optimize Route for On-road Fleet

Imagine the fleet is operating smoothly until it gets stuck in a road jam for six hours. The consequences can be dire and even impact the delivery cycle. Shipments can be deployed, causing cancellations and even distrust from the buyers. IoT-based fleet management solutions work on devices across locations. They collect information in advance to help you change the route if needed.


2. IoT for Inventory Automation

ECommerce businesses plan to scale with time. When the business is small and in the initial phase, it is okay for the brands to work on small catalogs and excel sheets for inventory management. However, as your business grows, the traditional inventory management methods fail. To curb this, you need more advanced systems that help you track inventory in real-time, monitor sales and promotional campaigns, and more.  

Imagine one of the shoe ranges in your inventory is doing good currently, while another one is not. An IoT-based system can identify this trend and patterns to help you plan. Cloud based inventory management system can even make orders on your behalf to ensure supply can meet the demands.  

Let’s get into the details about what an IoT-enabled inventory management system can do for you.

Accurate Real-time Inventory Overview

An IoT-based inventory management system helps you comprehensively view your inventory round-the-clock. It automatically tracks supply against the demand and uses predictive analytics to compare purchase history to trigger re-purchase events.

Workflow Automation

Automation is one of the key aspects that has driven the attention of global enterprises. This trend is visible across industries, including eCommerce. IoT-based inventory management solutions help you reduce manual efforts on this front. For instance, there is a product that turns out of stock, and a customer places the order. While eCommerce stores can initiate a cancellation, it impacts the eCommerce business' reputation. An inventory management solution powered by IoT can help you transfer the order to another store location. It can also stop accepting orders until the product is in stock again.

Track Customer Behavior

IoT-based inventory management solution helps you deeply understand your customers. They allow you to know about the products trending among the customers and analyze what they are looking for on a competitor’s websites. Knowing what customers want helps marketing teams strategize and attract customers with targeted ads. They can also tailor the ad copies to entire the customers better. For instance, if a product can benefit both Gen Z customers and older generations, a different copy would help get into the mindset of both categories of customers.

3. Offer Personalized Shopping Experience to Customers

Personalization is a major selling factor for global organizations, no matter which industry they fall into. It helps them strike chords with the target audience, improve sales, boost revenue, and improve customer retention. Surveys have proven that: 

  • 80% of the buyers prefer to buy from brands that deliver personalized experiences. 
  • Target marketing delivers 38% growth in product revenue 
  • The personalized shopping experience influences 92% of the customers 

IoT devices garner data from multiple devices about customers’ viewing history and spot the trends and patterns. This data can help you reach out to customers who have not even interacted with you in the past. You can introduce your business to them while showing them exactly what they need. This also helps eCommerce business to strategize for cross-selling and upselling campaigns.  

Also Read: IoT Consulting Services: Everything You Need to Know

How to Develop an IoT-based eCommerce App? 

Building an IoT-based eCommerce app begins with hiring an IoT development company. They have the best IoT development teams with the required industry understanding and the technology stack that gives you an edge. This is the IoT-based eCommerce app development process we follow: 


Step 1. Market Research and Discovery for eCommerce App Development 

Knowing where your market is positioned before putting your products among the target audience is right. Therefore, the first step is to get the lay of the land. Understand what your shoppers need and how your competitors are trying to fulfill those requirements. You need to address the pain points that your customers are trying to solve.  

Try answering the following questions: 

  • Who are your target customers? 
  • What are the buying trends among your customers? 
  • What are the challenges key stakeholders of your business face? They may include managers, business owners, employees, etc. 
  • What are the legal formalities you need to go through? 
  • Identify the budget and technology stack constraints. If you are initially low on the budget, you can always choose MVP development and iterate as you succeed.  

At Matellio, we have a team of dedicated business consultants who will help you harness the full potential of IoT-based eCommerce app by covering all these aspects.  

Step 2: IoT-based eCommerce App Design and Prototyping 

IoT-based eCommerce mobile app development begins once the blueprint phase is over. Hardware and software development teams help you build the solution based on the scope. The design mockups and working models help you understand what the end product will deliver.  

After the development team completes mockups, you can validate against your needs. Your feedback further enhances the quality of the final deliverables. Alternatively, you can build an MVP and let your users decide if the product solves the purpose. You can make changes without investing much if the feedback is not up to expectations.  

Step 3: eCommerce App Development, Testing, and Launch 

The feedback from the past steps is implemented in this one, and the eCommerce application is developed. Once the IoT development team is done, the QA team takes over and tests the entire system. A combination of manual and automation testing teams validates the products against the initial scope. After a complete cycle of testing, bug fixing, and re-testing, the product is ready for Launch.  


Want to Know How Much Does It Cost to Develop an IoT-based eCommerce App for Your Business? 

IoT has truly changed how eCommerce businesses carry out their operations. With its deep impact so visible, it is safe to say that IoT in eCommerce is here to stay and reimagine the buying journey of digital shoppers. ECommerce stores can channel their strategies and money to entire customers right from their first interaction with your website to the after-delivery experience. If you are wondering how much it costs to develop an IoT-based eCommerce app for your business, contact Matellio experts.  

Our experts will analyze the key factors that contribute to IoT-based eCommerce app development, such as: 

  • Features and functionalities 
  • Technology stack 
  • Complexities of the functionalities 
  • Expertise needed and experience of the IoT development teams hired 
  • The scale of eCommerce applications 

Once you know, you can decide between MVP and full-fledged IoT development. Our team will be right by your side from scope freezing to deployment. Let’s talk more. Book a FREE consultation with us right away. 

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