As customers’ lifestyles continue to develop and become more adaptable, the emergence of IoT, or Internet of Things devices, brings with it a similar change in the eCommerce industry.
Similarly, the e-commerce business has exploded and grown due to the increasing rate of online shoppers. The digital world is, without a doubt, where the retail industry’s future lies.
The IoT is being used by an e-commerce development business that caters to online retail clients worldwide to improve customer experience. This simply proves that to remain competitive and successful, the e-commerce and retail industries must always stay on top of digital marketing industry trends.
What is the influence of popular IoT on e-commerce? Furthermore, how can e-commerce benefit from IoT? Here are a few of the most intriguing ways that the Internet of Things affects the e-commerce business.
What are these impacts, actually? Let’s find out.
1. Improved monitoring and logistics
Retailers may get better insight into the order fulfillment process thanks to the Internet of Things, allowing them to satisfy the needs of consumers who prefer to purchase online. In addition, retailers profit immensely from the IoT since it allows them to track orders from time to time.
Additionally, shops might maintain track of all inventories with management systems that find things automatically. Retailers may also benefit from cloud-based technologies like RFID (Radio Frequency Identification) and GPS, which provide data such as weather, traffic conditions, employee IDs, position, and more effective logistics management. It also automates shipping and delivery, preventing difficulties such as missing products.
2. Personalized data and decisions
The Internet of Things has also linked private information and brands together to provide more tailored experiences. Ecommerce enterprises may utilize customer connections to provide more tailored information and activities; While also combining data to further tailor the experience for households and individual members.
A connected automobile, for example, is a vehicle in which the driver receives offers that are tailored to them. A family with a smart refrigerator, on the other hand, receives personalized experiences based on their preferences. As marketers have access to more information and data on consumer behavior, they may be able to utilize it to appeal to customers and influence their purchasing decisions.
3. Enhances the bond between the producer and the customer
IoT aids in the establishment of a good relationship between the producer and the consumer via linked appliances, such as durable products, in which both parties enjoy a long-term connection. For example, printer makers may provide cartridge replacements directly from the printer. As a result, the brand remains in the thoughts of customers throughout the product’s lifespan.
Similarly, the IoT might help retailers generate money by creating new business models, such as selling continuous services like surveillance, predictive maintenance, and performance analytics for a specific product or set of items.
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4. Inventory control automation
Each eCommerce merchant wants to have more control over the products flowing in and out of their warehouse to detect whether items have run out of stock. In addition, business procedures and operations become easier with technologies like RFID tags and IoT sensors embedded in inventory systems, and merchants no longer need to engage store managers to physically inspect items since they can acquire actual information about their stock.
eCommerce might tremendously profit from the IoT since it can gather and send out fresh and relevant item data to ERP systems. Furthermore, it reduces human error in inventorying, ordering, and rearranging products. Retailers can not only track inventory using smart shelves and temperature sensors, but they can also monitor the appropriate temperatures for perishable items.
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5. Automation of the customer journey
Due to the Internet of Things, automated checkouts are now a real thing. Customers go in, make a purchase, and walk out with the fee billed to their smartphones as a result of the automated purchasing procedure.
Prediction systems are supposed to recognize when a consumer is ready to go shopping and pack things; they can easily pick them up based on the shopping list in the future. They merely have to pick up from the drive-through after sending specifics of the goods they wish to buy.
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6. IoT-focused e-commerce platforms
The popularity of online shopping has increased significantly, putting pressure on companies to provide a positive customer experience. In addition, with the IoT, retailers must figure out how to leverage data from various devices and sources; and be reactive not just to smart devices, but also to other connected things.
As a result, retailers might create responsive websites that use the IoT to improve the customer experience. Magento, for example, might be used to develop ultra-responsive ecommerce websites that integrate IoT to improve procedures.
The eCommerce business should keep in mind that IoT ecosystem is fundamentally about interconnected devices and things. As a result, IoT-enabled eCommerce is more evolutionary than revolutionary.
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Fintech Kennek raises $12.5M seed round to digitize lending
London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.
According to an Oct. 10 tech.eu report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.
The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:
“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”
The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:
“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”
The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.
The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.
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Fortune 500’s race for generative AI breakthroughs
As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.
Goldman Sachs’ Cautious Approach to Implementing Generative AI
In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.
According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.
One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.
To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.
Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.
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UK seizes web3 opportunity simplifying crypto regulations
As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.
Streamlining Cryptocurrency Regulations for Innovation
To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.
The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.
Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.
The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.
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