Since the British computer scientist Kevin Ashton coined the term “Internet of Things”(IoT) in 1999, connected devices have grown into a huge market. One study forecasts that the number of IoT devices worldwide will surpass 32 billion in 2030.
As this technology becomes more integrated with daily life, entrepreneurs are exploring how IoT can improve their companies, products, and services.
Learn more about the benefits of IoT devices and how ecommerce retailers can harness IoT technologies.
What is IoT?
The Internet of Things (IoT) is a network of electronics connected to each other and apps through the internet or an intranet. These intranet- and internet-connected devices can collect and exchange data through smart sensors, cloud computing, machine learning, and artificial intelligence.
IoT systems (like Siri and Amazon Alexa) can make consumers' lives easier by giving them the power to control smart devices in the physical world using IoT applications on mobile devices, voice-controlled speakers, or other tools.
An effective IoT system can use connected devices to automatically collect data or automate tasks to save people time. For example, a consumer can use an IoT application on their smartphone to program their lights to turn on just as they arrive home.
What are IoT devices?
IoT devices are physical devices that connect wirelessly to applications through an internet connection, cellular data usage, or technologies like Bluetooth. An IoT device uses software and hardware to communicate data to other smart devices and IoT applications.
Some IoT devices use artificial intelligence and machine learning to make informed, automatic decisions based on inputs from IoT sensors. For example, smart thermostats can take sensor data about temperature and weather patterns and use AI-powered processing to predict and adjust the temperature to optimize energy consumption.
Benefits of IoT devices for businesses
IoT devices can help businesses in several ways, including:
New revenue streams
IoT technology can open new revenue streams. For example, a personal care product company selling toothbrushes can create a smart toothbrush that uses IoT sensors to collect data about a user’s brushing habits or alert them when the head of the brush needs replacing.
More information
A reliable IoT device communicates real-time data with a user and provides merchants with up-to-date information about how their products are performing and what areas need improvement. For example, if users of a smart fridge don’t use the voice control feature, it could signal that the technology isn’t responding in the way that a customer might expect.
Companies can use this data to make upgrades, design new products, or tailor experiences to specific groups of consumers.
Efficiency
IoT devices can help businesses create more efficient systems. In a warehouse, for example, smart shelves can send an alert when inventory is running low to help you avoid stockouts. Or, if your company uses many IoT devices, you can use an IoT device management system to connect and manage them from one central location.
Examples of IoT devices
Here are a few examples of popular IoT devices:
Smart home devices
A growing number of internet-enabled devices help make home life more convenient. For example, smart lights with sensors can automatically turn on when someone enters a room and smart objects like loudspeakers can respond and react to user commands.
Security systems
Smart security systems leverage IoT technology to provide users with instant updates on their homes or offices. For example, a reliable security IoT device like a smart sensor or motion detector connected to an application on your phone can monitor your home when you’re away.
Other IoT security devices include smart locks, smart doorbells with live video streaming, and glass break sensors.
Smart cars
The automotive industry continues to incorporate IoT devices into new cars that can connect to the internet. These connected cars transmit a variety of data about your vehicle, including maintenance needs.
Wearables
Wearable IoT devices like watches use wireless connections to give users more information about themselves, like their resting heart rate, or help them change an area of their life.
For example, HabitAware’s smart bracelet notifies users about subconscious habits like nail biting.
How retailers can use IoT devices
Here are a few ways entrepreneurs can use IoT devices for their companies:
Product development
Retailers can explore how to improve or expand their offerings through IoT devices. For example, an ecommerce merchant selling shoes can develop a new product line of IoT running shoes that connect to an app on a user’s smartphone to provide them with real-time data about their activity.
Inventory management
IoT hardware sensors and software applications can make your inventory management and order fulfillment process more intuitive and efficient.
For example, smart shelves and sensors can track individual stock keeping units (SKUs)—codes used to identify and track products. With a software application on your phone, you can manage your inventory through remote monitoring.
IoT devices can also improve order delivery by tracking the fastest shipping routes and timeframes for your packages.
Customer experience
Merchants can also use data from their IoT products to improve the customer experience. IoT devices can collect and share data about customer behavior that businesses can use to identify and fix customer service issues.
For example, a company selling IoT washing machines can evaluate which parts of the product users prefer and dislike to design more useful features in the future.
IoT devices FAQ
What is an example of an IoT device?
An example of an IoT device is a smartwatch that can connect to an application on your phone to provide real-time data about health metrics like heart rate or sleeping patterns.
What does “IoT” stand for?
IoT stands for the “Internet of Things,” a term that refers to the network of interconnected electronic devices that can collect and share data with users and each other.
How do IoT devices work?
IoT devices monitor, store, and transmit data to users through the internet or other networks with technologies like smart sensors, software, cloud computing, and machine learning.
