Can Amazon's IoT Push Change E-Tailing Landscape

by CXOtoday News Desk    Nov 02, 2015


Amazon has launched the beta version of AWS IoT, a platform for processing data from the Internet of Things appliances that is expected to become the dominant system for the IoT.

The Internet of Things (IoT) that has grown drastically in the last couple of years, and signifacantly helping people and industry to track, connect, update and share information can be a boon for e-commerce. By using IoT enabled devices and tools, e-commerce companies can not only manage their inventory management, logistics management and delivery tracking, but also strengthen their after sales efforts.

The IoT is a network of devices, including allowing devices to collect and exchange data. According to the research company IDC, the annual spending on IoT services will achieve $1.7 trillion in 2020, up from $656 billion in 2014. 

At the re:Invent conference in Las Vegas, company’s CTO Werner Vogels said that AWS IoT will integrate with Amazon Kinesis, Amazon DynamoDB, Amazon S3, Lambda and Amazon Machine Learning to develop IoT applications. Amazon Web Services cloud platform has turned into a profitable business in nearly a decade of its launch, bringing about $7.3 billion in revenues.

During the conference, Vogels also unveiled its first partners, including automobile manufacturer BMW, to show how the platform could be applied. The solution can help BMW to monitor the drives of its users and the security of their vehicles.

There is already a number of manufacturers that are working with Amazon on incorporating the technology into their products. For instance, Whirlpool is creating a washer which can directly buy detergent. Brita is developing a pitcher which can automatically purchase water filters, while Brother is developing a printer with an option if ordering ink.

Last year, Amazon presented Echo, a $180-priced smart voice device that reports the news, sets alarms, plays music and makes lists. Besides, it can also be utilized for ordering products from Amazon. Experts believe, with Amazon’s expansion to the IoT market, the company could significantly change the way we interact with our connected homes and how we make purchases.

India’s e-commerce giant Flipkart was also chalking out plans to deliver packages to its cutomers in India by using drones especially in the rural areas. The challenge is that civilian drones are not allowed in India but the Bangalore-based company is expecting to convince the government because it helps remote parts of the country.

“IoT offers greater automation of the delivery process and as such simplifies the management of logistics, which in turn streamlines customized delivery management,” says IT analyst Gaurav Kumar.

Tracking the various warranty periods on all the different products is laborious. With IoT updating the information (purchase date and warranty period), companies can setup system notifications and automate the sending of warranty extension offers. These in turn can help in increasing customer satisfaction, brand loyalty, and increasing revenues through after sales services.

The IoT is already creating an environment that will benefit etailers in becoming more efficient. As an e-commerce vendor in an industry, an IoT push can give companies like Amazon a competitive edge.