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The Importance of Integrating RFID Into Ecommerce Business Strategies

Whether startups or SMEs, companies should consider integrating the technology into their strategy for success.
By Luke Hatkinson-Kent
May 23, 2018

The retail industry began testing RFID technology in supply chains and strategies more than a decade ago. Since then, the ecommerce and online retail sectors have experienced massive growth, and have begun to implement similar RFID strategies in their operations and supply chains as well.

Ecommerce giant Amazon has invested in Auburn University's RFID Lab to design and deploy such technology for its Prime Now delivery service, for example. There are many benefits and reasons for the uptake in RFID appearing in more ecommerce strategies.

Impact on the Supply Chain
Supply chains are the main way in which RFID technology is being used by many ecommerce companies in their overall business strategies. From the original source to the final delivery to a customer, taking in traveling to and from distribution centres, packaging and anywhere else in between, this allows for accurate tracking of all parts and products.

For an ecommerce business, RFID tags can help to create a smoother and more efficient supply chain. One of the main reasons these can break down is when there is a delay at a certain station, which has a knock-on effect and slows down the whole process, leading to greater costs and unhappy customers. RFID technology can inform each station in the chain about an item's location and condition, so that schedules can be adjusted accordingly.

The supply chain needs to be at its most efficient, especially for international deliveries and reaching globalization aims. Whether it's established or emerging markets, as defined by RSM, the use of RFID technology within strategies can help to metaphorically build such bridges.

Delivery Processes
Transparency is a highly valued asset by many consumers these days. When ecommerce customers reach the checkout counter, a big turn-off can be a lack of delivery options, with more and more expecting everything from next-day to time-specific and tracked delivery. That's why, as part of any ecommerce strategy, it's important to expand delivery options so that tracked delivery is an option for consumers. Plus, this will help you to stay ahead of, or at least compete with, competitors.

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