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If you are someone who runs or a part of an e-commerce business, imagine this scenario:

One of your customers orders something from your online store.

After the order is placed, you discover that the item purchased is out of stock. How embarrassing would it feel to admit this goof-up? And what impression of your company will that customer have?

Do you think that customer would ever recommend your platform to friends or buy from you again?

You wouldn’t just lose one customer; you would lose several potential customers as well.

You will not only lose people in the customer’s close circle but also countless others if there are many such instances and there are several negative reviews for your platform.

Today, there’s a fierce competition in the e-commerce sector and it’s the need of the hour to have technology such as RFID at the backbone of an e-commerce business. Not only will it enable you to cut through competition but also create new business opportunities.

What is RFID technology?

RFID technology offers automatic identification and tracking of objects or entities by making use of radio-frequency waves. Broadly, RFID technology can be of two types: Active and Passive.

The main difference in active and passive RFID technology is that ‘active’ tags use a battery power source to broadcast their signal automatically, and a ‘passive’ RFID tag does not have any power source.  Passive tags only transmit RFID signals when receiving a radio frequency energy from an RFID reader that is within range. Passive tags have proven to work best for e-commerce businesses, among others.

Radio Frequency Identification, or RFID systems comprise tags and a scanner that can ‘read’ them. Tags are installed on your inventory while the scanner, or reader can either be handheld (mobile) or fixed. Tags can be unique, helping you track each item separately. RFID readers can scan tags even when they are not in direct line of sight, thereby making RFID technology surprisingly quick.

How RFID is a gamechanger for e-commerce platforms?

Using RFID has a huge impact on several aspects of your business and the entire supply chain life cycle. Since we have discussed the benefits of using RFID in our earlier blogs, let’s focus on how RFID plays a role in achieving customer satisfaction, one of the key metrics for a successful e-commerce business.

While it varies from business to business, the top 5 of the most important KPIs for an e-commerce business are:

  1. Conversion Rate
  2. Customer Lifetime Value
  3. Customer Retention Rate
  4. Annual Repurchase Rate
  5. Average Order Value

As is clear from the KPIs, success of an e-commerce business majorly depends on customer satisfaction, which means if you can achieve customer satisfaction, your KPIs will automatically be met.

Let’s have a look at how implementing RFID technology helps you achieve customer satisfaction and quick cycle count.

Accurate stock information 

Using RFID technology, you can have real-time information of your inventory at all times. This means the availability status of your products as seen by your customers will always be accurate. With RFID, you are completely destroying the chances of a scenario occurring where your customer sees a particular item is in stock while it’s not. It also enables quick cycle counts and helps with workflow automation. Studies have shown that with RFID, retailers can automate their inventory data and improve accuracy by 30%.

Quick dispatches

Since RFID enables you to track your inventory in real-time, it enables you to better manage your inventory and automate your workflow. This especially helps during dispatches, which becomes efficient and thereby takes only a fraction of time as compared to traditional methods. Since RFID enables you to track your inventory in real-time, occurrences such as theft or loss of inventory are quickly brought to your notice. In case some of your inventory is missing, you can easily locate it with the help of RFID.

Never run out of popular items

In a traditional e-commerce setup, it takes a while to know when a certain item is out of stock. However, with RFID, you will be able to know when you are about to run out of a certain item. Studies have shown that with RFID, you can reduce and replenish stocks in time to avoid out-of-stock situations by 50%. This will enable you to ensure that the items your customers prefer are always in stock.

Adopting RFID technology

Implementing RFID in your business is quite simple, it essentially requires two hardware components: a printer to print RFID tags and RFID readers to read them and push the data to the application. The ROI is quick and what follows is profit – both for you and your customers.

If you are looking to invest in RFID technology, please feel free to reach out to us here.

At BCI, we have been offering business automation solutions to the global RFID market. Using a combination of hardware and software solutions, we have helped over 2,000 organizations across diverse industry verticals in automating their manufacturing operations, while generating ROI for one and all over the past 25+ years.

Our solution consulting approach includes thorough understanding of your existing processes and challenges and areas that need intervention, followed by design and deployment of a technology-based road map which is optimal for your business.

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