Online shopping has taken the world by storm. From fresh produce to technological appliances, almost anything and everything can now be ordered with the click of a button. But what happens when you don’t even need to click the button?
Smart shopping via the Internet of Things (IoT) is becoming an increasingly viable option. Many consumers in the UK are ready for a new era of smart shopping, in which items will be reordered as they run low by devices connected via the Internet of Things.
WHAT IS ‘PROGRAMMATIC COMMERCE’?
The concept of programmatic commerce involves businesses and consumers allowing purchasing decisions to be made for them. This is done automatically via different connected devices and the IoT. The devices can be programmed to detect dwindling supplies, so that consumers and appliances do not run out of what they need.
For example, a coffee machine may detect that its supplies are running low and consequently send an order to a supplier for more, all without any human input. This way, you do not run out of coffee beans without realizing it. Programmatic Commerce supports a more seamless process and way of life.
Such automated technology stands to greatly improve supply chain management by reducing the risk of human error and providing quick, concise orders for suppliers to fulfil.
ADVANTAGES OF SMART SHOPPING
There are numerous advantages to smart shopping with the IoT. A study was conducted in the wake of the launch of Apple’s Dash service, which allows us to understand some of the pivotal trends.
Approximately half of the British population would use smart shopping to buy food and drinks, while the same proportion would replenish household supplies.
37% of people surveyed believed that utilising smart shopping would save them time, while the same percentage of people felt that it would save them money.
25% of people added convenience to the list of advantages. Not having to create shopping lists, forget needs, and find that stores are out of stock, is an exciting prospect for many.
DISADVANTAGES OF SMART SHOPPING
Unfortunately, the opinions expressed on smart shopping in the aforementioned survey were not universally positive. 54% cited a lack of control over purchases as a cause for concern, while security was mentioned by 51%.
Meanwhile, half of those surveyed said that cost was an important consideration to them as the new era of smart shopping loomed, compared to the 25% that prioritised brand. So consumers still have their doubts and some aspects of smart shopping still need to be ironed out.
An exciting future for programmatic commerce
Neil Stewart, Salmon CEO, commented:
“While we expected consumers to already appreciate the benefits of digital, we have been pleasantly surprised by how ready they are for automated shopping. Our research paints a picture of a sophisticated and engaged consumer, ready to take advantage of the impact of smart technology in their digital shopping.”
Here at Bis Henderson Consulting, it certainly interests us to contemplate the predicted rise in automated ordering through connected devices in the home, and what this may mean for the volume of home shopping orders, the number of SKUs per order and order values.
The future of programmatic commerce looks bright, particularly given the potential that it has to improve the flow of supply chain management and negate manual resupply orders completely to the benefit of both the retail sector and household consumers.
Perhaps, in a few years, consumers will be 100% ready for this advance in shopping and supply.
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