E-commerce businesses are one of the most trending business methods that most companies are developing. E-commerce generally enables popular businesses worldwide. The E-Commerce Market size is estimated at USD 8.80 trillion in 2024 and is expected to reach USD 18.81 trillion by 2029, growing at a CAGR of 15.80% during the forecast period (2024-2029). The global smartphone user population is increasing as the internet’s penetration increases.
E-commerce businesses have many benefits, such as global reach, which enables them to sell goods and services to clients anywhere in the globe, and 24/7 availability, which improves customer comfort. With the benefits, e-commerce businesses can have various challenges too such as problems in traceability, real-time data unavailability, mishandling of products, availability of inventory information, inventory management issues, etc. These problems can be cured with any specific tool or technology.
Overview
Traceability can be the technology or tool that has the potential to track and trace for gaining real-time visibility in inventory with the help of RFID tags, IoT sensors, etc. Traceability solutions also have a well-managed global market size, as the Product Traceability Software Market is projected to grow at a compound annual growth rate (CAGR) of 7.88% from 2024 to 2031, transitioning from USD 8.5 billion in 2023 to USD 14.46 billion by 2031.
Key advantages of real-time inventory traceability for e-commerce companies include improved stock level accuracy, which lowers overselling and backorders and eventually increases customer satisfaction. Reducing holding costs and optimizing restocking, makes effective supply chain management possible. Businesses can increase their agility and responsiveness by using real-time data to make well-informed decisions and promptly adjust to changes in the market. Overall real-time inventory traceability in e-commerce businesses can advance the process of increasing visibility to enhance every aspect.
In this article, we will examine the role of real-time inventory traceability for e-commerce businesses. We will also discuss additional details such as benefits, challenges, etc., and conclude the topic.
What Is Real-Time Inventory Management?
Now that your company is established, you have the ideal products that your clients require. The amount and timing of the utilization of this stock are the next strategic considerations. If you run out of stock of your product due to a spike in demand, it could jeopardise your rapport with customers. You won’t ever have to worry about this issue because real-time inventory management will keep you informed about your stock levels.
As opposed to periodically updating the data, your system instantaneously logs each transaction when you use real-time inventory management. You’ll have precise knowledge in this manner, and you’ll know what actions to take to make your supply chain more effective. Moreover, real-time inventory data responds fast to any hiccups or unexpected modifications that can affect your operation.
Also Read: Traceability Solutions for Food and Beverage Packaging Industry
What is Real-Time Inventory Traceability for E-Commerce Businesses?
Real-time traceability generally refers to using cutting-edge technologies to track and trace a product’s location and status in real-time across the supply chain. Real-time inventory traceability means e-commerce businesses can manage and monitor inventory movements, locations, and levels in real-time across the supply chain. This system provides real-time information on stock availability using technologies including barcodes, RFID solutions, and cloud-based software.
Businesses can use it to find out exactly what products are available, when they are shipped or sold, and where their inventory is at any given time. There are many benefits that we will see in detail in the upcoming paragraph.
Related Blog: The Importance of Track and Trace in the Pharmaceutical Industry
Benefits of Real-Time Inventory Traceability for E-Commerce Businesses
There are a lot of benefits of real-time traceability for e-commerce businesses as here are a few key benefits mentioned below.
1. Improved Accuracy
With the manual recording of data about the inventory, this is not possible to get real-time information as it is possible to get past and recorded data. This cannot help too much to know the accurate details about the products remaining or going to end from the inventory. With traceability, it is possible to get accurate stock management results from real-time tracking, which lessens differences between recorded and actual inventory levels.
2. Enhances Customer Satisfaction
Customer satisfaction is also important while doing e-commerce business as customers should get the right information, accurate inventory data, and also get access to product traceability that overall increases their satisfaction towards the organization. With real-time traceability, e-commerce businesses can lower the likelihood of overselling and backorders by providing real-time information on product availability with correct inventory data.
3. Better Decision Making
Decision-making is also important when it comes to the inventory. There should be proper information about restocking, promotions, etc that enable us to make the right decision at the right time. With real-time traceability, businesses can lower the likelihood of overselling and backorders by providing real-time information on product availability with correct inventory data.
4. Reduced Costs
Having no proper information about inventory can cause extra expenses as excess inventory or stocks can result in degradation in product quality over time. With real-time inventory traceability, e-commerce businesses can enhance cash flow and reduce holding costs by reducing excess inventory and stockouts.
5. Fraud Prevention
There can be various frauds in inventory as many products can be theft or fraud, some internal persons or middlemen. This can result in a loss for the company and also a drop in reputation for the company. With real-time inventory traceability, by aiding in the identification and prevention of fraud or theft, real-time inventory monitoring helps safeguard company assets.
Related Blog: Track and Trace Solutions for the Food Industry
Challenges with Real-Time Inventory Traceability
We have seen a lot of benefits of real-time inventory traceability for e-commerce businesses but there could be some potential challenges too. Here are a few challenges mentioned below.
- The initial investment for implementation can be an issue as it can be too costly to bring in RFID barcodes, IoT sensors, etc.
- Overdependence on technology can be another issue because our reliance on technology, operations, and inventory tracking may be impacted by system failures or outages.
- Online transmission and storage of inventory data raises the possibility of data breaches and cyberattacks.
Also Read: Advantages of Track and Trace in the Logistics Industry
Final Thoughts
Real-time inventory tracking is essential for e-commerce companies looking to boost consumer satisfaction, operational efficiency, and competitiveness. Better decision-making, more efficient supply chain management, and lower expenses are made possible by providing precise and current information on stock levels and movements.
Some challenges can be overcome with the advancement in the technical world. With thoughtful planning and the right technology, e-commerce companies can leverage real-time inventory traceability to drive growth, adapt to market changes, and ultimately achieve greater profitability.
If you’re keen to delve deeper into the world of Track and Trace, reach out to Aeologic Technologies. We’re at the forefront of revolutionizing tomorrow’s production landscape.
