Benefits of RFID technology
The Internet of Things (IoT) is seeing an increase in the application of RFID technology.
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According to one survey, 52% of businesses are spending more on sensors and automated identification. Within the following two years, another 27% intend to use the technology. Let’s examine the reasons why.
Enhanced inventory control
Retail businesses may increase inventory accuracy and stock reliability with RFID, which boosts sales and increases customer happiness. Additionally, it offers precise and up-to-date data on stock specifics, including number, models, color, and size, as well as inventory levels.
RFID tags allow you to trace every item in your business, which eliminates stocking problems and boosts security.
Using an RFID reader to scan items also reduces the amount of time spent on inventory, which boosts output and requires less manual labor from staff members. Employees are able to focus more on clients and sales as a result, rather than counting inventory. One person can quickly scan a number of products with a portable scanner, making stock takes more frequent and efficient.
Enhanced loss avoidance
The modern economy is placing strain on retail establishments. Pricing is more competitive, cost is growing, and supply chain disruptions occur more frequently than in e-commerce. Retailers must also lessen staff fraud and shoplifting, which together account for $94.5 billion in losses in US retailers alone.
Retailers are using RFID technology to combat security issues by reducing theft and administrative mistake.
To find out if more merchandise left the shop than was sold within a certain time frame, you may combine asset monitoring data with sales and video data.
With RFID, you can view the products that were taken, the moment they were taken, and even a video of the shoplifter. This aids in seeing patterns in shoplifting and assembling evidence to provide the police with a culprit.
Quick checkout
An increasing number of merchants are searching for methods to inflict disruption on one of the least enjoyed aspects of the shopping experience: the checkout process.
Some analysts believe that future stores won’t have checkouts at all as they are a big source of friction for both merchants and customers.
Because of this, the first Amazon Go shop opened to tremendous excitement in the retail sector. Customers may just grab products off the shelf and leave.
Every customer receives a digital receipt for their purchase and an automated payment to their Amazon account from the retailer. According to Forbes, Amazon’s “Just Walk Out” technology will be the biggest advancement in retail over the next 30 years.
An crucial turning point for RFID technology has been reached with this application case. An increasing number of merchants are searching for methods to enhance the checkout process and exert greater authority over the shopping encounter.
A higher level of buy online, pickup in-store (BOPIS) efficiency
Every shop should provide the consumer service of “buy online, pickup in-store.” It’s a fantastic method to close the gap between online and in-store purchasing experiences and boost in-store traffic.
According to a poll conducted in 2021, 56% of consumers reported utilizing click-and-collect services six or more times in the previous year, with over 8% of those respondents using it more than 20 times.
RFID tracking improves inventory accuracy, which allows you to reliably provide BOPIS as a service. You run the risk of selling anything for pickup that isn’t really in stock if you don’t have accurate, real-time inventory counts.
FAQ about RFID technology
What uses does RFID technology serve?
Supply chain management, access control, automobile tracking, inventory monitoring, textile tracking, real-time location systems, and event tracking are just a few of the numerous uses for RFID technology.
RFID sensor technology: what is it?
RFID sensor technology is a wireless communication method that tracks and identifies items using electromagnetic fields. A credit card that transmits data to a reader using RFID technology is a typical example of an RFID sensor.
What retail uses does RFID have?
By monitoring possible theft, RFID technology aids shops in managing loss and inventory control. It can also assist in finding things in difficult-to-reach or hard-to-find regions of the shop.
Why is RFID useful in commercial settings?
RFID simplifies inventory management and eliminates the need for employees to count items late at night in order to maintain stock levels. It is also useful for tracking merchandise loss and theft.