Introduction
Literature Review
Model of IoT Technology in e-Commerce Channel
Nash Equilibria with and without IoT Technology
Impacts of IoT Technology
Conclusion
References
Introduction
Internet of Things (IoT) refers to the use of sensors and other internet-enabled devices to collect and share data. IoT technology is widely regarded as a disruptive technology that is increasingly attracting the attention of many industries, such as e-commerce and healthcare. Worldwide IoT spending on hardware and software is expected to maintain a doubledigit growth and exceed the $1 trillion US dollar mark in 2022 (IDC Inc. 2019). The market revenue of IoT technology reached $100 billion US dollars in 2017, and this figure is forecast to grow to around $1.6 trillion US dollars by 2025 (Statistica Inc. 2020). Also, smart devices, that is, IoT-enabled devices, are becoming more popular, and the number of such devices is estimated to increase fivefold in 10 years from 2015, reaching 75 billion worldwide by 2025 (Statistica Inc. 2016). With more and more data being pushed to the cloud, IoT technology enables innovations in smart devices and applications such as location intelligence (Amazon Inc. 2020b). In the e-commerce area, it brings tremendous opportunities to the supply chain members, from manufacturers to online retail platforms. By using data gathered through smart devices, supply chain members can interact with customers on an individual basis. For example, manufacturers can design devices such as smart refrigerators and smart fitness systems (Griffith and Colon 2019, Rawes 2021) that can adjust the settings in the home environment based on the owner’s preferences. Because of the high cost and complexity of developing and maintaining IoT infrastructure such as security, data centers, and IoT analytics, it might not be cost-effective for device manufacturers to build their own IoT infrastructure. Instead, a device manufacturer can rely on existing artificial intelligence and Internet of Things (AIoT) ecosystems provided by online platform giants such as Amazon and Alibaba (the largest e-business platform in China) to create devices that gather, analyze, and act on data (Alibaba Inc. 2020, Amazon Inc. 2019).