RFID E-commerce

Nowadays online shopping has become a trend. The environment caused by the coronavirus has transformed the way we shop and online shopping gained popularity drastically. 

Managing e-commerce is a challenge for businesses when it comes to maintaining online stores with proper operations that cater to customers’ needs and drive profitability.

To run a successful online business, an inventory management system becomes a key aspect to focus on. E-commerce inventory management involves various steps like procuring raw materials, inventory tracking and shipment of goods.

RFID is an important concept which plays an important role in e-commerce business management. RFID is the short form for Radio Frequency Identification. 

Let’s dive deep into what RFID e-commerce is and the role it plays in e-commerce inventory management in today’s blog.

What Is RFID?

Radio Frequency Identification is a wireless technology that consists of two parts – tags and readers. Radio Frequency Identification is a wireless system that mainly consists of two components: tags and readers. 

RFID is pretty exciting to know, right!? Well, embrace yourselves as you read further about its uses and how it works.

Uses of RFID Technology

Here are the key uses of RFID technology in various processes

1. Asset Tracking and Inventory management 

Asset tracking RFID e-commerce involves a lot of processes in itself – whether it is checking for components on the production line or finished products during dispatch. 

2. Saves Time and Money through Automation 

RFID e-commerce technology removes the need for manual form filling and replaces outdated spreadsheets. 

3. Improvement of Data Accuracy and Availability 

Let’s be honest here. When a human collects data, there are chances of missing data, transcription errors or duplication of data which count as human errors.

4. Better control over production 

Let us take an example to understand this. For instance, RFID e-commerce could ensure whether specific molds are filled with the correct volume of liquids, or specific items end up on the right production or assembly lines. This could in turn lead to reduced wastage and efficiency improvement.

Now that you have come this far, you must be thinking about how to implement the same for your business. Don’t worry though, we have you covered! Read more to find out.

RFID Technology for Inventory Management 

RFID e-commerce works in the following ways to manage inventory effectively.

1. Tag Items 

RFID labels are put on goods and inventory. Depending upon your business, you can decide whether you want to place it at the highest unit of measure (like a pallet) or at an individual or item level. Each label is numbered or serialized. You may also use an RFID printer to automate the process of printing and encoding labels.

2. RFID Reader

 During the movement of inventory through the warehouses and distribution centres, the strategic RFID read points to collect data about the movement. In addition to this, RFID handhelds could conduct cycle counts or physical inventory counts. This speeds up the process compared to the manual counting process or stock audits.

3. Collection of Data 

The data that is collected could assist in making informed business decisions about tracking inventory throughout a facility or management of inventory levels. Plus, the conduction of inventory counts through RFID can help in cost optimization and resolve variances right away.

Benefits of Using RFID for Inventory

1. Decreased Labor Costs 

With the automation of the inventory management system, there can be a reduction in labour costs and employees can engage in other tasks which require skills.

2. Improved Visibility of Inventory

 With RFID, even the smallest components could be tracked and scanned. This improves the visibility of inventory.

3. Increases Accuracy

RFID removes the risk of potential human errors as we mentioned earlier.

4. Provides Real-Time Updates

RFID provides real-time updates about inventory which is essential for decision-making order fulfillment and seamless customer interaction.

FAQs: Everything You Need To Know About RFID in E-commerce

Is RFID better than barcodes?

Both RFID and barcode are two different technologies and they have different applications. In the case of a barcode, a scanner is required to scan the barcode to be read. Whereas in the case of RFID, it can be read as long as it is within the range of a reader. 

Is RFID a new technology?

RFID has been around since the 1970s and it is quite expensive for commercial applications. But if these tags are made cheaper then it can solve a lot of problems.

Can RFID lead to layoff?

Technology is an automated technology which requires few workers. But the total transition from the barcode to RFID will take almost a decade or more. And it is likely to create more jobs.


It is important to consider a few factors before deciding whether RFID is right for your e-business. You need to consider the size and layout of the business as RFID works best for large businesses with a linear layout. RFID is a good option to choose if your inventory is vast or involves complex components to scan; otherwise, the good old barcode is the way to go. Therefore, it is important to weigh the costs and benefits of RFID technology before proceeding with it.

Also one may consider opting for Qodenext for the best consumables. They source materials and cater to the specific needs of customers. To fulfil all your warehouse needs, visit their website today.

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