Emerging technologies may help boost online retail sales
New technologies have transformed the e-commerce business. Not only have they made businesses more efficient, but they have also allowed retailers to offer more bespoke content for customers. Personalisation is the order of the day.
Emerging technologies In e-commerce
While the basic concept has been around since the mid-1990s - thanks Jeff Bezos - e-commerce hasn’t remained static. Thanks to competition, companies are continually looking for ways to up their game and improve customer service.
Retailers are leveraging all sorts of new technologies, including the cloud and AI, to improve operations and the customer experience. They’re also using innovations to better manage the omnichannel experience, something that’s becoming expected by online buyers.
Changes In consumer habits
According to a recent IBM report entitled “Consumers want it all,” e-commerce retailers are facing an uphill struggle.
While buyers want companies to offer low prices and fast delivery, they also want sustainable packaging and ethical product sourcing. Most consumers don’t realise that those two sets of goals are in conflict with each other.
In 2022, e-commerce firms are playing a game of catchup with their customers. With expectations now riding sky high and consumer demands becoming ever more challenging, brands are turning to technology out of desperation to make the impossible happen.
To counteract falling attention spans, a lot of e-commerce firms are engaging in “shoppertainment.”
Instead of just presenting goods on their sites and hoping that people will buy, these schemes actually turn e-commerce stores into entertainment outlets. Consumers want low prices and fun at the same time.
While the idea sounds strange, it’s already in practice across a range of sectors. For instance, augmented reality tech, for instance, allows customers to play games in-store. Going to the shops could be a great way of leveling up characters on Pokémon Go.
Today, retail is being driven by a new wave of consumers who expect all businesses to offer the same level of service as Amazon. What’s more, they increasingly expect to be able to interact using new technologies.
For example, consumers are asking clothes stores to offer online AR and VR changing rooms so that customers can check out products before they buy them. They’re also increasingly demanding real online loyalty programmes.
Supply chain efficiency
We’re also witnessing the growth of technologies designed with supply chain efficiency in mind, particularly since the pandemic. What’s happening here is partly a response to the pandemic, but it also reflects changes occurring at a deep level.
Until recently, it was almost impossible for retailers to react sensibly to sudden changes in consumer demand. There were only shortages -- as experienced with hand sanitizer in the run-up to the pandemic -- or gluts.
However, with better integrated demand planning tools, that’s all changing. Retailers are now able to set up direct links of communication with players throughout the supply chain to coordinate responses.
The moment that shops detect an uptick in demand for a certain product, the entire supply chain can kick into action to meet the need.
Data gathering
Given changing economic circumstances and consumer demand, many e-commerce firms are becoming data gathering experts in their own right, or working with IT support companies.
Retailers, for instance, want to make sure that they have enough provisions to meet all their customers’ needs in peak festival periods.
For that reason, it’s critical that they embrace the full power of the cloud, gathering data wherever it shows up and then putting it to work. Firms that can better analyze their data are also those in the best position to boost sales and increase their market share.
Mobile data is also a critical flashpoint for boosting online sales. With more people using their phones to buy products online, it has never been more important for brands to optimise their mobile sites.
New technologies
Of course, AI and Big Data aren’t standing still. Instead, progress in the field is rapid.
Every year, the software becomes increasingly capable. By the end of the 2020s, it’s highly likely that there will be bots that pass the Turing test.
For e-commerce firms, such breakthroughs could have significant implications. Chatbots, for instance, could communicate with customers about their needs and then direct them to products or services that might interest them.
AI could also improve the customer journey by enhancing interactions with brands. Instead of waiting to get through to a human rep, bots could answer questions and provide solutions straight away.
If all this sounds futuristic, then note that many of these developments have already occurred. Firms are already putting chatbots in place that are able to curate customers and send them through to the right handling agents.
During Covid-19 such technologies become increasingly important. Ecommerce retailers weren't always able to get the staff that they needed due to sickness, so they turned to bots instead.
These clever algorithms then answered all their customers’ questions and only forwarded the most intractable troubleshooting to human agents.
AR and VR
For years, futurists have been predicting the advent of both AR and VR in the retail space. However, thanks to the pandemic, progress on this front is accelerating.
The technologies are being used to allow people to get a fully-fledged shopping experience without the need to step out of their homes.
AI powered filters are making fitting rooms highly realistic, showing people what they will look like wearing certain outfits or getting their makeup done. They’re also helping with home shopping.
Personalisation
Lastly, we’re seeing technology enable better personalisation, the key to higher engagement, brand loyalty and sales. Consumers, many commentators believe, are much more likely to shop on sites offering a bespoke experience.
Personalisation can occur along many lines. These include:
● Using the user’s name in products
● Allowing the user to choose product specifications
● Only showing users products that are suitable for their income or demographic
● Displaying products that users are most likely to appreciate, such as those with green credentials
● Providing extra information about how to reuse or recycle the product
