Online retailers and small to medium-sized businesses are leveraging artificial intelligence to help streamline the shopping experience for their customers over the holiday rush.
As we reach the end of the year, many businesses and retailers are scrambling to meet the high demands of the holiday season. There has been a shift to digital shopping methods post-pandemic, and the holidays sure aren’t an exception. Retailers are expecting a spike in online shopping orders. According to VentureBeat, 81% of online retailers are looking to artificial intelligence (AI) to manage and boost their sales leading up to the holidays. Small to medium-sized businesses are following this AI trend, because they may not have the same manpower as shopping giants.
AI to help small businesses manage shopping experience
In June 2021, Wal-Mart introduced an AI algorithm that was said to offer smarter solutions to shoppers when it comes to groceries. This technology provided the ability to predict consumer behaviour and provide substitutions. Overall, it created a streamlined shopping experience. It seems that small businesses are now following suit.
According to the 2021 e-commerce analysis by Anodot, small businesses are expected to use a similar method of enhancing shopping experiences using artificial intelligence (AI). Companies like Amazon uses AI to recommend related products to users within a specific category. This process is called cross-selling and upselling, which is said to be responsible for approximately 35% of Amazon's overall revenue. Businesses will be able to use this strategy to help provide shoppers with a more personalized shopping experience by providing recommendations based on their preferences. This method will be especially helpful in assisting shoppers during the gift-giving season.
An example of this is SokoLocal's Collections, which groups items based on topic, category or interests to help shoppers find items they are looking for within any vertical.
Another way artificial intelligence will help businesses during the holiday season is through transaction security. Online retailers are using AI to help identify fraudulent transactions and protect against e-commerce fraud, which according to the Association of Certified Fraud Examiners, increases by nearly 20% during the holiday shopping season.
Online retailers will be able to leverage technology and innovation to provide an easy and safe shopping experience, which will help build a loyal customer following.