AI is changing the world of eCommerce, but that’s not all it’s revolutionizing. When leveraged properly, AI is a powerful tool that can boost sales and customer retention, while delivering customers an improved shopping experience. With advanced capability, you will want to work with an AI expert to properly implement and support AI technology. To free up cash flow to invest in AI technology and prepare for an increase in sales, you may want to take advantage of inventory financing or eCommerce financing.
Before uncovering the best financing solutions to grow your business, here’s what you should know about eCommerce AI and how it’s changing the world of eCommerce.
What is AI?
Artificial intelligence (AI) is a technology designed to simulate human intelligence by machines. AI technology can perform the cognitive functions of the human mind. It can understand perception, reasoning, learning, and interacting within an environment, problem-solving, and even creativity of the mind. While AI is complex and extremely advanced, the applications of it are not. However, the behind-the-scenes work with the data generated is mind-blowing. AI is incredibly capable and customizable, creating tremendous opportunities for businesses.
How is AI being used in eCommerce?
AI is transforming the way businesses market and reach customers. It has limitless capability to help business owners understand customer behavior, such as purchasing behaviors and trends. Additionally, companies can use AI to deliver personalized product recommendations, tailored sales campaigns, chatbots to improve customer experience, dynamic pricing, and more. For example, if a customer has been researching sleeping bags for camping with a baby, AI can help you identify that and recommend a product that matches their search criteria. Customers love eCommerce because it can make finding what they need easier and more convenient. Additionally, they can compare products and reviews, while accessing more options. To remain competitive in the eCommerce space, you will want to give customers what they want. AI can also help you deliver customers a personalized experience, thus strengthening their bond with your brand.
While eCommerce can help businesses keep overhead down, investing in AI, marketing, and other technologies will be important. Remember, customers have more options at their fingertips when they shop online. Therefore, you will have to go the extra mile to capture their business, and another mile to retain it. When marketing to customers, deliver value. AI can help you do just that by understanding their needs.
5 Ways You Can Benefit from AI in eCommerce
1. Personalized product recommendations
With so many options available, and a lack of personal touch in the eCommerce world, providing personalized recommendations can help you capture more sales. Additionally, it can enhance the shopping experience for the customer. Personalized recommendations can be generated based on the customer’s behavior, recent purchases, search history, and so forth. The recommendations can be for a specific product AI knows they are interested in, or perhaps something related, the customer won’t know what they need or want until they see it. Additionally, if you can increase the sale, you can combine the effective recommendations with a coupon or sale to seal the deal. By getting the right products in front of customers, they can feel as if you truly understand their needs.
2. AI chatbots
Customers can shop online 24/7. While you can operate business hours for customer support with a live person, chatbots can aid in a customer’s online shopping experience. As you may know, some chatbots are more helpful than others. If you choose to use chatbots, ensure they can improve customer experience, not just leave them frustrated. Chatbots can simulate human interactions. Customers can chat with chatbots online to get questions answered and get the help they need. They can suggest pages or things they think the user wants to see.
3. Customer segmentation
While you may have a general target market, several segments lie in between. Previously, companies would send a mass email to all customers or a flier in the mail. However, marketing things to customers that aren’t of interest can make your brand lose credibility. With AI, you can segment customers and tailor marketing based on their interests and behavior. This can improve the bottom line while refining marketing budgets. Data-driven algorithms can be used to segment customers.
4. Smart inventory management
AI can improve inventory management, as it can identify trends and provide recommendations about what to reorder and when. It can also help you track inventory in real-time while providing suggestions. By understanding consumer behavior, you can forecast sales and identify opportunities.
5. Business loan underwriting
AI is commonly used in the lending world, as it can help predict the future behavior of an individual. For example, if an individual tends to lose their job every 2-3 years or make payments for 4-6 months and then stop, there’s a good chance these patterns will be repeated. AI can help lenders make real-time lending decisions to offer preliminary loan offers. This has removed the need for a human to process an application just to generate an offer.
Future of AI in eCommerce
AI is here to stay in the eCommerce world. As it continues to evolve, shopping experiences get better and better. Companies that use AI in eCommerce should evaluate it consistently to find new ways to improve. AI can boost sales, strengthen customer relations, and help you operate a lean business.
How Customers Can Be Better Served with Kickfurther
With inventory funding, businesses can keep up with customer demand while improving operations. With working capital to purchase inventory, businesses can improve the overall functionality of their business. Access to additional working capital can allow business owners to reduce stress and run their businesses with a more customer-centric focus. While the bottom line always matters, oftentimes, decisions on policies or situations can be dependent on financial backing. Kickfurther can fund up to 100% of inventory at up to 30% cheaper than other options.
How Kickfurther can help
Investing in technology is a smart way to improve customer experience, operate efficiently, and grow your business. However, it requires capital to make investments and refine how things are done. To free up cash flow, businesses often need to access inventory funding. Kickfurther funds up to 100% of your inventory costs on flexible payment terms you customize and control. With Kickfurther, you can fund your entire order(s) each time you need more inventory and put your existing capital to work growing your business without adding debt or giving up equity.
Do you need more reasons to choose Kickfurther?
No immediate repayments: You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow.
Non-dilutive: Kickfurther doesn’t take equity in exchange for funding.
Not a debt: Kickfurther is not a loan, so it does not put debt on your books. Debt financing options can sometimes further constrain your working capital and access to capital or even lower your business’s valuation if you are looking at venture capital or a sale.
Quick access: You need capital when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.
Kickfurther puts you in control of your business while delivering the costliest asset for most CPG brands. With more free cash flow you can allocate more resources toward investing in AI technology. While inventory funding may increase your cost of goods sold, AI technology can reduce expenses over the long term while increasing sales. When deciding what’s best for your business, think long-term. See the vision that once encouraged you to take the leap into business ownership and keep chasing it.