Tag: ecommerce (Page 1 of 10)

“AI-powered chatbots played a key role in boosting online sales” Did They Really?

As a customer, I found that AI-chatbots can sometimes be very convenient, but many times a nightmare to deal with. So I was skeptical when I read in an article I won’t link here that “AI-powered chatbots played a key role in boosting online sales during the 2024 holiday season”.

Convenience alone doesn’t necessarily equal increased revenues, not to mention these are often implemented as a cost saving measure by companies. While chatbots might help speed up simple tasks like tracking an order or processing a return, they still aren’t there when it comes to complex inquiries and making sales.

Are these AI-driven tools really boosting sales because they improve the customer journey—or would the customer have purchased the same items through a different journey? And what’s the long-term impact on brand loyalty when customers are left frustrated by unhelpful bot interactions?

I have no doubt that AI has a ton of potential in ecommerce, especially with product discovery and personalization. But retailers should find the right balance between authenticity and the use of AI. No customer wants to deal with an AI when trying to buy something, and feel like they are trying to reach customer service but the AI won’t let them talk to an actual employee.

The Returnuary Tragedy: Why Can Return Policies Make or Break a Business

What do you do when the ugly sweater you got for Christmas doesn’t fit? Chances are, it’s pretty easy to return it—and maybe even hopefully exchange it for something you actually like. Now, multiply this by millions of dissatisfied customers, and you’ve got “Returnuary,” a term I have recently read in the news to describe the period of time in January, after the holidays, when retailers see an influx of returns.

The scary part? According to an article published on PYMNTS, the rate of product returns went from 8.8% in 2012 to 14.5% last year. Returns aren’t just a pain for retailers —reverse logistics are also a massive expense.

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Other News From November 2024

Like every month, there are some other news pieces I didn’t elaborate on but still found interesting. I’ve shared my thoughts on the linked articles, which come from various sources. I hope you find them interesting! Let me know if you think I missed anything big.

Amazon-Walmart Rivalry and Loyalty Programs

Interesting article on the Amazon-Walmart rivalry. I agree with the author that the two companies are becoming increasingly similar, and loyalty programs could make a difference.

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Amazon’s 3P Sellers Face FBA Bottlenecks Before Black Friday – Will 2025 Be Any Different?

Benjamin Franklin may have said, “In this world, nothing is certain except death, taxes, and supply chain nightmares before the holidays.” And I’d agree with him. To be fair, the marketplace has become so competitive and complex that large variations in volumes are bound to create some troubles. However, it seems like this year has been especially challenging for those selling through Amazon FBA.

Should we blame the port strike earlier this year, larger volumes of inventory being shipped, or other factors? In today’s article, I’d like to go over what happened with Amazon and see how the company is dealing with it. We’ll then look at how sellers were impacted, but more importantly, why fixing these issues is critical for the ecommerce titan.

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Online Thrifting in the Age of AI: How to Preserve the Treasure Hunt Experience

My favorite thing about thrifting is the treasure hunt. You never know what you’ll find or how good of a deal you’ll get. Thrift stores and garage sales have always been my go-to, but the internet has brought us even more options. Platforms like eBay, Etsy, Craigslist, and Facebook Marketplace offer a million possibilities for finding secondhand items. Some are even industry-specific, like Vinted and ThredUp in the fashion industry. Thrifting has always brought me joy and excitement, but some people worry that the fun of the treasure hunt might be coming to an end.

With new technologies, especially AI, everything is becoming a lot more “optimized”. If algorithms can quickly find the hidden gems, what’s left for people like us? Today, we’ll see how technology has impacted online thrifting and the secondhand market, and how the experience has changed over the years.

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Zombies and Witches Favor Online Shopping: How Spirit Halloween’s Online Strategy Meets Their Expectations

If you live close to a large city, you’ve probably seen all these Spirit Halloween stores popping up recently. It’s impossible to miss them with their bright orange signs. I find it impressive that a company can generate enough revenue during the Halloween season to have the resources to open all of these temporary locations. But what’s even more impressive is that, even when operating within such a short time frame, they place a heavy focus on the online experience.

Let’s see how this company operates and review some key parts of their online strategy. Spirit Halloween recently added some interesting shipping options and seems to perform well online. Halloween is certainly an interesting time of year for businesses, and I thought it would be insightful to examine one of these extremely seasonal businesses that succeed online.

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When Most Marketplaces Increase Fees, eBay Removes Them for Private Sellers: Why Would They Do That?

One of the biggest complaints among Amazon, Walmart, or TikTok Shop sellers is the ever-increasing fees. But eBay UK has taken the opposite direction for private sellers (those who sell items occasionally for personal reasons, without the primary intention of making a profit or running a business). eBay UK has removed selling fees for private sellers across all categories, except for motors. After removing fees for fashion items earlier, eBay has now extended this policy.

They’ve also introduced new features like simplified listings, AI-generated descriptions, and tracked shipping with prepayment by buyers. eBay says they want to tap into an estimated £9 billion in resale potential from 294 million unused household items. I don’t think eBay would do this only to contribute to sustainability (although it helps), so let’s look at how removing fees for private sellers could impact both sellers and the company.

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Is Temu Killing Dollar Stores? Why Are Dollar Stores Stock Prices Crashing

When I first heard about Temu, my initial thought was about how unsustainable the model seemed. But my second thought went to dollar stores: How could they compete with a website that makes it easy to find thousands of even cheaper items and have them delivered directly to your home, instead of having to search through the aisles of these stores?

Having recently read about Dollar Tree and Dollar General’s stock prices dropping significantly in the last quarter, I immediately wondered if competition from Temu and Shein was too much for these companies. Was my assumption correct, or is the situation more complex? Let’s see what’s happening with dollar stores and see if Temu is responsible for the drop in their stock prices. Then, I’ll quickly review what I observe on the digital side of these companies.

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