With many still focused on new year’s resolutions, retailers were already busy making future plans.
Bad recommendations hurt e-commerce. Online retailers must be armed with product and customer data to correctly recommend complementary products.
Data makes or breaks e-Commerce efforts. Online retailers must be armed with product and customer data to deliver the best product recommendations.
One of the most powerful growth engines is net negative churn.
Huge discounts and campaigns mean more clicks and more customers.
Huge discounts and campaigns mean more clicks and more customers. For example, Amazon.com’s Prime Day has ballooned in just four years to a 48-hour online shopping bonanza, which this year raked in a whopping $7.9 billion and sold 175 million products.
Recommending the exact complementary product for each customer’s needs is a challenging task. It requires more than just an algorithm. It involves understanding the products being purchased, anticipating customers’ desires, and expertly catering to what they want. This is something that online businesses — big and small — are trying to perfect, with retailers rushing to invest in new solutions in an attempt to find the answer.
Pairing customers with the right products isn’t as easy as it might seem. Recommendation engines have come a long way over the years, and most deliver satisfactory upsells. The perfect method of steering paying customers toward additional complementary products they actually want has proven difficult to nail down. This is critical to help ecommerce retailers to increase their profit.
As retailers fight to win online market share, they’re forced to up their game and push boundaries to meet customer expectations. The reality of competition in today’s cutthroat world of e-commerce translates into companies looking to one up or match their competitors, which is doing more harm than good to the industry. Many online retailers are picking and choosing features to reproduce their best offers, creating an online customer journey that’s often similar across the board. Furthermore, matching promises to achieve faster delivery and extend deals only feeds into this competitive environment. This forces online retailers to battle it out on a much less lucrative front: price.
Online shoppers no longer look for the best prices — they expect them. Price comparison tools and market saturation means that price is the point of difference that ecommerce customers care about most. In turn, profit margins continue to shrink as the industry competes on price to secure shoppers.