Retail and eCommerce-Leveraging Technology for Business Growth

To combat the cut-throat competition between businesses in retail & e-commerce sector, technological advancement are leveraged at an astounding pace. How technologies can aid in business growth, both in revenue and in brand identity becomes the key factor of sustainable business development in this space.?

In this blog, we’ll explore the cutting-edge technologies that are revolutionizing retail and eCommerce, examining their impact and potential for business growth. We’ll dive into real-world applications and success stories, showcasing how companies are using these innovations to thrive in the digital age.?

AI and Machine Learning in Retail?

These powerful tools have been the talk of the businesses in every sector. And E-commerce and Retail space intends to have a giant leap, through the application of these techs to enhance customer experiences, optimize operations, and drive sales.?

Personalizations and Predictions are the two most common areas that are being capitalized as e-commerce eCommerce technology trends and under retail technologies.?

Amazon’s recommendation system, for instance, is responsible for 35% of the company’s revenue. By analysing vast amounts of data on customer behaviour and preferences, AI can suggest products that customers are more likely to purchase, increasing conversion rates and customer satisfaction.?

The retail & E-commerce industry is aware of the tech’s transformative power evident from the statistic – 63% of retailers are planning to use AI for e-commerce operations in 2021.?

One of the successful use-cases is of Walmart. The retail giant has implemented an AI-based system called IJIT (Intelligent Just-in-Time) that has reduced out-of-stocks by 16% while improving inventory turnover.?

Retail Automation?

Automation is rapidly replacing the mundane and repetitive tasks of operations & management, leaving their human counterparts to strategize and achieve business goals. It is streamlining retail operations, from the checkout process to warehouse management.??

An overview of the processes in retail that can be automated are presented in the flowchart;?

A good example of Automation in retail is of Ocado, a British online supermarket, using a fleet of over 1,000 robots in its automated warehouses. These robots can pick and pack a 50-item order in just five minutes, significantly faster than human workers. This level of automation has allowed Ocado to process over 65,000 orders per week with 99.9% accuracy.?

Zara’s implementation of RIFD tags is also a part of e-commerce automation that has improved the fashion brand’s efficiency in operations.?

E-Commerce Personalization?

In the E-commerce business, customization can be the key differentiator of the businesses where competition is huge, but so is the market. According to a survey by Mailmodo, 65% of Ecommerce stores report an increase in conversion rates after adopting a personalization strategy.?

E-Commerce platforms are using tools such as AI-powered recommendation engines, dynamic pricing algorithms, and personalized email marketing tools as Personalization soldiers. These technologies help analyze customer data for giving tailored product recommendations, best pricing, and marketing messages with better click-rate, ccording to consumer behaviour.?

A success story in eCommerce personalization comes from ASOS, a British online fashion retailer. ASOS implemented an AI-powered recommendation engine that analyses customer browsing and purchase history to suggest relevant products. This initiative led to a 13% increase in average order value and a significant boost in customer engagement.?

Online Payment Solutions?

Digitalization has prompted innovative methods of payment too. Right now, it cabe inferred that majority of the population are using their smartphones as wallets rather than hard cash.?

Digital wallets and cryptocurrencies are making online transactions more secure and convenient, and are soon-to-be mode of payments in the future.?

One of the most significant trends is the rise of mobile payments. According to Statista, mobile payment transaction value is expected to reach $4.7 trillion by 2025. Companies like Apple Pay and Google Pay are leading this trend, offering secure and convenient payment options for mobile users.?

E-Commerce and Retail spaces are the most common platforms that the customer use this payment mode in. The future of online payments in eCommerce looks promising, with emerging technologies like biometric authentication and blockchain set to further enhance security and convenience.??

An example of this transformation is the Mastercard’s testing of a “pay by selfie” feature, allowing customers to authenticate payments using facial recognition technology.?

Omnichannel Retail?

Omnichannel retail & e-commerce means to provide a seamless shopping experience across all channels, whether online, in-store, or mobile. This approach considers the customer journey of using multiple channels in their shopping experience.?

The benefits of omnichannel strategies are significant. According to a study by Harvard Business Review, omnichannel customers spend 4% more in-store and 10% more online compared to single-channel customers.?

A notable case study of successful omnichannel implementation is Sephora’s “Beauty Insider” program. This loyalty program integrates customers’ online and offline purchase history, allowing for personalized recommendations both in-store and online. Customers can use in-store tablets to access their online profiles, view past purchases, and get product recommendations. This seamless integration has contributed to Sephora’s strong customer loyalty and continued growth in a competitive market.?

Conclusion?

The future of Retail & E-Commerce looks promising with emerging technologies dominating the business landscape. From AI, robotics & automation to Blockchain & cryptocurrency, There is a technology for every process of business operations in these sectors.?

Looking ahead, we can expect to see further advancements in areas such as augmented reality for virtual try-ons, voice commerce, and utilizing blockchain for supply chain transparency. They will continue to create new opportunities for business growth and customer engagement in the retail and eCommerce sectors.?

The key to success in this new landscape will be the ability to adapt and leverage these technologies effectively. Retailers and eCommerce businesses that are ready to embrace innovation and put customer experience at the forefront are opting recruitment of experts or outsourcing the task to industry leaders like Procal Technologies.?

So, Gear Up to witness a transformative technological scene in the retail & e-commerce industry.?