How do you get the holiday season off to a good start? By making sure you're up to date with all the most important news from the world of eCommerce. The 48th edition of Advox Press will help you achieve this goal. In it you will read, among other things, about what the air-commerce phenomenon is. You will also learn about the development plans of Polish and foreign eCommerce leaders, and find out what changes the European Union is preparing in connection with the development of artificial intelligence. Sounds interesting? We invite you to read it!
Air-commerce, or why do customers buy air online?
Have you ever received a small order from an online store in a disproportionately large package? It turns out that similar situations happen often enough in the industry that they have become known as a "trend" called air-commerce.
A study by DS Smith found that in 2022, reckless packing of orders contributed to the generation of more than 40,000 tons of unnecessary carbon dioxide. That amount of CO² would be enough to fill the National Stadium 41 times over. Overly bulky cartons, excess fillers and film undoubtedly contribute to environmental pollution. It also affects the decision-making of shoppers - as almost half of them indicate that the ecological form of delivery is of great importance to them. On the other hand, almost a third of Polish customers experience unpleasant feelings toward the brand when they receive a shipment with a significant amount of empty space around the packaged product. Shoppers are also annoyed by the difficulty of opening the package and the excessive amount of sticky tape.
How can eCommerce owners minimize the infamous popularity of air-commerce? Even small measures can have significant effects - changing packaging by 1 mm can significantly reduce the negative impact on the environment, as well as optimize costs throughout the logistics process. Modern technologies also play an important role in combating air-commerce. Advanced systems such as automatic packaging machines are capable of matching the size and shape of packaging to a specific product, leading to minimization of unused space.
Work on reducing packaging has also been undertaken by the Parliament, which recently passed an amendment to a law imposing obligations on businesses to reduce the use of single-use plastic and other plastics. In your opinion, will these changes help eliminate the air-commerce problem? For more information on this issue, click here.
Are the summer months the best time for eCommerce development?
Although the holiday season has officially begun industry leaders are not slowing down. Recent weeks have brought a lot of interesting news regarding the development of online stores. What has changed in both the Polish and global markets?
- Youtube's video service allows users to shop during live broadcasts - although live commerce has had its ups and downs, the platform's developers recognize the potential of this format. The first official channel testing the solution was launched on June 30 in South Korea, where the live shopping market has exceeded more than $7 billion in previous years.
- Fast fashion online store Shein plans to transform itself into a marketplace - Chinese eCommerce is gaining popularity, offering its customers clothes in line with the latest trends at low prices. In response to the growing needs of shoppers, the platform's managers plan to expand their offerings to include other products (such as electronics and gadgets) from third-party suppliers. Among others, the shoe brand Skechers has already started cooperation with the company.
- Allegro is betting on multiapplications - Poland's largest sales platform also plans to diversify by entering into partnerships with other companies. Allegro is betting on so-called "mini-apps," i.e. functionalities that will help users in their daily shopping whether they make purchases through the platform or not. The mobile application will feature, among other things, the ability to create recurring shopping lists, price comparisons and space to store loyalty cards.
You can read more about the Allegro idea here. Which piece of information came as the biggest surprise to you?
Artificial intelligence in line with European Union vision
Artificial Intelligence has made its way into our daily lives for good - many people use tools based on Artifficial Intelligence (e.g. Chat GPT or Midjourney) for personal or professional purposes. The use of AI is also noticeable in eCommerce. In the last issue of the Press, you could have read, for example, about Google's idea to use it. Although the new technology abounds in many benefits such as streamlining work and accelerating development, it undoubtedly also carries some risks associated with its abuse. This risk has been looked at by the European Union, which has drafted the world's first comprehensive legislation on AI. What issues does the new legislation address?
The act defines the responsibilities of suppliers and users according to the level of risk represented by artificial intelligence. AI systems are divided into 3 groups:
1. Unacceptable risk AI systems
barring certain exceptions, these are systems that should be completely unacceptable due to their high degree of risk. Examples of such software include real-time and remote biometric identification systems, such as facial recognition.
2. High-risk AI systems
this group includes systems that can significantly affect the security and basic rights of society. They are divided into two categories. The first is systems used in products covered by EU product safety regulations (e.g., toys, aviation, automobiles, medical devices). The second, in turn, includes systems belonging to eight specific areas that will have to be registered in the EU database (e.g., education or law enforcement). This type of software will have to be verified each time before it is put on the market and during its life cycle.
3. AI systems of limited risk
the last group includes technologies with the lowest degree of risk. They should meet minimum requirements in terms of transparency and enable informed decision-making. This category includes image generators, audio or video content, or systems that create deepfake videos, among others.
Parliament agreed on its negotiating position on June 14, 2023, and intends to begin negotiations with member states on the final form of the law soon. The goal is to reach an agreement by the end of this year.
The main idea behind the new law is the assumption that rapidly developing technology must be regulated. Do you agree with this belief? You can read more about the EU action on the European Parliament's website.
