Artificial intelligence and online sales - the perfect combination? eCommerce news no.43

What factors are influencing the changes taking place in eCommerce? There are certainly many, but among the most important are the economic situation, consumer needs and laws governing the market, as well as... artificial intelligence. Finding your way in the new reality requires constant monitoring of new news in order to stay abreast of the latest trends and not be overtaken by the competition. We present a compilation of the most important news from the world of e-commerce in the 43rd edition of Advox Press. Take a read and make a step towards the future in eCommerce.

Will artificial intelligence dominate eCommerce?

The latest 4th version of Chat GPT, a tool based on artificial intelligence, has already surpassed more than one million active users in the first week after its release. Such results bring to mind the question: how is the continuous development and spread of artificial intelligence shaping eCommerce? E-shop owners are increasingly willing and bold to use AI (Artificial Intelligence). The above relationship is confirmed by the results of a study conducted by Gartner, according to which by 2027 ¼ of businesses will rely on virtual assistants in the customer service process. And how are online stores currently using artificial intelligence?

• Generate personalized product suggestions for customers based on history of previous searches or orders placed,
• Creating product descriptions and other content for the e-commerce site,
• Providing ongoing answers to questions from users interested in shopping on the platform (e.g., concerns about returns or expected delivery times),
• Analyzing the customer's purchase path based on a study of interactions with various elements on the site,

The above actions are not only an opportunity to increase sales and improve customers' shopping experience (as 70% of surveyed entrepreneurs are convinced), but also an opportunity for faster brand growth through more efficient division of labor and process automatization. With AI tools, employees can focus on more complex and complicated tasks, using their full potential.

In conclusion, the development of artificial intelligence brings many benefits to eCommerce companies - you can read about them here. Are you already using AI in your online store?

Does the fashion industry still reign supreme in the world of e-commerce? Admitad report

Both traditional and e-commerce performance depends on a number of external factors - the economic situation often has a particular impact on market development, as can be seen today. It is forecast that 2023 and the accompanying inflation and economic crises will slow down the development of many sales companies. However, does this mean that no industry will have a chance to grow? Not exactly - optimistic results in the first quarter of this year were achieved by online stores selling fashion clothing and accessories.

According to a report prepared by Admitad, Polish eCommerce sales in the fashion industry have increased by as much as 27% over the past four months. This result is even more satisfying if we take into account the fact that the fashion sector was one of those hardest hit by the pandemic crisis. Its recovery and return to pre-2020 levels took up to two years. What factors are driving the current growth of online sales in this area and making the fashion market one of the more crisis-proof industries?

• Seasonality - customers most often choose to replenish their closet in spring, which is when seasonal sales begin.
• Inflation - the decline in the value of money prompts buyers to look (usually online) for more attractively priced items.
• New sales channels - customers make fashion purchases not only through e-shops or marketplaces, but also increasingly use platforms that sell second-hand items (in line with the trend toward reCommerce) or social media shopping options.
• Innovative product presentation tools - industry leaders are increasingly implementing virtual fitting rooms in their stores, allowing customers to get a better idea of how a product will look on the figure. In this way, they minimize the risk of returns and dissatisfaction with the transaction

Industry representatives should not, however, lose vigilance over the satisfactory results at the beginning of the year. The situation on the market, customer expectations and technological trends will change dynamically - so, as in the last quarter, it is worth constantly monitoring the changes and adjusting your online store to them as soon as possible.

How do you assess the fashion sector's position in the world of e-commerce in the next quarter? You can read more about the health of the industry here.

Legislation in line with e-consumer needs, or what the omnibus directive hides

The Omnibus Directive was one of the most common topics discussed when talking about eCommerce at the beginning of 2023 - online store owners had to adapt the functioning of their platforms to the newly applicable EU regulations. We have written on our blog more than once about how to prepare your business for the changes (we even created an eBook on this topic). However, this year's changes don't end there - it's worth remembering that in addition to the Omnibus Directive, the provisions contained in 2 other acts regulating online sales also came into force in January. Also to be included in the triad of EU directives are the Digital Directive and the Goods Directive. Although the regulations have been in force for more than a quarter, their application in practice is still a difficulty for many e-entrepreneurs. What exactly are the areas affected by the above changes?

The primary goal of the new regulations is to increase the protection of online shoppers and to regulate the gaps created by dynamic technological advances in commerce. The most important changes related to the implementation of EU regulations on the regulation of payment for digital content (the Digital Directive) and clarification of the issue of non-conformity of goods with the contract and warranty. The latter issues are the subject of regulation of the Goods Directive - the regulations contained in this act have attracted particular attention of entrepreneurs, as transparent terms of complaints largely affect positive purchasing decisions of the customer. This is confirmed by a WEBCON survey, which shows that 64% of Poles abandon purchases when the terms of complaints or returns remain unfavorable.

What should be paid attention to in order to meet consumer requirements in the area of returns and at the same time ensure compliance with the Goods Directive?

• Increasing the scope of the seller's liability for the goods - if the purchased item does not meet even one of the specified criteria, the buyer will be able to exercise his rights under the consumer warranty. The aforementioned creteria include, among others, the description of the goods, their intended use or the inclusion of instructions or additional accessories with the order.
• Extension of the warranty period - after this year's changes, a customer can file a complaint up to two years after the delivery of the product. In turn, the seller is required to respond to the complaint within 14 days (previously 30 days). In the case of a successful complaint, the goods must be collected from the customer at the expense of the e-tailer.
• Consideration of the possibility to complain about goods with digital elements - this privilege applies only to such articles whose digital services (e.g., software, operating system) are an integral part and are thus the subject of the concluded contract (e.g., smart watches, smart home appliances or televisions equipped with AI tools). In the event that a product does not work properly due to software bugs, the vendor is obliged to provide the appropriate system updates. However, their installation within a reasonable time is still the responsibility of the buyer (the trader is not liable for damages related to the fact that the customer did not perform the update).
• Introducing a hierarchy of complaint claims - the customer should first apply for repair or replacement of the product, and if the seller refuses, he can only request a refund or price reduction.

You can read more about this year's changes in this article. How do you assess their application in practice?