Why are consumers increasingly turning to deferred payments? eCommerce news #no. 50

How to start August with a bump? By discovering the latest news from the world of eCommerce with the anniversary edition of Adox Press! In the 50th edition of the publication, as always, we present three industry news items that caught our attention. This time you can learn about, among other things: the future of artificial intelligence in e-commerce, Amazon's space plans to develop its own sales, and the growing popularity of deferred payments. Don't delay and get the details now!

How to effectively use AI in your online store?

Artificial intelligence is often discussed in the context of changes taking place in the approach to online sales and the emergence of new models for managing online stores. However, as it turns out, in Poland, AI-based tools are not so often used at all - only 13% of companies currently use them. On the global market, this percentage reaches almost 40. Why such a difference?

An attempt to answer this question was made by the consulting firm KPMG in cooperation with Microsoft. In a study entitled: "Business Digital Transformation Monitor," the specialists analyzed the technological changes that have taken place over the years in Polish companies. They largely examined the development conditions for technologies based on artificial intelligence. Not so long ago, the implementation of AI-based tools was associated with major challenges on both the technical and budgetary sides. However, with the rise in popularity of language models (e.g. Chat GPT), the deployment of new solutions in companies is clearly accelerating. Currently, companies are most often choosing to implement AI as part of:

• Support for marketing activities (50%),
• support in the production area (46%),
• controlling the supply chain (42%).

Interestingly, more than 60% of organizations implementing AI functionalities do not monitor their effectiveness. However, companies keeping such statistics almost always declare that the start of such activities has had a positive effect.

However, the study does not refer only to the concept of artificial intelligence. The creators of the publication also draw attention to other areas of digitization in Polish companies. Above all, integration with external systems enjoys considerable popularity among managers. Nearly half of businesses use ERP (for managing resources such as products) and CRM (customer relationship management) systems to automate daily operations and optimize costs. Top technologies in business also include cloud solutions and mobile applications.

Find out how else digital transformation can improve the daily operations of your business. Find the full report here.

Amazon's marketplace takes bold step to improve sales

Cutting-edge technologies powered by artificial intelligence are no longer enough for global eCommerce market leaders. Marketplace Amazon plans to use the space to increase sales efficiency. What does this idea consist of?

The company has invested more than $100 million to build the facility at the Florida Space Center. The designed infrastructure is to consist of 3236 satellites. The basic premise of the project is to create fast and affordable connectivity for all communities around the world, especially those inadequately served by existing solutions. The developers plan to finish the project next year. Meanwhile, Amazon will launch two prototype satellites within the next few months to test the performance of the network and subsystems.

How do you think such wide-ranging steps will contribute to equally impressive changes in the industry? Read more about Amazon's project here.

Deferred payments on the rise. Report by Kearney

What is the phenomenon of deferred payments? This payment model, known globally as Buy Now, Pay Later allows customers to flexibly schedule payments over time (e.g., a month after the transaction), while guaranteeing immediate shipment of products. Interestingly, Poles are among Europe's top users of this payment method. What else can you learn from reading the "European Retail Banking Radar 2023" report.

The report's creators, the Kearney consulting firm, recognized that:

• The majority of BNPL users (73%) use this payment option up to 5 times a year. The rest of the group use this payment method 6 times or even more often.
• Buyers in this way most often purchase products from categories such as home furnishings, fashion and travel.
• The deferred payment market is overwhelmingly occupied by companies not affiliated with banks. In Poland, as much as 60% of such services are offered this way.

Deferred payments are not only a convenience for consumers, but also an opportunity for online store owners. By deciding to implement BNPL in their online store, it is possible not only to strengthen competitiveness, but also to meet the demands of buyers. Do you respond to the needs of a dynamically changing market? Find out by reading the full edition of the report.