Amazon is the elephant in the room. According to the Internet Retailers Conference and Exhibition that took place earlier this month in Chicago, $4 out of every $10 spent online in the U.S. is with Amazon (43%). Currently, there are approximately 80 million Amazon Prime members – that’s 64% of households in the U.S.
So one might wonder, what the future holds for Amazon? Online sales in 2016 grew faster than they had in the past three years and accounted for 11.7% of overall retail sales. Traditional retailers are worried that online sales will “disrupt” them and put them out of business. Some should be concerned, but not all.
Whether you are a traditional retailer or a small boutique, you must have an online presence to maximize your potential. IRCE stressed four major areas to improve your online business: Artificial Intelligence, Personalization, Augmented Reality and Content.
IBM offers technology, Imagine Watson, that takes a retailer through three important steps in an online product launch. Watson analyzes past data, trends and prior successful promotions to suggest what would benefit this product launch. Then, it will make suggestions on what to say and how to promote (photos, promotions and pricing strategies). Watson will then take customers reactions and sales figures to determine what changes may be needed.
The best way to appeal to your audience is the concept of a personalized experience. Retailers often struggle with how to apply this personalization to the masses. Whereoware, a digital agency specializing in email marketing, search engine optimization and pay-per-clicks ads, suggests creating three to five “personas”. Personas are fictional characters that mimic real customers based on demographics and buying habits. Simply put, a company should create different promotions on its website. When the computer recognizes the customer, it sends him or her to the correct page based on past purchases.
AR is simply defined as “technology that enables digital data to be overlaid onto a view of the physical world and is interactive in real time.” For example, Sephora is using AR to create an interactive online experience by allowing the customer to upload a photo and “try on” different types and shades of makeup. This allows the customer to know exactly what makeup and color to purchase without having to go into the store. This technology can be applied to furniture, clothing, jewelry and more.
There is no customer that does not love content, especially when it's useful, relevant, and adds value to their buying experience. Good content will help boost customer engagement
Keep in mind, that this is just a small selection of the technology and concepts that are available to help grow your online business. The Starren Group are Amazon Sales Consultants that specialize in helping companies sell on Amazon. We focus on Amazon FBA consulting and Amazon product page optimization but provide a variety of services to help your business get listed and be successful on Amazon. Contact Us to learn more about The Starren Group and so we can learn more about your goals and objectives with Amazon.