Sometimes innovations in technology move so quickly, it can feel like you’re in a sci-fi novel. Like the shifting dunes of Arrakis, the ecommerce landscape is constantly changing because technology is a driving force behind how consumers buy.
As online shoppers turn to new tech to cater to their convenience, ecommerce retailers must adapt to remain ahead. Here we look at how technology is influencing shopping habits online.
Personalisation is a massive driver for customer engagement, with nearly two thirds of global shoppers being open to buying new products or services recommended to them by generative AI1. With AI able to really delve into shopping data, it can act with insight when recommending items. By analysing shopping habits and data of users from social media, purchase history, and browsing patterns it can offer hyper personalised services.
Clothing retailer, The Very Group has been particularly forward-thinking with adopting AI technology on its app and website. The implementation has a focus on enhancing aspects like marketing emails, ad relevance, and personalised homepage content. Additionally, it has tested real-time, customer-specific offers through push notifications in its app.
Consumers still trust human recommendations over AI, with 89% of shoppers preferring a recommendation from their friends and family.2 Whilst being open to AI, the preference for other sources of shopping inspiration seems to come, at least partly, from an unfamiliarity with AI tools.
Those who are more au fait with using AI tools have far fewer reservations about accepting its direction on shopping, with 81% saying they would trust AI recommendations. This drops to 52% for those who aren’t regular AI users but are comfortable using a trusted shopping site’s AI tool. And only 34% of these would trust recommendations from a separate AI tool (not associated with a shop).3
To attract less AI-savvy consumers, implementing AI recommendations should be intuitive, without drawing attention to the fact it’s there at all!
Live-stream commerce – a real time online shopping experience that combines online streams with selling products - brings the shop to consumers’ living rooms. Platforms like TikTok and Facebook make it easier than ever before to reach UK customers, with nearly three-quarters using social media platforms like these for real-time commerce experiences in 2023.4
US based pet store Petco, came up with the idea of using livestreaming to show off its products by hosting a doggy fashion show that showcased shelter dogs wearing its products. By just having an innovative take on how to display their products, it generated a 12% uplift in online traffic for the retailer, reached nearly 1m people and managed to get all the shelter dogs featured adopted!5
Livestream commerce can be simply achieved for retailers. With a smartphone and a product to sell, it can be scaled no matter the size of your business. Even smaller brands can create a community around their streams and offer authentic interaction with viewers.
Marrying the immediacy of live video with the convenience of online shopping can help create an engaging experience for customers that drives sales. With real-time customer interaction, you can answer questions and demonstrate the product, whilst appealing to a customer base that isn’t in your location.
With a digital overlay that can be viewed using smart devices, Augmented Reality (AR) can help customers see products within a real space – like in their homes or even on their body – before making a purchase.
ASOS has used the technology to show online shoppers how clothing would look on them before they buy with virtual fitting rooms, helping them stay engaged with the shopping process, whilst also trying to minimise the likelihood of returns. In a similar vein, Schwarzkopf use AI to show how their hair dyes will look on customers with their specific hair colourings. It can also be used for visualisations in home décor shopping: Dulux’s Visualizer app allows users to see how different paint colours would appear in their own spaces.
Virtual showrooms take this one step further to display products with features that are typically made to order. Automotive manufacturers like Audi and BMW use virtual showrooms to show each car’s features, in the exact model, colour and package that the driver wants, without having to waste resources. Potential buyers can then also request a home-based test drive without having to go to a physical showroom.
With these innovative ways to display product features, it’s no surprise that 86% of brands who use AR state it helps to drive new sales, acquire new customers and drive performance metrics.6
The rapid adoption of smart speakers, as well as the use of voice assistants on other smart devices, has led to a real boom in voice commerce, where shoppers can order items with just a phrase. In 2022, 48% of consumers used voice search to make purchases, increasing by 12% from the year before.7
Gaining traction because of its simplicity, voice search allows consumers to use it whilst cooking, cleaning or driving – meaning they can instantly order when they realise something is needed without switching from the task in hand. It also provides accessibility for customers with disabilities, allowing for the easy and independent ordering of essentials without the need to pick up and touch a phone or computer.
Voice search also allows users to research products and services on the go, with 19% of UK consumers using it whilst physically shopping.8 This means that, shoppers can instantly learn more about your brand or product, even when browsing the supermarket shelves. By optimising your site for voice search, it allows you to be found with greater ease.
Consumers are driven by convenience, flexibility and accessibility. Tech that helps them to buy their way will only grow in popularity... and that presents both opportunities and challenges for ecommerce retailers.
From the personalised experiences powered by AI to the engaging interactions of live-stream commerce, businesses must embrace change to meet the evolving consumer expectations.
If significant investment is a barrier, smaller retailers can start with the low-hanging fruit. Making sure your website is optimised for voice commerce or implementing a live-stream strategy with just a smartphone is a great start and can help keep you competitive in a global online market.
Footnotes
1 Statista, https://www.statista.com/statistics/1419129/consumer-interest-in-ai-shopping-advice-by-generation/, 2023
2 Ipsos, https://www.ipsos.com/en-us/shoppers-prefer-ai-explain-things-and-save-them-money-not-recommend-products, 2024
3 Ipsos, https://www.ipsos.com/en-us/shoppers-prefer-ai-explain-things-and-save-them-money-not-recommend-products, 2024
4 Statista, https://www.statista.com/statistics/1346214/most-used-live-shopping-platform-uk/#:~:text=According%20to%20a%202023%20study,'%20livestreams%20and%20apps%2C%20respectively, 2024
5 Bryan Wassel, https://www.retailtouchpoints.com/topics/retail-innovation/how-petco-turns-live-shopping-events-into-long-term-social-commerce-activations, retail touchpoints
6 2022 Ipsos Augmentality Shift Study commissioned by Snap Inc. | Base Brands: Global AR users n= 700 | Q: In which, if any, of the following do you think AR could bring value to your organisation / key client] at an overall level? (NET Brand Driving Sales / Improve Metrics: ‘Drive in-store sales’, ‘Create new digital purchase channels (DTC)’, ‘Acquire new customers’, ‘Drive performance metrics (Sales, lead generation, app installations etc)’, ‘Drive return on investment (ROI)’)
7 Geetika Chhatwal, Kadence International, https://kadence.com/speak-to-shop-and-the-surge-of-voice-commerce/#:~:text=In%202022%2C%2048%25%20of%20consumers,human%20intent%20and%20digital%20execution., 2024
8 Vixenlabs, https://vixenlabs.co/voice-consumer-index-2022-retail-and-e-commerce-edition, 2022
Sometimes innovations in technology move so quickly, it can feel like you’re in a sci-fi novel. Like the shifting dunes of Arrakis, the ecommerce landscape is constantly changing because technology is a driving force behind how consumers buy.
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