Masterclass With COO at E-commerce Platform Flowwow Vera Modenova
Modenova shares her views on how e-commerce startups can leverage AI to grow their business.
StartupScene’s op-ed series ‘Masterclass’ invites some of the region’s most dynamic entrepreneurs and experts to divulge their secrets, dispense their knowledge, and share their experiences with the MENA region’s ever-growing startup ecosystem. Whether they’re written by old guards or trailblazers, these masterclasses have been created to illuminate the path for aspiring entrepreneurs.
This week’s Masterclass contributor is Vera Modenova, COO at Flowwow, a global e-commerce platform. Modenova shares her views on how e-commerce startups can leverage AI to grow their business.
How e-commerce startups can leverage AI
The e-commerce landscape is experiencing phenomenal growth. According to a recent report by Statista, global retail e-commerce sales reached an estimated $5.8 trillion in 2023, and are projected to reach $6.3 trillion in 2024. This surge in online shopping presents a lucrative opportunity for startups, but also intensifies competition. In this dynamic environment, staying ahead of the curve requires embracing innovative technologies.
AI offers a multitude of benefits for e-commerce startups, empowering them to personalise the customer journey, optimise operations and ultimately drive business growth. In this article I’ll explore the various ways e-commerce startups can leverage AI to achieve these goals.
E-commerce startups face a multitude of challenges, from limited brand awareness to establishing customer trust and loyalty. AI can be a game-changer, providing the tools and insights necessary to overcome these hurdles and fuel profitable growth through e-commerce.
Personalised Shopping Experience
Today's online shoppers expect a personalised experience. According to a recent study, 91% of online customers are more likely to choose a brand that personalised their journey. Moreover, 98% of e-commerce website owners say that personalisation improves their relationships with customers.
AI excels at analysing vast amounts of customer data, including browsing behaviour, purchase history and demographics, to understand individual preferences. This allows e-commerce startups to create personalised product recommendations, targeted marketing campaigns and dynamic content that resonates with each customer. This level of personalisation fosters a more engaging shopping experience, leading to increased customer satisfaction and loyalty, just like Amazon's recommendation engine.
At Flowwow, we’re developing an AI tool that curates personalised gift collections, aiming to double decision-making speed and sales conversion.
Automate Digital Processes
AI-powered chatbots can significantly improve customer service, especially during peak seasons. These virtual assistants can provide 24/7 support, answer frequently asked questions and resolve basic issues, freeing up human customer service representatives for more complex inquiries. This translates to faster resolution times and improved customer satisfaction.
Flowwow, with our experience managing up to 100,000 daily orders and 400 new sellers joining the platform each week, believes a thought-through interface can minimise the need for AI chatbots to handle routine inquiries. Flowwow's customer support team plays a dual role, acting as both customer service representatives and contributors to product improvement. By identifying user pain points and suggesting user-friendly changes, the team helps create a UI that effectively addresses basic user queries.
Human touch and empathy are crucial for complex customer issues. AI chatbots are still under development and may struggle with nuanced inquiries or emotional situations. Flowwow emphasises the importance of human-AI collaboration: leveraging AI for routine tasks while ensuring human support is available for sensitive issues or complex problems. Consider Netflix’s approach: their support agents are encouraged to infuse a personal, human touch into interactions with customers.
While AI-powered chatbots offer efficiency in large-scale customer support, they may not be ideal for all companies. Startups with smaller customer bases may find it more cost-effective to invest in human support or product improvements that minimise the need for AI.
Create ChatGPT Descriptions for the Product Cards
Creating high-quality product descriptions is crucial for e-commerce success, but it can be a significant time investment for sellers. AI-powered tools can streamline this process by generating unique and informative descriptions in seconds.
Sellers simply provide key product details, and ChatGPT crafts compelling content tailored to the specific item. This automation frees up valuable time and resources, allowing sellers to focus on core business functions while ensuring their products are presented effectively to potential customers.
While AI offers significant time savings, it's important to exercise caution. A common pitfall is neglecting to proofread AI-generated content. There have been instances, particularly on Amazon, where sellers have relied solely on AI-generated descriptions without proper review. As a result, these sellers have published inaccurate or nonsensical descriptions, potentially harming their reputation.
Potential Challenges and Considerations
While AI offers immense potential, startups should be mindful of the following considerations:
Data Privacy: Building effective AI models requires large datasets. Startups must be transparent with customers about data collection practices and prioritise user privacy. Consider building your own AI tools in-house to avoid sharing sensitive data with third parties.
Balance Between Human Touch and AI: There are areas where human interaction remains irreplaceable. For instance, personalised communication with customers during the early stages of growth is crucial for gathering valuable insights and building trust. Startups should leverage AI for tasks that are repetitive or data-driven, while reserving human interaction for areas requiring empathy and complex problem-solving.
Cost and Expertise: Implementing AI solutions requires an initial investment in technology and skilled specialists. Startups can navigate this by prioritising functionalities with the highest impact and gradually expanding AI integration as their resources grow.
AI Limitations: It's important to constantly monitor AI outputs and have failover mechanisms in place for critical processes, as AI is still under development.
By leveraging AI strategically, e-commerce startups can significantly improve operational efficiency, enhance customer experience, and gain a competitive edge. Investing in AI technologies is not just a trend; it's a necessity for long-term success in the ever-evolving e-commerce landscape. But it’s crucial to remember, AI is an additional automation tool, not a full-fledged replacement for humans.
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