The Future of Ecommerce by Connie Chan | Summary and Q&A

TL;DR

Artificial intelligence and social media are transforming commerce, from search-based to discovery-based shopping, offering personalized product recommendations and interactive shopping experiences.

Key Insights

• 🛍️ Discovery-based shopping offers consumers the joy of shopping discovery while providing personalized and targeted recommendations.
• 🫒 Influencers, social media, and live streaming are driving discovery-based shopping experiences.
• ☠️ Personalized information, social proof, and interactive features increase conversion rates in online shopping.
• 🛍️ Technology, such as augmented reality and body scan, replicates offline shopping benefits online.
• 🏍️ Combining the benefits of offline and online shopping creates a virtuous cycle of product discovery.
• ✊ Retailers can reduce returns and excess inventory through improved product discovery and AI-powered software.
• 🧑‍💻 Sustainable practices, such as tech-enabled resale programs, are gaining momentum in e-commerce.

Transcript

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Questions & Answers

Q: How is discovery-based shopping transforming the online commerce experience?

Discovery-based shopping leverages AI and data to recommend personalized products, combining the convenience of online shopping with the joy of offline shopping discovery. It offers a more engaging and interactive shopping experience driven by influencers, social media, and gamified feeds.

Q: What is the role of social proof in improving conversion rates?

Social proof plays a crucial role in improving conversion rates by providing validation and confidence to shoppers. By allowing consumers to get feedback from friends and family or participate in group chats, retailers can increase trust and encourage purchases.

Q: How can retailers replicate the benefits of offline shopping for online customers?

Retailers can replicate the benefits of offline shopping by incorporating features such as augmented reality dressing rooms, body scan technology for better fits, and online sales representatives who can answer questions and provide relevant information. These personalized experiences instill confidence in online purchases.

Q: How can retailers reduce returns and excess inventory?

By improving product discovery and providing personalized information, retailers can reduce returns and excess inventory. Access to the right information, including product variety and details, decreases wasteful buying behavior. AI-powered software can also help predict returns and manage excess inventory more efficiently.

Summary

This video discusses the shift from search-based online commerce to discovery-based shopping in the Western world. It explains how artificial intelligence and data collection are being used to recommend products based on consumer preferences. The video also explores the potential benefits of discovery-based shopping, such as increased conversions and fewer returns. It emphasizes the importance of combining the joy of offline shopping with the vast options of online shopping to create a new generation of successful marketplace winners.

Questions & Answers

Q: What is search-based online commerce?

Search-based online commerce refers to the process where consumers search for specific products using keywords or phrases, add them to their carts, and check out. It is known for its efficiency in helping buyers find and purchase exactly what they are looking for quickly.

Q: Why is search-based commerce dominant in the market?

Search-based commerce has been dominant because it allows consumers to find and buy exactly what they want efficiently. It offers convenience and ensures that shoppers can quickly locate and purchase their desired items.

Q: What is the drawback of search-based commerce?

The drawback of search-based commerce is that it deprives consumers of the delightful aspect of shopping, which is discovery. When shoppers only search for specific items, they miss out on the joy of stumbling upon new and exciting products.

Q: How are retailers and brands using artificial intelligence?

Retailers and brands are utilizing artificial intelligence to collect data from consumers' purchase histories and the preferences of others. By analyzing this data, they can provide personalized product recommendations that align with shoppers' tastes, preferences, and buying behavior.

Q: What is the future of commerce?

The future of commerce lies in the evolution of product discovery and the combination of offline shopping's joyful discovery with online shopping's infinite options. The next generation of successful marketplaces will be those that successfully blend both aspects, offering consumers the best of both worlds.

Q: How does discovery-based shopping work?

Discovery-based shopping leverages various visual mediums, such as photos, short videos, and live stream videos. Platforms like TIMU provide personalized and gamified feeds of products and shopping deals. Social media platforms like TikTok and YouTube have popularized unboxing videos and testimonials, which contribute to discovery-based shopping.

Q: How do influencers and social media play a role in discovery-based shopping?

Influencers and social media platforms are vital in driving discovery-based shopping. Facebook groups and group chats, for instance, allow shoppers to receive feedback not only from sellers but also from other buyers who can influence their purchasing behavior and choices.

Q: How can brands make the shopping experience fun again?

Brands can make the shopping experience enjoyable again by embracing discovery-based shopping. By utilizing influencers, social media, and personalized feeds, brands can create an engaging and interactive shopping experience that appeals to consumers' desire for excitement and novelty.

Q: How can retailers offload excess inventory?

Retailers can increase the chances of selling excess inventory by presenting it as limited-time sales or offering special coupons. By marketing these items effectively to potential customers, retailers can increase the visibility and desirability of unsold products.

Q: What benefits can personalized information provide for online purchases?

Personalized information about online purchases can significantly impact conversion rates. By incorporating social proof, such as getting validation from friends and family or using augmented reality dressing rooms, consumers can make more informed decisions and feel more confident in their purchases.

Q: How can retailers replicate offline shopping benefits online?

Retailers can replicate benefits from offline shopping, such as using fitting rooms or interacting with sales representatives, through technology. This includes training online sales reps to answer questions and provide relevant information via private group chats or customer chat portals. Additionally, live shopping offers video demonstrations, tutorials, and giveaways to increase shoppers' confidence in their purchases.

Takeaways

The future of commerce lies in the combination of offline and online shopping experiences. By embracing discovery-based shopping, retailers can offer consumers a more engaging and personalized experience. This not only makes shopping fun again but also increases conversions and reduces the rate of product returns. Leveraging technologies such as AI, social proof, and interactive features, companies can improve product discovery, provide relevant information, and better predict and manage inventory. Additionally, the growing focus on sustainable practices and resale programs further enhances the e-commerce experience while reducing waste and environmental impact.

Summary & Key Takeaways

• Search-based online commerce dominates the western world, allowing consumers to quickly find and purchase desired products but limiting the joy of shopping discovery.

• Brands are now using AI and data from purchase histories to recommend personalized products with discounts, combining the convenience of online shopping with the delight of offline shopping.

• Discovery-based shopping is driven by influencers, social media, unboxing videos, and testimonials, creating a fun and interactive shopping experience for consumers while helping brands offload excess inventory.