Welcome to YesPlz.AI’s new monthly series, featuring frequently asked questions on topics related to fashion e-commerce, artificial intelligence, customer behavior, and more.
As a retail tech company, we’re excited to help businesses, both big and small, tackle some of the most complicated problems in e-commerce today.
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In December 2020’s series, we’re focusing on the relationship between COVID-19 and e-commerce. These are questions that we’ve answered on Quora, and felt were most relevant to businesses everywhere.
We hope you enjoy!
- How could COVID-19 change fashion and retail?
We’ve noticed significant changes in customer behavior due to COVID-19.
Customers are now:
- digitally sophisticated
- willing to explore new brands
- highly price-sensitive
We break down each of these categories, and how they can be opportunities for retailers here: COVID-19 and Fashion Artificial Intelligence: How the 2020 Customer Changed
Digitally sophisticated customers have high expectations from fashion e-commerce and aren’t willing to settle for subpar customer experiences. This has made the industry more competitive as a whole, as retailers need to compete to keep customers’ attention. In addition, these high customer expectations also affect the customer search and discovery experience, as many customers are unwilling to stay on e-commerce websites that don’t meet their search intentions. Retailers can mitigate this by using artificial intelligence to enhance the customer search experience and show more relevant products in search results.
Because customers are spending more time online, they are willing to explore new brands, which creates another opportunity for fashion e-commerce. Whether you’re a little-known retailer, or looking to showcase lesser-sold products, COVID-19 has created a more curious, exploratory customer — so now could be the perfect time to show new products to customers (so long as the products are relevant to search intentions).
Lastly, highly price-sensitive customers will result in retailers offering discounts or bundled packages to match customer needs. While price sensitivity may seem like a negative for retailers, there is now an opportunity to show customers relevant, discounted items. Once again, artificial intelligence can help retailers capture which products to show to customers.
By some estimates, the 2020 customer has jumped ahead 5 years in sophistication — and as a result, fashion retailers are also becoming more sophisticated.
See the answer here.
2. How is COVID-19 changing traditional retail and e-commerce?
Both customers and e-commerce companies are becoming more digitally sophisticated due to COVID-19.
You may wonder what COVID-19 has to do with digital sophistication, but think of it this way: customers are spending more time on their phones. Customers who may have preferred to shop in-store are now using online platforms because they don’t have any other choice. In addition, customers are spending more time online, which is leading to greater levels of digital sophistication.
You can learn more about these changing customer needs here: COVID-19 and Fashion Artificial Intelligence: How the 2020 Customer Changed and let me know what you think!
These customers are putting pressure on e-commerce to provide superior website experiences, with relevant product recommendations and easy-to-understand navigation. Therefore, e-commerce is also becoming more digitally sophisticated to keep up with customers’ new demands.
Furthermore, traditional retailers have moved online, creating more competition between e-commerce as new retailers are entering the online space. This competition has also forced e-commerce brands to differentiate themselves.
How are e-commerce brands differentiating themselves?
1) Through personalization — such as providing better product recommendations to customers browsing their websites
2) Through easy-to-understand products — such as using visual tools (YesPlz — Experience the Style Filter) to allow customers to show what styles they’re looking for, and receive immediate results
These changes are fascinating, and expected to continue to last beyond COVID-19. Hope this helps!
See the answer here.
3. How does COVID-19 impact shopping and e-commerce sales?
All of our research shows that e-commerce sales are on the rise, as customers are spending more time at home and making purchases directly to their homes. Customers are also shopping in categories that are more relevant to the home and wellness due to stay-at-home orders.
The stickiness of these changes is still being debated, but regardless, COVID-19 has pushed e-commerce brands to modernize to meet the changing needs of shoppers.
You can learn more about how retail has changed in the face of COVID here:
COVID-19 and Fashion Artificial Intelligence: How the 2020 Customer Changed
For example, shoppers are becoming more digitally engaged and sophisticated, leading to higher expectations from e-commerce in general. Shoppers expect to see relevant product recommendations, to engage with customer support in a few minutes, and to receive their products with a quick turnaround time.
How are these trends affecting e-commerce sales? Shoppers are more price sensitive, expecting deep discounts to accompany an enhanced online shopping experience.
Retailers can mitigate these expectations by personalizing the online shopping experience through artificial intelligence. By using personalization tools, retailers can show shoppers relevant, price-sensitive items that change based on user behavior and preferences. For example, if a shopper purchases a backpack, she may be interested in relevant add-on items (such as a notebook), but looking for discounts. Through AI personalization, retailers can show specific items to increase sales (especially of lesser sold items sitting in inventory).
To sum up:
1) COVID-19 has caused higher customer expectations, and therefore has created a more sophisticated shopping experience
2) Customers are expecting deep discounts on items due to COVID-19
3) Overall, e-commerce sales are on the rise
See the answer here.
Note: These questions were pulled from relevant Quora questions. Follow us on Medium to stay up-to-date on FAQs, retail tech trends, and more!
