July 10th, 2023
In 2023, AI has become the buzzword of the year. While many brands may be on the fence about whether to integrate AI into their day-to-day operations, the promise of increased workplace efficiency and customer satisfaction is too tempting to ignore.
As an Amazon seller, keeping up with new technology and ecommerce tools can provide you with an advantage over your competitors and can determine whether you sink or swim. Is AI right for your brand? Let's begin by breaking down the basics.
What is AI?
The idea of artificial intelligence (AI) has existed since the 1950s, but it wasn't until late 2022 that it started infiltrating businesses across various industries. AI technology has become increasingly popular for its ability to enhance workplace efficiency, transcribe data, and predict trends and patterns.
AI tools can automate manual tasks, research and analyze data, translate language, transform text into graphics, and so much more. Some examples of the most popular AI tools in 2023 include:
- ChatGPT
This language-processing tool can compose emails, essays, poetry, instructions, code, and more. - Dall-E 2
This AI image generator can create realistic images, graphics, and art from a verbal/written description. - Looka
This graphic design platform helps you create a custom logo, brand identity, and marketing material. - Podcastle
Podcastle creates, records, edits, and transcribes content to create professional-quality podcasts.
And the list goes on! These software algorithms are continually improving as they are exposed to more data. It’s likely that over the next few years, AI capabilities will transform commerce as we know it.
AI in the Workplace
AI technology is becoming a staple for many businesses. With the capability to simplify day-to-day operations to increase performance, these innovative tools are quickly gaining traction. So what exactly can AI do in 2023?
- Review employee performance
- Automate manual tasks
- Generate creative content
- Prevent fraud
- Personalize learning
- Recognize faces and emotions
- Manage inventory
The list continues to grow. AI not only has the ability to mimic human behavior, but it can also solve problems and make intelligent decisions on a broad range of complex topics.
AI Capabilities
It is crucial for Amazon sellers to keep up with their competition. The world's most popular platform thrives on efficiency and customer satisfaction, making AI technology a potential benefit for many brands.
These tools are quickly gaining popularity for their ability to do more and work smarter. Let's take a closer look at some of the AI capabilities that can benefit Amazon sellers
Product research
AI technology can predict consumer behavior to determine which products may be popular and profitable on Amazon.
Data analysis
AI is capable of performing data analysis to reduce errors and improve efficiency and accuracy.
Inventory management
AI can be used for product tracking, delivery time monitoring, product information, and more.
PPC optimization
Amazon Advertising AI can identify relevant keywords and streamline marketing efforts to reduce ACoS and increase profits.
Customer service
Using AI, you can automate customer service responses, ensuring consistency, responsiveness, and an excellent customer experience.
Market predictions
AI can analyze existing data to predict upcoming trends and patterns on Amazon.
Price optimization
AI can monitor competitor pricing, automatically adjust your prices accordingly, and potentially win you the Buy Box.
Listing optimization
With advanced data analysis capabilities, AI can search for errors, compare competitor listings, and even create or improve creative content.
AI Tools for Amazon Sellers
As the number of AI tools continues to grow, it can become challenging to determine where to start. Given the extensive number of choices, start by pinpointing the ones that offer specific advantages to Amazon sellers. Let’s do a quick overview of some of the most popular AI tools for Amazon brands:
AWS
Amazon Web Services (AWS) integrates AI and Machine Learning (ML) into seller tools that can help improve workflow and mitigate common challenges. These innovations are designed to benefit sellers in all product categories.
With over one hundred thousand customers, AWS is quickly gaining traction as a leading cloud computing platform in over 190 countries worldwide. AWS users can access data from a remote server and store and retrieve data from anywhere in the world.
ChatGPT
While we mentioned this earlier, ChatGPT’s popularity warrants a second glance for Amazon sellers. This AI-powered chatbot can answer nearly any question, conduct product research, message suppliers, respond to customer service inquiries, write web code, and more. As one of the most popular AI tools, many companies have experimented with this technology in late 2022-2023.
ChatGPT can generate basic bullet points, headings, and content for your Amazon listing. Although it can be a valuable tool, it is best utilized as a starting point for your listing rather than the final version. Since it is not specifically designed for Amazon marketing, it is recommended that you thoroughly review, update, and edit all content before uploading to Amazon.
Frequently.ai
This AI chatbot uses natural language processing (NLP) to analyze seller questions and provide relevant and comprehensive responses in real-time. One of the great things about Frequently.ai is that it informs you of its limitations and suggests when human intervention may be necessary.
Frequently.ai can be used by Amazon, eBay, and Etsy sellers and provides a dropdown list of support options. You can even select topics such as Brand Store, A+, and keyword inquiries.
Netomi
Netomi can be used to automate customer support. Amazon sellers are expected to respond to customer inquiries quickly and accurately, and this tool simplifies the process.
Netomi offers support across all of your sales channels and can respond in over 100 languages. It can automatically generate email, chat, messaging, and voice responses, using Natural Language Understanding (NLU) to resolve over 70% of customer queries without human intervention.
The Pros and Cons of Amazon AI
While many brands have integrated Amazon AI technology into their sales strategy, others are reluctant to follow suit. While the prospect of faster, better, smarter operations is certainly appealing, implementing AI into your daily operations is undoubtedly a departure from our conventional practices.
Unsure whether AI is an asset or a threat in modern-day marketing? Let's explore the pros and cons of AI.
Pros
Increase accuracy, reduce errors
Data-driven technology is consistent, factual, and precise. The information gathered by AI can be used to answer questions and provide accurate information on a wide range of topics. It can even fact-check and filter out misinformation.
Boost productivity
AI is capable of automating repetitive or labor-intensive tasks, freeing up valuable time to focus on more complex work. This gives skilled employees the ability to concentrate on creative or strategic operations that can boost efficiency and revenue.
Save money, boost profits
AI tools for Amazon sellers can predict market trends, enabling businesses to update their pricing, marketing efforts, and product listings to leverage this information to their advantage. It can even identify risks, errors, and deviations from Amazon policies that could cost money or cause account suspensions.
Improve the customer experience
AI can provide exceptional customer service around the clock by responding automatically to customer questions and feedback. This not only improves seller metrics but also cultivates customer satisfaction and loyalty while promoting repeat purchases and positive reviews.
Cons
Fewer authentic connections
82% of consumers choose to purchase from brands that align with their values. For many, this can be the difference between purchasing from you or your competitors. By relying on AI, you trade authentic connections with your customers for convenience. This could potentially result in losing loyal fans and followers.
Lack of original content
There's no doubt about it: the popularity of AI is booming. However, with everyone using this technology to create content and respond to customers, how can your brand retain its unique voice? Many brands are concerned that relying on AI can drown out your distinct identity and stunt creativity in exchange for convenience.
Inaccurate data
The accuracy of AI is directly linked to the quality of the data it is trained on. If the data is biased or inaccurate, the AI tools will not function as expected. Additionally, unlike human customer support, AI lacks the ability to detect nuances such as emotional reactions and preferences, which can lead to inappropriate responses and outputs.
Job loss
Over the past year, there has been a growing concern that AI could lead to a skyrocketing unemployment rate and permanently alter the workforce as we know it. Experts predict that by 2030, 75 million to 375 million workers will be forced to transition to new jobs and acquire new skills.
Dwindling privacy
AI can create ultra-precise profiles of employees and consumers. Since this technology is so adept at identifying patterns, it can predict a shopper’s likely future location by observing past behaviors. While AI may have its advantages, many believe that using this information to optimize your sales strategy can have irreversible ethical implications.
Amazon AI for Sellers: Best Practices
When considering the pros and cons of AI for Amazon FBA and FBM sellers, it's crucial to do your research and begin with small-scale implementation. Although AI is always evolving and growing, there are a few ways to experiment with these technologies to determine whether they’re right for you.
Review your data
Disorganized or poorly managed data can result in AI failure. Depending on your usage, this technology may require a substantial amount of data to operate effectively. Ensure that your data is correctly formatted, comprehensive, up-to-date, and properly stored before relying on AI to optimize your operations.Identify opportunities
Before implementing new AI-based strategies, it is crucial to have a well-defined plan. What are your objectives? What areas of your business need improvement? Once you have a clear understanding of your goals, explore your options and review feedback from other sellers who have used this technology.Start simple
Begin by using AI tools on one specific aspect of your business such as customer service or listing optimization. Consider this a testing period and examine the results carefully. Take note of the shortcomings and advantages of these tools and use this information to develop a plan for the future.Communicate
Before implementing a new AI strategy, communicate with your partners and employees to tackle any questions or concerns. Involve front-line workers and leaders in every facet of your business to gain a comprehensive understanding of the potential risks and rewards.
The Future of Amazon AI for Sellers
Amazon AI tools might be new, but it looks like they’re here to stay. AI technology has been consistently improving, enabling Amazon sellers to automate their operations and save valuable time and money. For more than two decades, Amazon has been exploring AI and ML capabilities and researching ways to leverage them to enhance the customer experience. So what’s next for Amazon AI?
Accessibility
Amazon is aiming to broaden its AWS customer base, which currently stands at 100,000, to include businesses of all sizes and industries worldwide.
Convenience
A wide variety of services will be available to businesses including image recognition, forecasting, targeted marketing strategies, and advanced search capabilities.
Affordability
Amazon will be offering cost-effective AI technology and affordable training models that empower businesses to deliver a better customer experience.
Speed
AI tools will be accessible to all sellers, with fast and easy implementation that aims to enhance business productivity within minutes. An AWS account will not be needed.
Security
AI tools will enhance their security features to identify and flag code that may be considered biased, inaccurate, or problematic.
Looking to boost productivity and take your Amazon brand to the next level? From AI to advertising, our experts are well-versed in all things Amazon. Our full-service team creates customized strategies to boost brand visibility, grow your business, and increase revenue. To learn more, schedule your free 30-minute consultation today!