The high Ecommerce season, like Black Friday and Christmas, is a critical time for online businesses. If you want to give your business the best chance of success, you need to make sure you’re taking advantage of every opportunity to increase sales. One way to do that is by using AI product recommendations.
The high season is around the corner, now is the time to start! Here’s a look at how AI product recommenders work and how they can help boost your sales during the holiday season.
Product Recommendations vs AI Product Recommendations
Product recommendations are nothing new; however, traditional methods of recommenders struggle during peak periods like the holidays. They tend to rely on coarse-grained data like purchase history and demographics, which can be inaccurate during times of increased activity.
On the other hand, AI product recommenders are powered by machine learning algorithms that can process large amounts of data quickly and accurately. This means they can adapt to changing patterns of customer behaviour in real time and make recommendations that are more likely to result in a sale.
How AI Product Recommendations Work
AI product recommenders work by constantly analysing data about customer purchases. This data is used to build models of customer preference that are then used to make recommendations about what products they might want to buy. The more data the recommender has, the more accurate its recommendations will be.
Grow sales with real-time product recommendations during high traffic
During peak periods like the holidays, there is a huge influx of traffic to eCommerce websites. This sudden surge can be difficult for traditional recommenders to handle because they take longer to process the data and may not be able to keep up with the changing patterns of customer purchases.
On the other hand, AI product recommenders can quickly adapt to these changes and provide accurate recommendations in real time. This is crucial for ensuring that customers find what they’re looking for on your website and are more likely to make a purchase.
How AI product recommendations look like on a webshop
Take Upsy Shopping Helper as an example of an AI product recommendation tool. Upsy uses artificial intelligence to learn about products and your customers’ purchasing habits. This information will help build recommendation algorithms which result in increasing sales.
Upsy has 2 main learning models: upselling and cross-selling.
Upselling is the act of recommending similar products to customers. Upsy’s learning model learns from your catalogues. Simply put, it is like your salesperson learns about what products you are selling in your store.
Upsy recommends similar products based on 2 elements. Upsy’s knowledge about your products and what product page visitors are watching. Upsy algorithm will recommend more expensive items to increase your sales. Upsy automatically recommends other similar products if your product is out of stock.
Cross-selling is the act of recommending complementary products. For example, your webshop had 10 purchases recently. Upsy learns what people buy together to determine which products should be recommended together with one another. The more purchases happen, the better Upsy gets at cross-selling.
Upsy’s recommendation models get trained multiple times a day to keep up with the latest data. Even if sale numbers spike quickly during the high season for E-commerce, Uspy can quickly react to the changes. It provides accurate recommendations to delight customers to buy more.
After customers pick up a product in their basket, the AI algorithm will automatically recommend complementary products.
Will AI product recommendation tools help increase sales in the high E-commerce season?
To answer this question, it is best to look at some numbers. Below is the sales breakdown of an online store in Finland. Those pictures are screenshots from the store dashboard.
– The first picture recorded sales during November 2021, Black Friday & Christmas season.
– The second picture recorded sales during the normal time.
During the high e-commerce season, Upsy helped generate over 70,000€ of sales during Black Friday month. This number is 3 times higher than normal sales numbers, for example, during Mar 2022. During Black Friday month, web traffic tends to increase; thus, installing Ai automation tools will help online stores convert more sales.
Conclusion
eCommerce high season is a critical time for webshop owners. To get your online store ready for a high-yield season, webshop owners should consider using AI product recommenders. AI product recommendations are able to handle large surges of traffic. It delivers sports on product recommendations in real-time.
Our team can help you get started with the right tools and advice to ensure that your shop is primed and ready to take advantage of peak shopping periods. If you want to see more data on how Upsy helps boost sales, check our website.