In Prime Day offers, GenAI as a shopping assistant is expected to soar
Brace yourself, online shoppers! The annual Amazon Prime Day sale is here and it's expected to be taken over by AI like never before. What used to be a two-day shopping extravaganza, from July 8th to 11th, is now predicted to generate a whopping $23.8 billion in revenue across U.S. e-commerce retailers. Salesforce, this year, labels it as 'two Black Fridays,' pointing towards a potential growth of 28.4% YoY.
Salesforce, with its proficient e-commerce division, keeps an eye on online shopping extravaganzas like Black Friday, providing deep insights into the patterns of e-commerce. They analyze a massive amount of data from over a trillion visits to the U.S. retail websites, spanning across 18 different product categories.
This year, mobile will continue to be a powerful player, contributing 52.5% of total sales. However, a dazzling new star is rising in the e-commerce galaxy - generative AI.
During Prime Day, Salesforce predicts a mind-blowing 3,200% YoY increase in traffic coming from generative AI sources. Even though the figures pale in comparison to other marketing channels like email and paid search, their steadfast belief is that this trend will only deepen as more and more consumers realize the advantages of using AI for shopping.
They saw the first strong signs of such a surge in use of GenAI-powered chatbots and browsers during the 2024 holiday season, when traffic from these sources catapulted 1,300% YoY. Also, a survey of 5,000 U.S. consumers revealed that people are already using GenAI intensively for product research, recommendations, spotting deals, and creating shopping lists.
In terms of users' experience with GenAI, it's been tremendously positive. 92% claimed that it enhanced their purchase journey, whilst 87% said they're more likely to use AI for bulkier or more complex purchases.
Tech giants, like Google and OpenAI, not to be left behind, are leveraging this trend by integrating AI into shopping experiences- a testament to the sweeping changes AI is bringing to e-commerce.
So, this Prime Day, get ready for thunderous discounts, especially on apparel, and fulfill all your back-to-school shopping needs because it's going to be a rollercoaster of a sale, predicts Salesforce!