Small businesses account for more than 90% of all U.S. businesses and contribute 43.5% of the nation's GDP, playing a vital role in consumer purchases and services. (1) Justin Floyd, Founder and CEO of RedCloud®, explains how the democratization of data, new AI tools and Open Commerce allow SMBs to trade freely, inventively, innovatively, and instantly across global supply chains and scale their businesses in the most efficient way possible.
LONDON, Oct. 7, 2024 /PRNewswire-PRWeb/ -- McKinsey reports that 65% of organizations in 2024 have made generative AI a part of their daily operations, nearly twice the percentage reported in 2023. (2) Large enterprises have been in the AI game for a while, taking advantage of the massive amounts of data available to better understand their customers and dominate the eCommerce industry. Meanwhile, small and medium-sized businesses (SMBs) struggle with disorganized data and a lack of resources. Justin Floyd, Founder and CEO of RedCloud's Intelligent Open Commerce Platform™, explains, "The Open Commerce initiative is about breaking down barriers and enabling companies to trade efficiently across the internet. The vast data infrastructure built over the last 20 years is finally becoming accessible to everyone. And AI is the first natural way in which all of that data can now serve small businesses."
Customer Retention and Fraud Prevention
The Global Artificial Intelligence in the eCommerce market is projected to reach $25.1 billion by 2032, with a compound annual growth rate (CAGR) of 15.1%, according to a report from Dimension Market Research. Businesses are gaining deeper insights into customer behavior, enabling personalized advertising, and enhancing content production with generative AI technology. (3) Omnichannel retargeting, predictive analytics for inventory management, and the personalization of marketing strategies decidedly improve customer retention and help reach and exceed sales objectives. (4)
Machine Learning (ML) is playing a more prominent role in financial fraud detection. Traditional systems are less effective at identifying new fraud patterns and often result in false positives. ML models learn from past data, adapt to new fraud techniques, and analyze vast datasets to detect subtle behavioral changes. (5) AI is proving to be invaluable in reducing non-scan incidents, which cost retailers $45 billion annually. By utilizing computer vision and AI algorithms, retailers can monitor video feeds to catch unscanned items, notify checkout staff in real time, and help detect fraud and errors during checkout. (6)
The Democratization of Data
When the internet first started, it was an open system that gradually became closed, building up barriers nearly impossible to scale. Global supply chain businesses can't afford those kinds of walls between them. Open Commerce, the second generation of eCommerce, changes everything.
The amount of consumer data collected from Meta and Google over the last 25 years is now publicly available in business environments. Generative AI is transforming eCommerce by supercharging the customer experience. It supports hyper-personalized shopping, emotional intelligence integration, and enhanced interactions, increasing sales and consumer satisfaction.
Generative AI enables smart inventory management by forecasting demand and automating restocking. Dynamic pricing adjusts product price tags based on market conditions. AI tools like 24/7 chatbots, virtual try-ons, and virtual assistants upgrade customer service while advanced analytical intelligence forecasts sales and segments customers for more effective marketing optimization. (7)
AI and Machine Learning Promote Open Commerce
AI is revolutionizing Open Commerce for small and medium-sized businesses (SMBs), providing cutting-edge technology to optimize operations and decision-making. With AI-driven data analytics, businesses can identify market opportunities based on real-time transaction data.
AI-powered insights enhance competitiveness by enabling SMBs to make informed decisions about product offerings and marketing strategies. AI tools also coordinate targeted promotions, helping businesses increase visibility and engage customers effectively.
As Floyd states, "Small businesses are the backbone of the global economy. Open Commerce enables them to trade in exactly the same way and on the same terms as the big players through the power of Artificial Intelligence and Machine Learning. Together, they provide valuable insights into product vulnerabilities and opportunities."
About RedCloud
Based in London, UK, RedCloud Technology was founded in 2012 and stands as a "Rebel Alliance," leading a bold, second-generation e-commerce transformation. Rejecting the high fees of tech giants, RedCloud leverages AI-enabled supply chain solutions to empower smaller businesses to compete with major corporations. Their democratized, platform provides financial visibility, offering a level playing field that breaks free from the dominance of conventional marketplaces. RedCloud embodies a fairer, more inclusive digital commerce future where Davids can stand tall against Goliaths. Visit https://redcloudtechnology.com/.
References:
1. Ferguson, Stephanie , et al. "Small Business Data Center." http://www.uschamber.com, 25 May 2023, http://www.uschamber.com/small-business/small-business-data-center. Accessed 27 Sept. 2024.
2. Mamnani, Parag. "Council Post: Get Your Edge with AI: Three Tips for e-Commerce Smbs." Forbes, Forbes Magazine, 15 Aug. 2024, forbes.com/councils/forbestechcouncil/2024/08/15/get-your-edge-with-ai-three-tips-for-e-commerce-smbs/.
3. "Artificial Intelligence in E-Commerce Market Size, Share, Trends and Forecast 2032." Dimensionmarketresearch.com, 2023, dimensionmarketresearch.com/report/artificial-intelligence-in-e-commerce-market/. Accessed 27 Sept. 2024.
4. "Artificial Intelligence Influence on Global E-Commerce Market Expected to Skyrocket to $25 Billion by 2032 ." GlobeNewswire News Room, FN Media Group LLC, 22 Aug. 2024, globenewswire.com/news-release/2024/08/22/2934218/0/en/Artificial-Intelligence-Influence-on-Global-E-Commerce-Market-Expected-to-Skyrocket-to-25-Billion-By-2032.html.
5. Srivastava, Sudeep. "An Analysis on Financial Fraud Detection Using Machine Learning." Appinventiv, Appinventiv, 5 Sept. 2024, appinventiv.com/blog/role-of-machine-learning-in-financial-fraud-detection/.
6. Srivastava, Sudeep. "How AI in Retail Is Revolutionizing the Shopping Experiences." Appinventiv, 10 Sept. 2024, appinventiv.com/blog/impact-of-ai-in-retail/.
7. Timonera, Kathryn. "Ai in E-Commerce: Navigating Benefits, Challenges, and Future Trends." eWEEK, 1 Aug. 2024, eweek.com/artificial-intelligence/ai-in-ecommerce/.
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SOURCE RedCloud
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