More than 60% of Amazon’s sales are made by independent sellers, most of whom run small to medium-sized businesses. Amazon sellers’ artificial intelligence can help smaller sellers get closer to larger brands.
But here’s the thing: You need to know how to use AI effectively.
In this guide, I will share my experiences from my work as a content manager for a large e-commerce marketplace. I will also share insights from Amazon sellers who are using AI across various business areas.
AI and the Amazon Marketplace
In 2021, I was a content manager for a large e-commerce marketplace with over three million customers.
Open AI hadn’t opened the doors yet with ChatGPT at that time. But let me tell you, AI was already a hot topic in the content field. Just a few years later, AI seems to have limitless potential in e-commerce.
Nowadays, Amazon sellers are consistently creating optimized product listings and providing automated integration for mundane tasks. This is without mentioning uses like customer service, product research, price optimization, marketing, and inventory management.
Simply put, AI has the potential to assist you in all areas of the Amazon marketplace.
How AI Has Helped Amazon Sellers
I spoke with six Amazon sellers who are using AI in various aspects of their businesses. Here’s what they said about how the technology is helping them succeed.
Better Insights into Trends
“As an Amazon seller, AI has been a game changer for me,” says Adam Hook, Head of Acquisition at Myrtle Beach Home Buyers.
“AI tools help me track market trends, optimize product listings, and dynamically adjust pricing strategies,” Hook explains. As a result, Hook has seen increased visibility for his products in search results.
The takeaway: Market trends show you what people want so you can provide the desired products. If you already have those products, you can prioritize adding resources to existing items to meet demand faster.
Market trend data also indicates which of your listings should be optimized first and how to optimize them.
When you optimize in-demand products for search, you typically gain better visibility in search results and product rankings on Amazon.
This makes it easier for the right customers to find the products they need from your store rather than a competitor’s store.
Optimizing Product Copy
“As an experienced Amazon seller, I found AI to be an invaluable tool for streamlining and enhancing my business,” says Rahul Paragi, founder of AIWritingHacks.com.
According to Paragi, AI is a game changer for optimizing Amazon product listings. Specifically, AI services can generate optimized titles, bullet points, and descriptions in seconds using machine learning.
Paragi says this saves time and ”I can convert page visits to sales at a higher rate.”
The takeaway: Optimizing written copy for search and conversions is a specialty area. Do I use AI to do this? Not when it comes to the actual writing part, because I love writing.
But what about Amazon sellers who have many moving parts in their businesses? I can see the appeal of using AI writing assistants – so no judgment from me.
However, I do use AI tools to help me with product text research. Regarding e-commerce, I use AI to assist me with keyword research. I also use it to help me find customer voice data.
Keywords help me optimize the text by utilizing the words and phrases people use to find the product I am specifically selling. Meanwhile, customer voice data (which is typically gathered from current customer reviews) helps ensure the listing resonates with potential customers.
Optimization
Product Image
“When people search for a product on Amazon, they get thousands of results,” says Freddy Linares, Director of Neurometrics. “Users pay attention first to images, but sellers don’t do that.”
This means that Amazon sellers might choose “good but random images.” Instead, Linares recommends using artificial intelligence to help you select the images that are most likely to sell better.
Image tools use artificial intelligence “computer vision to help sellers choose the image with the highest engagement,” Linares explains. Some tools also show “the best visual attention among available alternatives.”
Conclusion: Product images are extremely important in e-commerce. So much so that it doesn’t matter how well your product listings rank in Amazon search if the images aren’t optimized.
This is because choosing the wrong image or failing to upload images can prevent customers from buying from you.
Etsy data illustrates this point. The platform found that 90% of Etsy shoppers rated the quality of product images as the most important factor when making a purchase decision.
Long story short? Intensify your efforts and time in optimizing product text and images. Your goal should be to increase attention on the platform, then clicks, and ideally, conversions.
Reducing Stockouts
“As an Amazon seller, I’ve integrated artificial intelligence to optimize my product listings and forecast inventory needs,” says Gil Clark Jr., owner of G.H. Clark Contractors, Inc.
Clark also uses AI-powered tools to analyze customer reviews, enhance product descriptions, and predict sales trends.
Like Hook, Clark points to improved search rankings (i.e., better search visibility). He also reduces stockouts when using AI tools to predict and monitor customer orders.
Conclusion: You can run your Amazon store like a well-oiled machine when you always have the necessary inventory. When customers go to buy, they find the product they want and face no obstacles (like out-of-stock issues).
This means you will ensure sales instead of seeing the customer move to another seller on Amazon.
Improving Customer Satisfaction and Loyalty
“I extensively use artificial intelligence as a seller on Amazon to enhance multiple aspects of my business,” says Ben Selin, Marketing Manager at Rugby Bricks. Like Hook and Clark, Selin uses AI to optimize product pricing and inventory management.
Ben also uses AI for customer service on Amazon and product research. “I use chatbots to handle basic customer inquiries, saving time and enhancing the user experience,” Selin explains.
In terms of product research, Selin employs AI tools for keyword research and product trend analysis. After using AI, Selin noticed an improvement in customer satisfaction and loyalty rates overall.
Conclusion: Integrating AI into customer service areas can reduce response times, enhance follow-up care, and create a better purchasing experience.
Then, using AI in product research is a way to gain actionable insights on the products customers want and how they search for them.
You can then meet the demand and use search terms that make it easy for customers to find and purchase the products they need.
Competitor and Product Research
“We use artificial intelligence to research competitors and products for customers who sell on Amazon,” says Nat Milletek, owner and CEO of Clio Websites.
AI-powered research tools help Milletek and his team conduct “comprehensive analysis of Amazon products.” They can then see insights like “the most searched products, fastest-growing products, and high-potential products.”
Milletek also looks for the overall competition for products in categories related to his clients’ customers.
Milletek also uses AI to extract “product reviews from similar products.” This gives them insights into how to sell products successfully.
Conclusion:
Artificial intelligence can gather and organize large amounts of data faster than humans. This makes it a game-changer for competitor and product research.
Once you have the data, you can segment it, find key trends, and create a plan to improve your product offering.
But that’s not all. Remember that thing I mentioned earlier? Like Nat, you can use AI to extract product reviews and use them as voice of customer data.
Competitive Pricing
“I use AI-powered repricing software to ensure my prices stay competitive,” says Rahul Paragi.
“The algorithm adjusts prices based on competitor pricing, sales, inventory data, market trends, and set profit goals,” explains Paragi.
Paragi advises other sellers, saying, “Don’t be afraid to delegate optimization and efficiency tasks to AI. It has made my business significantly more profitable than I imagined.”
Jill Clark Jr. reflects Paragi’s point about using AI for competitive pricing on Amazon. Repricing tools are “game changers, automatically adjusting prices to stay competitive and maximize profits,” says Clark.
Conclusion: 9 out of 10 shoppers compare prices on Amazon. Sure, they may compare online product prices with retail prices. But they may also compare your prices with your competitor’s on Amazon to get the best deal.
Smart sellers on Amazon know they need to stay competitive in their pricing without eating into profit margins. That’s why using AI for dynamic pricing may be a daily use case for most Amazon sellers I interviewed for this guide.
Increasing Sales
Our interviewees reported increased sales directly from using AI in various areas of their Amazon businesses.
Pricing strategy, in particular, was a common area among all Amazon experts, as Selene noted sales increases due to optimized pricing. This “ensures I remain competitive without eating into profit margins,” says Selene.
In addition to pricing strategy, Selene benefits from “AI algorithms to better target PPC ads on Amazon, significantly increasing return on investment.”
Conclusion: By using AI to track and predict market trends and optimize product listings for increased visibility, sales can be increased. This is because market trends show you which products are in demand and what your competitors are doing.
Then, optimizing listings for in-demand products helps customers find what they need when searching through your store.
Optimized pricing is another area that helped all our interviewees increase sales. Using AI tools within an Amazon marketing and advertising strategy may also enhance advertising return on investment, leading to increased product sales.
Building an AI Strategy for Amazon
Let’s put what we’ve learned into practice by building an intelligent product strategy for Amazon. For this exercise, I chose the skincare category, and the specific product I’m strategizing is a Vitamin C moisturizer. Here’s where I’ll go from there.
Competitor Research
I’ll start by using AI to gather similar product listings from competitors. Once I have the data, I’ll analyze it, starting by looking for general trends (i.e., what’s working well and why).
I’ll also look for gaps (i.e., what other sellers are doing that I’m not). But more importantly, I’ll be looking for opportunities – what are other sellers not doing that I can do? And what can I do better?
After that, I’ll look for details about the top-rated competitors’ products by browsing Amazon. I’ll narrow my search to the top five best-performing product listings.
Then, I’ll go beyond AI data analysis and take a look at the listings myself for insights that AI might miss. This also helps me get a general idea of the product and the market.
Gathering
Customer Voice Data
After that, I will use AI tools to gather the best and worst customer reviews for the top five products. I am interested in this to see what pain points the product addresses and what the outcomes are, as well as where other products fail.
But more specifically, I want to see how customers describe all of this in their own words. I will also note any phrases or key terms used by customers, so I can reuse them in my product description.
Keyword Research
Now that I know what competitors are doing and what customers are saying, it’s time to start keyword research. Some people begin with keyword research, but I prefer to know what real people are saying and doing first.
From my experience, this approach helps uncover some hidden things that your competitors might overlook. It also increases your ability to build influence over customers.
To get started, I will use an AI tool to conduct keyword research. This will help me optimize my Amazon listing for search. I will look for a keyword that matches customer search intent, has a good volume, and low competition.
Let’s use “Daytime Vitamin C Cream” as a target term for this exercise. It’s not as specific as “Vitamin C Moisturizer.” However, the search intent is similar, and the competition for the keyword is lower.
There are also fewer supported results for “Daytime Vitamin C Cream” compared to “Vitamin C Moisturizer.” This means less competition for the top search results.
Optimizing Amazon Listing
As I mentioned, I do not use smart writing tools because I like to write honestly. However, I see significant benefits in using smart writing tools if you know what you are doing. So, for educational purposes, I joined the smart writing train.
Product Title
At this stage, I will use the smart writing tool to help me create a draft for the product listing and different title ideas. For the product title on Amazon, I want to prioritize a mix of the chosen keyword “Daytime Vitamin C Cream” to increase search visibility.
Additionally, I want something that speaks to pain points and desires of
Source: https://blog.hubspot.com/marketing/ai-for-amazon-sellers
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