How You Can Leverage AI to Bolster Your Dropshipping Business
There is this general idea that dropshipping does not need so much financial involvement because you don’t have to stock products, get a warehouse, employ so many hands, or take care of the shipping responsibilities, but you must make a profit, and you must endeavor to remain very relevant in the face of the stiff competition. You need to have a solid client base; you need to know your customers’ likes and dislikes; you can even go to the length of accessing product review sites to understand what your customers and the competition do.
Every business now listens to the voice of the customer; this calls for leveraging sentiment analysis to have veritable insights into the actual feelings of customers. You can only do a lot of these things effectively with artificial intelligence (AI).
Dropshipping has a lot of challenges such as finding the right supplier, building a solid client base, offering products that are out of stock, meeting shipping deadlines, tracking products, product rejection, and ensuring customer satisfaction. While some of these challenges go beyond the scope of what the drop shipper does, organizations like HyperSKU are trying to ensure a market revolution by venturing into areas that are not specifically for drop shippers.
For you to compete favorably with organizations like HyperSKU, you need to work with data, and that’s why you must think of integrating AI into your dropshipping business.
The AI technology
The world has come to grasp the fact that human intelligence does not suffice in carrying out all the functions that we require to transact our daily activities and hence, we need to input machines that can help by mimicking human intelligence. The machine has been discovered to have the ability to learn rules, it can remember information, you can deploy the machine to apply basic principles to that information, AI can arrive at conclusions and carry out corrections when it deems them necessary.
These are the traits any business needs to succeed in the overly competitive world we have found ourselves in, and dropshipping is not left out. That is what AI technology can do for you.
The following are some ways we can deploy AI into dropshipping:
The bulk of what customers purchase today is based on preference, and that does not seem to fade any time soon. Getting into the “head” of your customer has become overly important for the survival of any business.
That’s the angle and role personalization has come to play, and it will continue playing for a long time to come. It’s not rocket science; there is a bond of trust you build with anybody who offers you what you actually need.
It’s just the same way, you will want to trust anyone that will sell anything you need at any time in point. AI can help you to a very large extent to personalize messages you send to both potential and existing customers.
Just like any other business, dropshipping thrives on data; you need to analyze the data your customers generate to understand their preferences and recommend similar products or some other things that will interest them; AI is the key you need to unlock this world of surprises. Just think of Amazon’s recommendations; Apple has also taken this to a notch with its famous Siri.
How do you think you can hook your customers without personalizing recommendations either on your landing page or website? How can you do this to the teeming customers you must have to make your profit and remain relevant in the very competitive drop shipping industry?
The dropshipping business just like any other requires that you know your customers on a one-to-one basis; you must identify and predict each customer’s behavior and preferences; this enables you to segment and aggregate customers into groups. A data analyst can go to some lengths, but AI will completely remove the human error factor.
2. Fine-tuning your email marketing
What better option do you have for email marketing than AI? Dropshipping thrives on email; emails are the channel of communication from the customer, to the drop shipper and finally to the supplier.
Without emails, dropshipping is dead on arrival. Now, how many emails do you intend to send in a day? Will they run into their hundreds? Sure!
Unless you want your dropshipping business to handle just a few orders in a day; but, is that what you have set out to do? Since your client base determines your profit, you can’t do without email marketing.
With AI, you can easily segment your email list, which ordinarily will be difficult if you depend on human labor. The reason for this is that you need to access as much data as it’s possible to enhance your relevance in the dropshipping business.
By segmenting your list, you have better chances of personalizing your email messages. AI quite unlike human intelligence can easily segment your customers based on their demographics such as age, gender, browsing behavior, previous orders, budget, and make insightful recommendations.
The emails you send to them will reflect these demographic indices. On this basis, you can come up with appropriate CTAs you can use for your A/B testing.
When you put all these factors together, your dropshipping business is set to flourish; integrating AI enhances highly segmented and highly personalized email messages.
Why do you need a chatbot for a successful dropshipping business? Like any other person, that should be the question that pops up in your mind. Time zones differ; you can’t, and any of your employees cannot work 24/7.
You may look at it as an added financial constraint, but having a chatbot to deal with real-time requests puts you head and shoulder above the competition. What happens when a customer wants to reach across, and you are not there?
The only other option is to try out another source. Will the customer come back to you based on the experience? You don’t need to have a waiting time; I’ll get back to you soon has sent many customers away; even when they are brand ambassadors, there is a level to how long you can keep them at bay.
You also have to think about your potential customers who are trying to reach you the first time. Without a 24/7 service, you can’t satisfy customers who want to resolve their needs in real-time. AI affords that.
Setting up a business is to make a profit; the best way to go about this is to leverage emerging technologies that will better position you. The dropshipping business is very competitive and AI will be of immense benefit for any drop shipper that deploys the technology.
You need AI for your email marketing, real-time communication, and most importantly, for personalizing your messages.