Beyond AI, Here’s Why Brands Need Humanity in Their E-Commerce Strategy

AI continues to pique our interest, especially in e-commerce. While AI increases efficiency, it’s just one piece of the puzzle to successfully selling products online. I recently had the opportunity to speak with Jorrit Steinz, CEO and founder of ChannelEngine, a global platform that leverages automation to help businesses sell online in over 950 markets. Here’s why e-commerce companies need to cultivate human connections before they can use AI.

Holistic high quality increases profits

To increase sales, brands can be tempted to underprice products. Jorrit recommends setting a fair, not cheap, price and delivering “a quality product, not just a brand, but a unique proposition.” Shoppers value excellence—70% of consumers will switch brands for a better product experience. Jorrit advises companies to “keep being creative, to really add value, because that’s what the reviews reflect.” Amazon’s generative AI in user reviews only works when people feel connected to a unique product.

High-quality products are created in a positive company ecosystem. Jorrit notes: “We believe in people working together to create something amazing. If you don’t see their eyes light up when they talk about (their work)

it doesn’t work.” Gallup’s research confirms it—companies with engaged workforces are 21% more profitable. Building strong employee relationships leads to better products.

Intuitive e-commerce user journeys increase sales

Consumers choose to shop online for convenience. However, according to the Baymard Institute, 70% of online shoppers will abandon their shopping carts. In addition to excessive additional costs, clunky experiences are among the top reasons people abandon their purchases (Figure 1).

Brands should create a strategic mix of markets to capture a share of the $6.9 trillion in global e-commerce sales. Jorrit says, “There’s a big misconception that Amazon is the only place to be successful. Yes, Amazon can be incredibly successful if you do it right. There are also 600 million products to compete with. If you go into another market, maybe there are 10 million products. It’s easier to win there.” Online retailers need to be intentional about their product descriptions. In most cases, “a lot of search terms aren’t even associated with the brand,” Jorrit notes. To reach potential customers, retailers need to be present in multiple markets at the same time. This generates 190% more revenue than selling in a single channel. Identifying how people find your products determines the best channels to connect with potential customers.

Authentic online experiences build trust

Whether it’s marketplaces like TikTok, Zalando or AliExpress, companies want their target audience to access, trust and buy products. Jorrit predicts that companies will reclaim retail ownership: “There will be further changes for brands to control the entire retail chain, from content to delivery to asset pricing.” Brands need to make sure their descriptions, images and specifications are accurate. Jorrit says: “I’ve heard from a lot of customers that their retailers are posting attributes like battery life (for electronics) that are incorrect. Then they get complaints about their products.” Building trust is key, as 87% of consumers rate an ethical and trusted reputation as a factor in making a purchase, according to a study by McKinsey. Whether you’re communicating product specifications, inventory or shipping times, focus on consistent, honest communication to strengthen customer relationships.

Understanding consumer behavior allows for rapid change

When asked what metrics companies aren’t tracking that they should, Jorrit said, “I see brands lumping everything together. This is our sales to market, and this is our returns rate, so it’s not cost-effective.” But it’s usually just a few items that are either poor quality or misrepresented… If you’re not analyzing and optimizing returns, you’re losing a lot of revenue.” Making these small adjustments by understanding the connection between product and customer allows brands to self-correct and improve sales.

The ease of setting up an e-commerce store has made the playing field dynamic. Jorrit notes that “it’s a lot easier now (than it was 10 years ago) for an American company to start selling in Europe and Asia,” which means “there’s so much competition out there. You see it all over the world.” But global sales are still an untapped market. According to CapitalOne’s Shopping Research Report, cross-border e-commerce accounted for just 22% of all e-commerce sales in 2023 and is expected to grow 219% faster than all e-commerce by 2028. Companies need to be able to quickly identify and adapt to new regions to capture global consumer interest.

In e-commerce, making human connections is the priority in the intangible world of online marketplaces. AI is beneficial, but it has its limitations. Jorrit believes that “automation and AI are the name of the game. Because then we can spend our time doing more creative thinking and collaboration.” Creating high-quality products, seamless user experiences, and creating real connection points create the foundation for success. Only then, says Jorrit, can e-commerce retailers “be a big fish in many ponds.”