The online trading market continues to develop at an unabatedly rapid pace. As a result, it is becoming increasingly complex and the competitive pressure is growing. Successfully building a brand in this environment requires not only a good product, but also precise pricing on the basis of competitive information accurate to the day. And above all, a lot of know-how. Start-ups, but also traditional retailers, often lack online experience as well as the knowledge to exploit the most advanced technology tools. Even already established brands struggle again and again with so-called “pain points” in various areas such as logistics or the demanding marketing in the digital environment.
This is where specialists for the various segments can provide immediate advantages that mean the difference between success and loss. Today, algorithms, artificial intelligence and the ability to crystallise manageable information from Big Data determine market leadership or the slide into oblivion.
Offline retail is in crisis, online retail is growing exponentially and unchecked.
If one takes a close look at the turnover figures of online retail, it quickly becomes clear that the traditional concepts of stationary retail have lost their impact and are steadily losing market share to the eCommerce sector. For the year 2021, the turnover in the B2C eCommerce segment is about 86.7 billion euros, which means that the turnover increased by a whopping 19 percent within only one year.
Such increases in turnover illustrate the growth significance of eCommerce. Amazon’s sales figures alone confirm this. The big player from the United States generated a total turnover of around 470 billion US dollars in 2021.
Forecasts are primarily influenced by the three key factors of digitalisation, automation and customer behaviour. All three experienced increases due to the Corona pandemic and achieved remarkable revenue growth within the last two years. Although pandemic-related restrictions have now been largely withdrawn, both market researchers and retail experts expect shopping habits to remain online in the future and consumers to continue to turn to e-commerce. This is because they have now recognised in large numbers the advantages of shopping by mouse click and are creating a self-reinforcing effect through word-of-mouth.
Innovation for brand developers
Technical support through full-service eCommerce platforms that offer individual tools as integrated components are a good solution especially for start-ups. For many, online commerce in Germany is still uncharted territory. Commitment, little time and even less experience regularly lead to the silent disappearance of these newcomers. In the worst case, mistakes or ill-considered decisions even jeopardise the successful development of the brand as a whole.
However, not only newcomers to eCommerce benefit from such platforms, but also already established and successful brands can be made even more successful through highly specialised optimisation aids. In the end, what counts in highly competitive markets like the online world is the best possible EBIT (operationally achieved profit). Those who are already successful see this as the highest level of business management art.
The advantages of digital solutions are that they can be fully automated. In short: with clear dashboards for management information and intelligent algorithms for daily item positioning in fully automated mode, you can quickly become a “triple winner”.
Developing a brand or an online shop, being successful and remaining successful in the long term can only be achieved by keeping a controlled eye on all important key performance indicators (KPIs). This is how you manage a business efficiently. Individual KPIs are the benchmarks for adapting quickly to changing conditions when action is needed. In some markets, even several times a day, and that for hundreds or thousands of products.
If you use intelligent digital tools, you have almost unlimited opportunities for growth and optimisation. Aimondo is there to automatically compare all articles and offers of the competition with your own offers. Product, delivery time, reputation, price … all buyers orient themselves on these with values of >80% in each case. If the will is there and your own possibilities allow you to occupy one of the top three to five positions in the comparison of the search and price comparison engines or relative to the competing brands or shops, the turnover is calculable. This inevitably results in the achievable profit. Or a different positioning that corresponds to the goals of the management decision.
Aimondo collects all this data with the highest precision – millions of times a day. And calculates the data for the customers’ offer to their customers from the targets. Even offer texts and article descriptions can be automatically generated in “journalistic quality” from collected information.
Development has been underway since 2017 – building on the core artificial intelligence (AI) module created by Heinrich Müller (founder) more than five years earlier. Today, development takes place in Cyprus and Düsseldorf. Aimondo’s experience in Germany with this very advanced technology is mixed.
Business customers integrate Aimondo’s daily data services firmly into their processes, they have almost unassailable advantages over their competitors as a result. And this is purely as a result of highly complex software robotics . In other words, without having to invest massively in AI themselves, and thanks to the highly specialised nature of the team, they are at the cutting edge at all times. As a rule, they are highly satisfied with their decision and the success.
The disadvantage of this technological avant-garde has been that public authorities, for example, cannot follow the approach and lack the imagination that an AI eCommerce system originating in Düsseldorf is a world leader. For this reason, too, the central activity for internationalisation was started to be moved to Zurich even before operational cost recovery was achieved. The technology leadership has been further expanded for more than two years with Cyprus in a business-friendly IP jurisdiction and the planned stock exchange listing will probably be delegated to Scandinavia this year or next.
In this way, the strategic maximum is shared, the international reputation is strengthened and the brusqueness of German authorities as a framework condition is escaped.