The implementation of artificial intelligence in online market research and sales strategies will be one of the key differentiators that will define the success of e-commerce in Mexico in the coming year. While it may not be surprising that the Mexican e-commerce market is showing signs of even greater growth in 2024 compared to 2023, what is vitally important for sellers is the news that increased competition, coupled with the arrival of AI-powered tools can offer some companies significant advantages over others in terms of market and competitive analysis, time to market and, ultimately, sales and return on investment.
Sellesta, an e-commerce advertising agency that uses artificial intelligence to help businesses increase sales in online marketplaces and stores, announced market research on Amazon and Mercado Libre to provide real-time insights and information on competition to Mexican retailers.
“While there are several ways an e-commerce seller can increase their competitiveness in 2024, the growing accessibility of AI-powered products means that adopting an intelligent market research tool is now a game changer important for companies.” for established brands as new players,” comments Kirill Nepomnyashchiy, country manager of Sellesta in Latin America.
AI-powered tools like market research give experienced marketers, established brands, and new sellers the ability to conduct comprehensive market research, find new products to launch, analyze specific categories/niches, check price segmentation, and even price details of sellers/brands of a given product. Let’s say a marketer wants to take advantage of TikTok’s latest trend for Y2K-style makeup. Before deciding whether to order lip gloss, eyeshadow or foundation, the seller can now analyze sales at a granular level, across categories and subcategories, identify best-selling products by region and demographic, and examine the level of competition on a global scale. a matter of minutes, not hours, days or weeks.
“Our research has shown that although 91.4% of Brazilian e-commerce managers face online competition from at least 10 other brands, 71.4% of them take more than 24 hours to adjust the price of a product, while more than half of Mexicans (57%) would require a month or more.”
Seeking information on how to help e-commerce sellers in Latin America’s two largest economies use the latest technologies to boost sales, Sellesta conducted research last year on the state of e-commerce in Mexico. It emerged that only 19.9% of Mexican e-commerce managers have daily access to information on market trends and only 12.9% check competitors’ online offers (descriptions, prices, promotions, etc.) on a daily basis.
Although e-commerce appears to continue to be a strong growth sector in Mexico, the survey results show that market research is often an expensive and time-consuming process. “Finding the right niches, whether it’s which products are most in demand or which categories are most popular, was a manual process that required daily attention,” Kirril explains.
But tools like Sellesta Market Research can now do almost all the heavy lifting, essentially simplifying thousands of hours of repetitive research, retrieval, and cross-referencing to help experienced and new sellers find high-growth niches in two of the world’s most profitable markets. Mexico, Mercado Livre and Amazon. These are robots that update information every day with 90% accuracy. By presenting the seller with a category tree that reflects the layout of Amazon or Mercado Libre, this analytics tool makes it easier for users to find the categories with the highest revenue and lowest competitive load.
Kirril gives the example of a global brand that is thinking of entering a new segment or launching an offering at a completely new price point.
“With its new AI-powered market research tool, marketers and financial analysts can calculate not only potential sales and market share, but also market share and growth, using local data in real time”. “This analysis significantly reduces the risk of market failures and unsold stocks, while revealing new business opportunities that would otherwise remain unexplored,” she said.
With the e-commerce landscape in Latin America set to continue growing in 2024, integrating AI-powered market research is critical for businesses seeking a competitive advantage. Sellesta’s research highlights the challenges faced by e-commerce managers, highlighting inefficiencies in traditional market analysis. However, recently launched tools like Sellesta Market Research offer a transformative solution, offering quick and cost-effective insights into high-growth niches and competitive landscapes on platforms like Mercado Libre and Amazon. In the dynamic world of e-commerce, where timely decisions are key, the rapid adoption of this new generation of AI-powered tools is one of the most promising ways to ensure success and profitability this year.