Amazon’s Dominance and Global Logistics Concerns Are Pushing Retailers to Use AI-tools to Improve Customer Experience, Drive Topline Revenues

Originally published in Business Wire

ASHBURN, Virginia – October 26, 2021 – Anodot, the autonomous business monitoring company, announced the results of an independent Researchscape survey of consumers and retailers. The survey reveals that as consumer spending is set to eclipse last year’s record numbers, retailers are under enormous pressure to deliver a seamless shopping experience amid rising concerns of supply chain disruptions that have and will impact inventory.

While retailers are bullish about sales this season with 85% of survey respondents expecting to see a year-over-year increase in sales, 42% of them remained worried about supply chain disruptions having a negative impact on product inventory and timely deliveries. 

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Nearly half of all respondents said they were concerned about logistics challenges after last year’s bottlenecks created limited inventories and shipping, which negatively impacted revenues. Those concerns have driven retailers to begin offering Black Friday sales promotions even earlier this season. 

The stakes are higher than ever this year and retailers must execute a seamless shopping experience to avoid losing customers and sales amidst an increasingly competitive environment. Today, consumers have a range of options when shopping and if small to medium-sized retailers can’t provide that seamless experience, they will not get a second chance. In fact, 82% of consumer respondents say that a negative experience with an online retailer is somewhat, very, or completely likely to turn them away from that merchant, and most likely into the arms of Amazon.

Last year, Amazon swallowed 51.2% of all online sales. Not surprisingly, 55% of consumers named Amazon as their retailer of choice. 48% of retailers surveyed named Amazon as their largest competitor. Amazon’s seemingly limitless inventory, easy-to-navigate website, recommendation engine, and one-click shopping have set the bar for the consumer shopping experience.   

“Based on spending projections, there are high hopes for this holiday season, but there are warning signs on the horizon,” said David Drai, CEO and founder, Anodot. “Supply chain disruptions have caused inventory issues that have shoppers nervous and retailers feeling unprepared. Providing a seamless experience is critical, and retailers are integrating AI to prevent the customer experience and supply chain issues that can frustrate shoppers.”

One of the key findings from the survey is that retailers have prioritized addressing the issues that consumers have identified as critical factors in their shopping experience. The survey highlights that retailers and consumers are aligned with the most important pieces of the shopping experience where AI can be of great help. The top four areas include: 

  • Websites that are easy to use 
  • 81% of online retailers 
  • 53% of consumers 
  • In-stock inventory 
  • 65% of online retailers 
  • 50% of consumers 
  • Competitive pricing 
  • 74% of online retailers 
  • 57% of consumers 
  • Fast check-out and payment processes
  • 67% of online retailers 
  • 46% of consumers 

Retailers have continued to make big investments in AI, and 81% of retailers surveyed said they expected to increase their AI budgets in 2021.

Beyond anomaly detection, merchants are using AI to drive topline revenues, with nearly one-third of respondents saying they believe AI can drive a 40% increase in revenues.  

“AI-based anomaly detection isn’t new to the business sphere, but traditionally has been relegated to technical performance,” Drai said. “As companies scale, they’re finding it imperative to automate the way they monitor the entire business, from customer experience to revenue and costs, so they can meet consumer expectations. This survey confirms the expanding role of AI in eCommerce today and the applications that are proving most valuable to the business.”

The survey shows online retailers are allocating their increased AI budgets to improve bottom-line results:

  • Fraud detection – 81% 
  • Improve customer retention – 55% 
  • Enable targeted campaigns – 22% 
  • Create dynamic pricing – 20% 
  • Identify when a server is down – 19% 
  • Marketing automation – 19% 
  • Anticipate sales trends in different geographies – 18% 

How the survey was fielded 

The research firm Researchscape conducted independent surveys of consumers and retailers to understand their concerns and expectations for the 2021 holiday season. The consumer-focused survey was conducted from September 10 to 13, 2021, and 1,057 U.S.-based respondents completed the entire survey. The online retailers’ survey was conducted from September 11 to 17, 2021 with 106 respondents. 

To access the full survey report, please go to Anodot 2021 eCommerce Outlook Report.

About Anodot 

Anodot’s Business Monitoring platform uses machine learning to constantly analyze and correlate every business parameter, providing real-time anomaly alerts and forecasts in their context. Fortune 500 companies, from digital business to telecom, trust Anodot’s patented technology to reduce time to detection and resolution for revenue-critical issues by as much as 80 percent. Anodot is headquartered in Silicon Valley and Israel, with sales offices worldwide. To learn more, visit and follow them on LinkedIn and Twitter. 

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