Artificial Intelligence is going to disrupt and rethink all industries and dramatically change our everyday approach to business and daily routines. If we think about the key takeaways from the last edition of CES in Las Vegas and the most awarded essays on AI like AI superpowers we reviewed here: business AI is the current top priority for many players and e-commerce is going to play a major role in upgrading the customer journey to a more tailor made approach driven by AI insights and implementations. In this scenario Seller Snap, a company based in North Carolina, US is delivering AI-powered solutions that bring immediate tools for achieving better conversion rates and overall performances for e-commerce sellers on leading platforms like Amazon. In a fierce competition for visibility, in which a relevant share of your e-business gross merchandise value has to be poured in marketing and advertising to gain a profitable visibility and activate your funnel, you can easily improve your performance by implementing cutting edge solutions and realize more effective pricing strategies in your marketing playbook.
We managed to interview the founders of Seller Snap and have a closer glance at the company’s success story and also an awesome sneak peek on the next milestones. Here we go!
When and why did you establish Seller Snap?
We established Seller Snap in late 2016. Having worked for other solution providers for Amazon sellers, we recognized that while there were several automatic repricing solutions available, these solutions would not think like a seller. Amazon sellers would complain these solutions did not understand the dynamic environment and competition on Amazon and did not make intelligent and proactive repricing decisions.
What’s the added value of your AI powered solution in e-commerce pricing? How can you improve the pricing performance and drive more efficient marketing strategies for a seller?
Seller Snap’s focus is making intelligent decisions on repricing strategy. Looking a few steps ahead and inspired by Game Theory, Seller Snap developed an AI-powered solution that continuously analyzes competitor’s behavior. Seller Snap uses this information to create a strategy resulting in the highest possible average price for a specific competitive circumstance.
We’ve recently reviewed AI Superpowers by Kai Fu Lee, former founding president of Google China and CEO of Sinovation. He argues that the Business AI, or AI powered business solutions are among the competitive advantages of US industries in the present and near future and will bring a relevant reshape to the way we promote, sell and buy products.Where do you see the biggest potential in business AI, when it comes to consumer data, pricing, programmatic marketing, and more?
The biggest potential is in better forecasting of sales and inventory helping sellers make better business decisions.
Can you share with us a couple of success stories of Seller Snap customers who improved their performance thanks to your product?
Of course! Here’s the first one: a customer who came from a tech background started selling on Amazon in late 2016. After trying a variety of other repricers, they chose to come on board with Seller Snap in September 2017. They searched the internet looking for a repricer that used an AI solution. They liked the fact that Seller Snap was pro-actively looking for pricing opportunities automatically, where a rule-based repricer would not have this capability. Their company sells around 800 branded FBA goods in multiple amazon categories, but primarily home improvement. They have been able to scale their company enormously with the help of Seller Snap.
Before joining Seller Snap, the business was turning over around $33,000 a month from 1,500 ordered items. Since subscribing to Seller Snap, the business has now reached sales of 25,000 items per month.This equates to revenue of $1,000,000 a month. An increase of nearly 3,000% in 16 months! In just over a year, profit has gone from $8,000 per month to $180,000; an increase of over 2,000%.
Seller Snap ensures that they are competitive, while always finding the optimal price. Instead of entering price wars, they are “finding opportunities to increase price”.
That’s an impressive performance, do you have any other experiences to share and where are your competitive assets?
Definitely, here’s a quick recap: another instance is a trial where a large Amazon seller moved 50% of their active listings from their old repricer to Seller Snap. Throughout the duration of the test, we outperformed the old repricer in velocity (a difference of 3% more products). Due to the scale of this company’s operation, this would’ve made them significantly more money using strictly Seller Snap. One area of significant value is we are young and nimble. In a review written by the seller, they said, “When we want a feature added, we send an e-mail, and a few days or two weeks later, it’s added.” One example of this is that we now display how many competing offers are on a listing,
provide extra data including Seller Fulfilled Prime (SFP), inventory, and returns data.
Seller Snap’s size, flexibility, and customer support make them a valuable tool for professional Amazon sellers.
Have a look at the latest data available on big data market size revenue forecast and the impact of AI on the gross added value (GVA) of several key countries . It’s impressive, especially if you match it with the e-commerce retail penetration forecasts.