Best buy East deployment an artificial intelligence (AI)-based delivery tracking system that promises minute-by-minute updates.
The company aims to satisfy customers increasingly frustrated by unclear delivery times and limited order visibility. Experts say the move comes as the e-commerce industry grapples with growing consumer expectations for delivery transparency and efficiency.
“More than 30% of global consumers are open to AI-powered ordering and delivery updates, showing the immense potential value of the technology behind Best Buy’s new feature” Krish Iyervice president of industry relations and partnerships at a shipping software company Navigation stationtold PYMNTS. “When customers know exactly when their package will arrive, it reduces anxiety and builds confidence. This is crucial for large or high-value purchases that require someone to be present for delivery.
Best Buy’s new system, which will be rolled out nationally, uses real-time data and predictive analytics to provide customers with detailed delivery updates. “We use data such as forecast demand and real-time traffic patterns to reduce delivery times, optimize our routes and ultimately provide customers with a live, up-to-the-minute arrival time estimate,” Best Buy said in its statement on Thursday (Aug. 15). ) announcement.
According to research of PYMNTS Intelligence, carried out in collaboration with Adobeconsumers abandoned their online shopping carts on average eight times per month when browsing brand websites.
Changing consumer expectations
The retail industry has been moving toward more seamless delivery systems for several years, driven by innovations in dining and ride-sharing. According to Iyer, a study conducted by ShipStation found that 80% of global consumers now prefer at least four delivery updates per order, and 38% want daily updates that include detailed location information.
Many retailers struggle to meet these expectations. ShipStation’s research finds that two-thirds of retailers fail to provide basic updates, like a simple “shipped” notification, Iyer told PYMNTS.
Implementing AI-based tracking systems presents several technical challenges. According to Ed Clarkefounder of the logistics company Yojeeone potential problem is customer perception of driver routes.
“Sometimes the driver may appear to be moving away from the customer and heading to another stop first,” he told PYMNTS. “This can unintentionally create a poor customer experience, triggering unnecessary customer service calls, even if the AI has already determined that the delivery time will be met.”
Integrating data across multiple systems poses another hurdle.
“Companies need to ensure that their AI models are accurate and that the data ‘talks’ between different systems in the retailer’s technology stack,” Iyer said. “The tracking data is only as good as the inputs and behaviors themselves; that is, a person who fulfills the order on time, scanning from the points where the order is generated and retrieved.
Hémanth HollaSenior Director of Supply Chain at Tredencesaid the potential impact of AI tracking extends beyond customer satisfaction.
“AI-powered live tracking has the potential to transform last-mile delivery in the retail industry,” Holla told PYMNTS. “By leveraging real-time data on traffic, weather and other external factors, companies like Best Buy can significantly reduce variability in delivery times and provide near-instantaneous updates to customers. »
Holla also suggested broader implications: “In addition to improving customer satisfaction, it can improve supply chain efficiency through AI-driven dynamic resource allocation.” The impact of technology extends beyond logistics, influencing customer behavior and purchasing decisions in both e-commerce and physical environments.
Influence customers
Technology’s influence could extend beyond logistics, potentially affecting consumer behavior and purchasing decisions in both online and physical retail environments. “This could even encourage larger purchases, especially online, as people will feel more confident in scheduling delivery time slots,” Iyer predicted.
As Best Buy implements this new system, it joins many retailers exploring applications of AI in their operations. Amazonfor example, has been using AI for years to optimize its vast logistics networkwhile Walmart implemented AI-powered inventory management systems.
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The move also comes as the retail sector faces post-pandemic changes in consumer behavior, continued supply chain disruptions and increasing competition from e-commerce giants. Innovations in delivery tracking could provide a competitive advantage.
“AI-powered live tracking is not only a great feature, it will become an expectation,” Iyer said. “Brands that adopt this technology will have a significant advantage in retaining customers and driving sales. »
Holla said technology would be a force for innovation in retail.
“AI-powered live tracking represents a transformative leap forward in logistics, setting new standards in customer service and operational excellence in the retail industry,” he said. -he declared.
