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We’re just a few days away from Black Friday 2023 with sellers and shoppers alike planning their strategies to take advantage of the best offers and prices.

The Black Friday – Cyber Monday shopping event that’s traditionally marked by crazy crowds and hectic retail scenes is experiencing a revolutionary shift driven by AI. In 2022, a staggering $9.12 billion was spent online in the U.S. during Black Friday, propelled significantly by the strategic implementation of AI technologies. 

Over the last few years Amazon’s Black Friday sales have had to take a back seat to the technology-focused follow-up event on Monday. Last year, 2022’s Cyber Monday brought in almost $11 billion in revenue, and all indications point to yet another year of record-breaking success. 

Artificial Intelligence is Everywhere

And, as with seemingly everything else in the universe, artificial intelligence is going to put a very heavy finger on the scale. 

Competition on Amazon continues to heat up, and the margins that spell either success and failure are becoming razor thin. That’s why both Amazon sellers and price-conscious consumers are learning new ways of using AI to gain a competitive edge. 

With just a few days to go before this pivotal shopping occasion, Amazon sellers are increasingly harnessing the power of AI to refine customer experiences and capitalize on this crucial sales opportunity.

Among other things, AI helps unlock real-time inventory and demand information, increasingly intelligent pricing tools, ultra-targeted advertising, and streamlined customer service. While sellers stand to gain from increased sales, customers are sure to benefit from more precisely tailored offers, and even lower prices. 

AI makes it possible to comprehend customer wants, spot commercial opportunities, and provide customized shopping experiences. During the biggest shopping season, thriving in Amazon’s fiercely competitive marketplace requires a data-driven strategy.

However, AI’s abilities work on both sides of the selling equation. Amazon shoppers can also use AI to find better deals during Amazon’s Black Friday and Cyber Monday sales events. 

Here’s how. 

How Amazon Shoppers Can Use AI to Uncover Better Deals

For avid Amazon shoppers, the e-commerce giant’s Black Friday and Cyber Monday sales events mean enticing deals. But with millions of items and constant fluctuations in pricing and availability, finding the truly stellar bargains still requires work. This is where AI-powered shopping assistants can help.

By leveraging machine learning and natural language processing, tools like Amazon’s own Alexa can track and analyze pricing data across the site in real-time. Shoppers can ask about a product and receive up-to-date details on current pricing, price history, available coupons and comparisons to other sellers. This provides clarity on whether a deal is truly the lowest price versus similar items.

Some browser extensions like CamelCamelCamel even automate this tracking process. Shoppers simply set price drop alerts, and the AI notification system alerts them via email or browser pop-up when an item hits their target price threshold during Amazon’s holiday sales frenzy.

For shoppers looking to effortlessly uncover the very best Black Friday and Cyber Monday deals Amazon has to offer, AI assistants and price tracking tools are must-have companions. They simplify and optimize the bargain hunting process to save big this shopping season.

It doesn’t stop there. 

Here are four more ways AI is changing how both sellers AND customers interact with Amazon on Black Friday and throughout Cyber Week: 

1. Predictive Analytics for Amazon Inventory Management

Forecasting customer demand with any degree of accuracy has long been a challenge. For years, inventory management was essentially a guesstimate without accurate information into future trends and purchase behaviors. As a result, when demand surged during sales events like Black Friday, many sellers found themselves either overstocked or understocked. 

Many of these issues have been resolved through AI-powered predictive analytics, which forecasts customer behavior by utilizing massive volumes of data.

By analyzing purchase patterns, AI-driven predictive modeling help identify the latest consumer preferences and emerging trends

Sellers are able to use AI-enabled forecasting software to examine metrics like page visits, conversion rates, and search trends. This enables entrepreneurs to stock their best-selling items well in advance of Black Friday, in optimal quantities. In addition to increasing sales, they can prevent expensive overstock situations by planning the proper inventory. 

For shoppers, these advances are improving the overall shopping experience. After all, there’s nothing fun about missing out on great deals because the vendor has run out of inventory. 

2. Personalized Shopping Helps Connect Buyers and Sellers

In the hyper-personalized digital shopping landscape of today, generic product recommendations do not convert. Amazon can examine user behavior and data to determine each customer’s individual preferences by using AI and machine learning algorithms. After that, the platform may offer highly customized product recommendations based on their requirements and preferences. 

Some reports show that recommendations made by artificial intelligence account for upwards of 35% of what customers buy on Amazon with 88% of marketers admitting that AI plays a role in the fine tuning of their messaging to consumers. 

By presenting them with offers and promotions that are tailored to their interests, Black Friday offers an ideal chance to win over new customers. During periods of high traffic flow, small increases in recommendation relevancy can have a big positive impact on sales.

Better customisation also extends the duration of shoppers’ engagement with the platform. This raises the total customer lifetime value and raises the possibility of impulsive purchases.

More eyes on your Amazon product listings is never a bad idea.

3. Dynamic Pricing Strategies

Another constant challenge for Amazon sellers competing on popular sales days like Black Friday is figuring out the best price. Artificial intelligence-driven dynamic pricing technologies evaluate a variety of factors, including competitor prices, inventory levels, and demand projections. Importantly, they also suggest – in real time – the best price points. 

Sellers can use programming to optimize conversions and profits rather than depending solely on intuition to chase sales. 

Machine learning is used by tools like revenue intelligence platforms and repricers to find possibilities even in the midst of Black Friday turbulence. Their data-driven pricing tactics enable businesses to differentiate themselves from the competition and take advantage of very short-lived opportunities before others do. 

Critically, dynamic pricing helps diminish the need to choose between profitability and competitiveness. 

AI-enabled dynamic pricing also feels more transparent to consumers. It implies that the pricing reflects current market realities for bargain-hunting consumers. This gives consumers the assurance that, when out shopping on Black Friday, they are receiving the greatest deal possible.

And you know how much Amazon likes that! 

4. Targeted Advertising

Using artificial intelligence, millions of data points are analyzed by sophisticated algorithms, including past purchases, surfing habits, and even the depth of a page’s scroll. For Sponsored Product, sponsored brand, and display ad campaigns, this enables incredibly accurate targeting and customisation at scale. 

By identifying and engaging with their highest-probability customers, merchants and agencies can avoid spending money and time on the wrong demographics. 

At the same time, AI-fueled targeted advertising makes it more likely that instead of pointless advertisements, shoppers see the ads that closely match their demands when they shop. AI boosts the number of clicks, engagements, and purchases from Amazon ads by using audience-specific messaging and language that is conversion-focused. 

Indeed, a study by eMarketer estimates that by 2024, over 91% of digital display advertising will be programmatic, and powered by AI.  

Again, that’s one more way that every year when Black Friday comes around, AI’s targeted advertising capabilities means that busy consumers will see more of the ads that they’re interested in seeing. 

Winning the Buy Box is your reward for that. 

How Canopy Can Help 

Artificial intelligence is radically changing online shopping experiences by bringing never-before-seen automation and personalization to every stage of the purchasing process. 

Canopy Management has long relied on our industry-leading e-commerce pros to distance ourselves from our nearest competitors. They also help us to make a lot of money for our partners. Now, by training and integrating AI systems, our experts have even more bandwidth to dedicate to one-on–one interactions with their customers. 

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts. 

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

Frequently Asked Questions

What is Black Friday?

Black Friday is the day after Thanksgiving where retailers offer major sales and deals, marking the beginning of the holiday shopping season. It gets its name from the point in the year where retailers’ profits often are able to go “into the black” or attain profitability due to the increased spending by consumers.

When is Black Friday 2023?

Black Friday 2023 falls on November 24th. However, Black Friday sales now often start earlier on Thanksgiving Day or even before at many major retailers. 

What is Cyber Monday? 

Cyber Monday is the Monday after Black Friday, focused on online sales and deals. In 2022, Cyber Monday brought in almost $11.3 billion in revenue on Amazon alone, even more than Black Friday.

How can AI help Amazon sellers on Black Friday?

AI provides Amazon sellers invaluable insights into predicting consumer demand, optimizing inventory, dynamically pricing items, and targeted advertising to maximize sales.

How does AI improve the shopping experience on Black Friday?

Consumers benefit from AI via customized product recommendations matching their interests, confidently finding the best deals as prices change in real-time, and getting instant support for any issues. This results in higher satisfaction and more sales conversions.