Our mission is to simplify and streamline online selling for brands and sellers
Paxcom is a SAAS-based software that provides complete e-commerce automation solutions, from creating and managing e-stores (or marketplaces) to advanced data analysis, advertising campaign management, and ensuring happy customers. Speaking to Fibre2Fashion, CEO Punit Sindhwani talks about the future of e-commerce in the context of the growing use of AI and Machine Learning.
What impact do you foresee artificial intelligence (AI) having on the digital commerce industry in the next 5-10 years?
Artificial intelligence (AI) is poised to significantly impact the digital commerce industry in the next 5-10 years, transforming how businesses operate, engage with customers, and optimise their processes. AI-powered technologies will enable more personalised and seamless shopping experiences, revolutionising various aspects of the digital commerce landscape.
One of the key areas where AI will make a difference is customer experience. AI-driven chatbots and virtual assistants will become more sophisticated and capable of understanding and responding to customer queries more humanistically. These AI assistants will enhance customer service by providing instant assistance, personalised recommendations, and guided product searches, ultimately improving customer satisfaction and driving conversions.
AI-powered product recommendation systems will redefine personalisation. AI algorithms will generate highly targeted recommendations by analysing vast amounts of customer data, including browsing behaviour, purchase history, and demographic information. These recommendations will be based on individual preferences and behaviour patterns, creating a personalised shopping experience for each customer. This level of personalisation will increase upselling and cross-selling opportunities and foster customer loyalty and retention.
Furthermore, by leveraging historical data, market trends, and external factors, AI algorithms will enable businesses to accurately anticipate customer needs, trends and suggest clear actionable strategies. This valuable insight will empower organisations to optimise inventory management, pricing strategies, and marketing campaigns. The ability to predict consumer demand and the impact various levers have on it will give businesses a competitive edge, allowing them to stay ahead in the rapidly evolving markets, and will lead to more efficient operations, reduced costs, and increased profitability.
AI will profoundly impact fraud detection and prevention in the digital commerce industry by analysing real-time data to identify fraudulent patterns and protect businesses and customers from cyber threats. Additionally, AI-driven automation of back-end processes such as inventory management, supply chain optimisation, and logistics will streamline operations, reduce manual labour, minimise errors, and enhance efficiency, resulting in improved customer satisfaction. Integrating AI in the digital commerce industry over the next 5-10 years will revolutionise customer engagement, operational optimisation, and growth, creating a more efficient and profitable landscape.
How is the e-commerce industry currently leveraging AI technologies to improve efficiency, productivity, or customer experience?
The e-commerce industry has been actively leveraging AI technologies to enhance efficiency, productivity, and customer experience.
Personalised recommendations: AI algorithms can generate highly targeted recommendations by analysing vast amounts of customer data, including browsing history, purchase behaviour, and preferences. These personalised suggestions improve the customer’s shopping experience by reducing the time spent searching for products and increasing the likelihood of purchasing, thereby driving sales for e-commerce platforms.
Chatbots and virtual assistants: AI-powered chatbots and virtual assistants have become increasingly prevalent in the e-commerce sector. These intelligent chatbots can handle customer inquiries, provide real-time support, and offer personalised recommendations. They can understand natural language queries and provide accurate responses, thus improving customer satisfaction and reducing the workload on customer service teams.
Inventory management and demand forecasting: Machine learning algorithms analyse historical data to accurately forecast demand, optimise inventory levels, and streamline delivery processes. This allows e-commerce businesses to minimise inventory costs, prevent stockouts, and improve order fulfilment efficiency. AI-powered route optimisation algorithms help companies plan and optimise delivery routes, reduce delivery times, and enhance customer satisfaction.
Dynamic pricing: AI-based pricing algorithms analyse various factors like customer behaviour, competitor pricing, and market demand to dynamically adjust prices in real-time. This enables e-commerce platforms to optimise pricing strategies, maximise revenue, and stay competitive.
Fraud detection and security: E-commerce platforms face the challenge of identifying and preventing fraudulent activities, such as credit card fraud and fake reviews. AI algorithms can analyse large datasets and identify patterns and anomalies that might indicate fraudulent behaviour. By continuously learning from new data, these algorithms can adapt and improve their ability to detect and prevent fraudulent activities, ensuring a secure shopping experience for customers.
Visual search: With image recognition and computer vision algorithms, customers can upload images or take pictures of products they desire, and AI-powered systems can match these images with similar products in the inventory. This technology not only improves the convenience for customers but also opens up new avenues for e-commerce businesses to showcase their products.
With AI’s relentless advancement, we can anticipate a future where e-commerce achieves even greater levels of integration, innovation, and unparalleled customer satisfaction.
It is said that ‘data is the new oil.’ What are your thoughts on this?
Data has emerged as a key asset for businesses across the board. It fuels decision-making processes, enables personalised customer experiences, and drives competitive advantages in a rapidly evolving marketplace.
Businesses generate substantial data from multiple sources, such as customer interactions, website analytics, purchase history, and social media engagement. This data encompasses valuable insights into customer preferences, behaviour patterns, market trends, and operational efficiency.
Collecting, analysing, and leveraging this data empowers e-commerce companies to understand their customers better. This understanding allows them to tailor their offerings, personalise marketing campaigns, and enhance customer experience. Data-driven insights also help businesses identify areas for optimisation, streamline operations, and improve supply chain management, ultimately driving efficiency and cost savings.
To sum up, data has gained significance as a resource in the digital age, similar to how oil has shaped industries and economies in the past.
What are the primary industries or sectors that Paxcom serves, and what specific challenges or pain points does your company address within those industries?
We had started when e-commerce in India was in its nascent stage and have grown with the industry. The initial inertia of brands to recognise their potential and the ever-changing e-commerce environment have been some challenges. However, we have had the opportunity of working with some great brands and built strong goodwill for ourselves by constantly adapting to ensure that we go above and beyond our client’s expectations. This has helped us grow to our current strength and recognition in the industry.
What do you think is the future of e-commerce, particularly for the apparel and fashion sector?
The future of e-commerce in the apparel and fashion sector is quite promising. Here are some of the trends that will dominate in the times to come:
Enhanced personalisation: Personalisation will play a crucial role in the future of e-commerce. Retailers will increasingly leverage customer data, such as browsing history, purchase patterns, and preferences, to provide personalised recommendations and tailored experiences. Virtual stylists and augmented reality (AR) technologies may also become more prevalent, allowing customers to virtually try on clothing and accessories before purchasing.
Improved virtual fitting: Virtual fitting rooms and sizing algorithms will advance, reducing the challenges of finding the right size online. AI-powered solutions can analyse body measurements and recommend the most suitable size for customers, increasing customer confidence in online purchases.
Augmented Reality (AR) and Virtual Reality (VR): AR and VR technologies will likely be integrated into the e-commerce experience. Customers may use AR to visualise how clothing items will look on them or how different colours and styles will match their preferences. VR could offer immersive shopping experiences, where customers can virtually browse through virtual stores, try on clothes, and receive personalised recommendations.
Sustainable practices: The demand for sustainable and ethical fashion is growing, and e-commerce platforms must adapt to this trend. Consumers are becoming more conscious of the environmental impact of their purchases, so e-commerce retailers will likely emphasise sustainable sourcing, eco-friendly packaging, and transparent supply chains.
Social commerce: Social media platforms are powerful tools for fashion influencers and brands. In the future, e-commerce may integrate more seamlessly with social media, allowing customers to purchase directly from social media posts or influencer content. Social shopping experiences like live-streaming events and interactive product showcases may become more prevalent.
Mobile commerce: With the increasing adoption of smartphones, mobile commerce (m-commerce) will continue to dominate the e-commerce landscape. Retailers will focus on optimising their platforms for mobile devices, offering user-friendly interfaces, quick loading times, and seamless payment options to cater to on-the-go shoppers.
Same-day delivery and fulfilment: The demand for faster delivery options will persist. E-commerce companies may invest in local fulfilment centres, partnerships with local retailers, or even drone delivery to ensure speedy order processing and same-day or next-day delivery.
Can you provide an overview of Paxcom’s core business and its services?
In the fiercely competitive e-commerce space, brands must be agile and well-informed to succeed. Paxcom’s e-commerce solutions consist of a robust set of proprietary technology solutions backed up by an experienced services staff to provide end-to-end assistance for businesses looking to expand their online presence. It is well-known for its digital solutions that cover all aspects of day-to-day e-commerce operations. Paxcom’s analytical software tools and expert customer service teams assist brands and sellers in improving their overall online performance. Our mission is to simplify and streamline online selling for brands and sellers.
Kinator – Paxcom’s proprietary technology solution – can collect and analyse publicly available data from all major platforms across multiple geographies to deliver Data-Driven Analytics & Insights for brands selling on multiple e-retailers and marketplaces. Paxcom’s interactive KPI Dashboards & Reports enable data-led decision-making on Product Pricing, Promotions, Placement, and more. Kinator helps brands track, measure, audit, and analyse their: On-shelf Availability; Price, promotions, and Buy Box; Ecommerce content; Reviews & Ratings; Visibility on search results and category; Sales across platforms; and Advertising performance.
How does Paxcom differentiate itself from other companies that offer similar services?
Paxcom’s USP is a robust suite of technology solutions backed by an experienced team obsessed with a data-driven approach to e-commerce growth for its customers. Its technology solution consists of ML/AI-powered actionable insights on Product Content, On-Shelf Availability, Reviews & Rating analysis, Share of search, Sales, and Promotions. The startup’s omni-channel technology solution optimises the supply chain for order fulfilment and warehouse management, while its eCart Solution helps establish eBrand Store and apps. Paxcom team comes with a wealth of experience in establishing omnichannel strategy and solutions, and has gained valuable insights in managing its own, and some of the prominent brands’ e-commerce growth since 2011.
What are the primary industries or sectors that Paxcom serves, and what specific challenges or pain points does your company address within those industries?
We had started when e-commerce in India was in its nascent stage and have grown with the industry. The initial inertia of brands to recognise their potential and the ever-changing e-commerce environment have been some challenges. However, we have had the opportunity of working with some great brands and built strong goodwill for ourselves by constantly adapting to ensure that we go above and beyond our client’s expectations. This has helped us grow to our current strength and recognition in the industry.
How do you ensure the security and privacy of client data and maintain compliance with relevant regulations?
Paxcom maintains ISO 27001 certification and has a comprehensive privacy policy to protect client data. We employ appropriate security measures, provide user control over information, and follow specific payment and refund/cancellation policies. Users have rights regarding their data, and Paxcom encourages communication for privacy-related concerns. Paxcom ensures client data security, privacy, and compliance through these practices.
Can you highlight any recent successful projects or partnerships, especially with any fashion e-commerce company that have contributed to your company’s growth and reputation?
Our partnership with a leading footwear startup has allowed us to experiment with innovative strategies and achieve remarkable results. Some of the key highlights are:
1. Creatives Experimentation:
● Extensive experimentation with creatives to stand out in a competitive market.
● Pushing the boundaries of designs and visuals to capture the audience’s attention.
2. Targeted Approach:
● Specific targeting of Stock Keeping Units (SKUs) and niche keywords.
● Optimisation of product listings for improved visibility and higher conversion rates.
3. Expanded Product Variants:
● Introduction of a wider range of product variants.
● Catering to diverse customer preferences and expanding market reach.
4. Average Order Value (AOV) Experiments:
● Testing different AOVs to understand customer conversion patterns.
● Fine-tuning pricing strategies and optimising profitability.
5. Streamlined ASIN Mapping:
● Mapping different variants of the same SKU under one parent ASIN.
● Simplified browsing and purchasing process for customers.
● Improved inventory management and operational efficiency.
6. Size-Specific Targeting:
● Utilising generic keywords and competitor SKUs for size-specific targeting.
● Enhancing visibility and relevance in search results.
● Attracting customers searching for specific sizes and boosting sales.
Our dedication to innovation and customer-centric approaches have differentiated us in the competitive fashion e-commerce landscape. These achievements demonstrate our commitment to continuous improvement and positioning us as a strong player in the industry, poised for continued growth and success.
What is your approach to innovation and staying ahead in the rapidly evolving AI landscape?
Paxcom stays ahead in the rapidly evolving AI landscape by leveraging emerging technologies, continuous research and development, strategic collaborations, and a proactive approach to innovation, ensuring cutting-edge solutions for its clients.
Paxcom develops and offers proprietary technology solutions like Kinator that leverage AI and emerging technologies. These solutions enable brands to collect and analyse data, derive insights, and make data-driven decisions. By investing in developing such solutions, Paxcom stays at the forefront of technology and provides cutting-edge tools to its clients.
● Continuous research and development: Emphasising ongoing research and development to stay current with the latest advancements in AI, machine learning, NLP, and computer vision. This includes monitoring industry trends, exploring new algorithms and models, and experimenting with innovative approaches. By dedicating resources to R&D, Paxcom ensures it remains at the forefront of technology advancements.
● Monitoring industry and market trends: Keeping track of emerging technologies, new applications, and evolving customer needs. We can anticipate market demands and align its innovation efforts by staying informed about the latest developments.
● Client collaboration and feedback: By actively seeking client feedback, Paxcom can identify areas where AI and emerging technologies can bring value and develop tailored solutions accordingly. Client collaboration also helps Paxcom to gain insights into real-world use cases and refine its innovation strategies.
How do you leverage emerging technologies such as machine learning, natural language processing, or computer vision to deliver value to clients?
Paxcom’s solution allows brands to track, measure, audit, and analyse various aspects of their e-commerce presence. This empowers them to optimise their strategies and drive business growth based on data-driven decision-making.
Here’s how Paxcom utilises these technologies to deliver value:
1. Data collection: Machine learning and data scraping techniques are used to collect publicly available data from major platforms. This data includes information related to on-shelf availability, product pricing, promotions, buy box status, e-commerce content, reviews and ratings, visibility on search results and categories, sales across platforms, and advertising performance.
2. Data analysis and insights: Machine learning algorithms are applied to the collected data to analyse and derive valuable insights. Natural language processing techniques help extract meaningful information from textual data such as product descriptions, reviews, and ratings. This analysis enables brands to make data-driven product pricing, promotions, placement, and other decisions.
3. KPI dashboards and reports: The visualisations present the analysed data as user-friendly, allowing brands to monitor and track essential metrics related to their products and performance on e-retailers and marketplaces.
4. Decision-making support: By leveraging ML and data analytics, we assist brands in making informed decisions. The insights from the analysis can guide brands in optimising product pricing, developing effective promotions, improving on-shelf availability, enhancing e-commerce content, managing reviews and ratings, and improving overall visibility and performance across platforms.
5. Competitive advantage: We enable brands to gain a competitive advantage by providing them with a comprehensive view of their performance in the e-commerce landscape. The insights and analytics help brands identify opportunities, understand market trends, and stay ahead of competitors.
How do you help fashion brands scale their e-commerce presence?
The fashion industry is a very price-sensitive market; focusing more on category targeting, niche targeting, specific size targeting, variant mapping, and gaining top visibility is essential.
Here are some strategies we use for scaling:
Category targeting and refinement: This involves refining your product offerings, optimising your website, and creating targeted marketing campaigns to attract customers interested in those specific categories.
Niche targeting: By understanding the unique preferences and needs of this niche, you can create specialised marketing campaigns, develop products that cater to their specific tastes, and position your brand as an expert in that niche.
Size-specific targeting: This involves offering a wide range of sizes, providing detailed size charts, and creating personalised recommendations based on customers’ size preferences. This attention to size inclusivity can attract customers who often need help finding their preferred size elsewhere, increasing customer satisfaction and loyalty.
Variant mapping for easy customer journey: You can streamline the process of selecting different options within a product category. For example, showcasing different colour options or styles for a specific clothing item intuitively makes it easier for customers to find and purchase the variant they prefer, resulting in a smoother shopping experience.
Visibility through DSPs and website awareness: By investing in DSPs, you can reach potential customers who fit your target market and direct them to your own website. This allows you to control the customer journey, gather data, and build a relationship with your audience while reducing reliance on third-party platforms.
These are just a few strategies that can help fashion brands scale their e-commerce presence; It is essential to continually assess and adapt your approach based on market trends, customer feedback, and data analysis to optimise your growth strategy.
What are your future plans and vision for expanding or new product/service offerings?
We are aggressively growing our global presence and expanding within the country. Our current clients include over 150 brands across 21 countries, and we are growing our client base and our engagement with existing clients.
At the moment, our SaaS-based data analytics tools are our top focus, with e-commerce advertising and strategy services following closely behind. Looking ahead, we expect our revenue to triple within the next two years, with the primary chunk of that growth coming from North American and Asian markets.
