Is the future of shopping moving from checking out to checking in?

1. Turn waste into wealth

If your local grocer uses AI, they likely already know some of what’s on your weekend shopping list. Advanced analytics on sales patterns and inventory levels help retailers stock enough fresh produce to meet daily demand, improving forecasting, reducing waste and enhancing efficiency. Internet of Things (IoT) devices ensure perishable items are stored correctly to maintain freshness and quality. During delivery, these devices also monitor the location and condition of the items.

Thanks to AI, consumers can make more environmentally-conscious choices with product packaging. Having the option to allow the holiday gifts bought online to arrive in their original packaging — rather than being repackaged by the retailer — goes a long way in optimizing material resources, reducing waste and recycling efforts.

2. Reverse a culture of returns

If the year-end holidays are about giving, the new year is often about giving those gifts back. Retailers generally struggle with managing returns from online shoppers who practice bracketing or wardrobing — meaning a customer buys an item in several variations and returns the ones they don’t want or buys an item and wears it briefly before returning it. These trends hurt profit margins, disrupt inventory and strain the environment.

Adopting AI-based technologies in physical stores can be transformative. Brands can create immersive shopping experiences with intelligent dressing rooms, smart mirrors and 3D body scans, reducing returns and increasing basket size due to better-fit confidence. AI-based e-commerce offers sizing recommendations from previous orders and customer feedback, while AR lets consumers visualize bulkier products like furniture in their homes for informed choices.

Reverse logistics is critical for smoother returns. AI optimizes return item transportation by collecting them at central points and dynamically routing them based on real-time information. It also determines which returned items can be refurbished and upcycled, reducing landfill waste.

3. Make payments easier

Though a significant amount of shopping happens online, innovative digital payments are taking over in-store transactions as retailers meet customers’ demands for speed, convenience and security. Traditional retail layaway has evolved into flexible payment methods like buy now, pay later, allowing consumers to split purchases into installments while receiving their items immediately.

With payment service providers handling financing and processing, retailers can focus on boosting conversions and loyalty. Invisible payments let customers walk into a store, pick up items, and receive their bills on integrated apps and devices, eliminating the need for direct interaction with the point-of-sale system.

4. Implement transparent data practices

The product launches on social media are likely driven by AI-powered media networks, which help brands automate audience selection and ad placements for better marketing outcomes. While data is crucial for understanding customer preferences and patterns, it must be based on trustworthy and transparent practices.

Zero-party data, which customers willingly share with a brand in exchange for benefits like relevant offers and personalized content, serves this purpose. This data, collected through gamified methods like quizzes and surveys, is more reliable and cost-effective in the long run.