How Small Businesses Are Leveraging Tech to Stand Out in eCommerce Crowd | PYMNTS.com

With the holiday season fast approaching, small businesses are leaning into tech from targeted social media campaigns to eCommerce platforms to level the playing field against big-box retailers and capture consumer spend.

In today’s digital marketplace, small businesses are finding new opportunities by leveraging eCommerce platforms like Shopify, Wix and WooCommerce, which give small businesses access to a suite of tools that allow them to elevate their online presence, streamline operations and deliver memorable customer experiences.

As they adopt these digital tools, small businesses demonstrate resilience in the face of economic challenges.

According to PYMNTS Intelligence data, small businesses in the U.S. are demonstrating resilience, often outperforming larger companies despite economic challenges. The Main Street Index, which tracks the health of these businesses, shows they have rebounded from pandemic-related difficulties and are growing faster than pre-pandemic levels. Over the past year, these businesses have had the lowest risk of closure since early 2020.

Sectors such as construction, dining, and personal services are thriving, with construction seeing a 10% rise in activity and a 14% increase in wages. Regionally, businesses in the Southwest, Midwest and Mountain areas are leading the recovery, with the Mountain region experiencing an impressive 53% growth from 2014 to 2024.

A small business is defined as having less than 500 employees, according to the Small Business Administration (SBA). The Census Bureau’s Business Dynamics Statistics indicate there were 5,358,600 such firms in 2021, up from 5,322,155 in 2020.

Shopify’s Sidekick serves as a virtual assistant for merchants, helping them with tasks such as writing product descriptions, suggesting marketing strategies, and optimizing store layouts. For example, sellers who need assistance with product copy can prompt Sidekick to create engaging descriptions based on specific features.

Meanwhile, Wix.com introduced an artificial intelligence (AI)-powered website builder that allows users to communicate their website needs through a chatbot. Users describe their requirements and the tool generates a customized website complete with relevant pages and features such as scheduling and eCommerce. As the conversation progresses, the chatbot asks follow-up questions to gather details, creating a unique website with layout, design, text, images and business tools.

For its part, GoDaddy launched GoDaddy Airo, an AI solution designed to enhance companies’ online presence. This eCommerce software simplifies the setup of online businesses by providing domain name suggestions through natural language and integrating AI tools for logo creation, website and email hosting, product descriptions, and social media management.

GoDaddy Vice President of Product Laka Sriram told PYMNTS this integration of AI helps reduce the administrative burdens on small business owners, allowing them to focus on growth. The availability of AI-powered website services is expanding, including AI website builders that allow customization through text input, AI chatbots for improved customer engagement, and platforms that generate personalized content to enhance visitor satisfaction and loyalty.

“By weaving AI into our product offerings, GoDaddy can help alleviate some of the administrative and time-consuming tasks on small business owners’ plates while empowering them to grow their businesses in new and unique ways,” he said.

Platforms like Drift and Intercom use AI-powered chatbots for customer service, enabling real-time engagement with website visitors and providing instant support. Caroline Petersen, founder of Gallery Design Studio, a creative agency for business-to-business (B2B) tech brands, told PYMNTS in an interview these tools streamline communication and ensure quick assistance.

“AI can make websites smarter and more intuitive,” Petersen said. “Imagine a website that knows what your visitor wants to see before they do, thanks to AI-driven personalization. Plus, AI chatbots can handle basic customer service questions on the fly, making your website not just a brochure, but a helpful assistant.”

A PYMNTS Intelligence report, “New Report: SMBs Race to Critical Mass on AI Usage,” reveals 61% of small businesses use AI to automate daily tasks.

In an interview with PYMNTS, Paul Gubbay, chief product officer for Squarespace, said his company’s AI-driven design tools enhance business management solutions, making it easier for small companies to scale a business online.

“We also reimagined how entrepreneurs can engage with the different selling modalities (e.g. physical products, scheduling, digital content),” he said. “We made it simple to get started with any modality by placing them prominently within the UI along with dynamic dashboards and setup guides that teach customers how to set up their products and then grow with them over time as they build their business. We also added the capability to organize the navigation within Squarespace, so you only see the modalities that you need within the ecosystem. We see entrepreneurs experimenting with multiple ways of selling.”

To capitalize on the growing demand for personalized shopping experiences, Etsy is focusing on enhancing the gift-buying experience.

CEO Josh Silverman said Etsy has introduced a new feature called Gift Mode, which uses artificial intelligence and human expertise to provide tailored product recommendations based on minimal information about the gift recipient.