The New Paradigm: using AI in ecommerce


I want to share my perspective on what the next "edge" is going to be in our industry (over the last few years, it was combining direct response copy with the ecom/dropshipping business model; VSLs and funnels were the edge that led to much better business performance).


I believe the most successful ecommerce businesses over the next 2 years will be those that can utilize AI the most effectively, specifically when it comes to revenue generation, including creative production, ideation, and creative testing (media buying and drawing conclusions based on test results).


Until recently, this was more of a theory and idea, but now it is completely real. All of the AI tools you need to 10x the speed of ideation, creative production, and testing are here right now.


When it comes to our business model, specifically my approach to it (focused on cash flowing offers), whoever can test the highest quantity and quality of creatives/funnels wins. The more you test, the more winners you get, naturally.


And I believe AI is like "super gasoline" that you can pour onto the fire that is an already profitable business. Once you are profitable and you know how to make winning ads and funnels, the limit to your scale is often how fast can you test creatives.
So what are the requirements for building an AI-enhanced customer acquisition machine? In my opinion, the key foundations to pulling this off are...


1) An organized system for managing creative production


2) Sufficient skill in ideating new concepts, identifying good angles and good copy, and identifying strong visuals (VSL or image)


3) Clear KPI based media buying and the ability to draw conclusions from data (which angles, copy styles, approaches are working best; again, based on DATA)


If you have all of this, the next step is implementing AI.


The most immediate ways to do this are on the creative production side in my opinion: AI can already create winning images and ad copy (it does for us consistently with very little human input at all), so this can be fully implemented, leading to a higher quantity of consistent image ads.


Next, AI can also write winning VSL scripts, hooks, and leads. This comes down to training it properly, prompting it properly, and (most importantly in my experience) providing it with winning templates from your niche to swipe and base the copy off of.


AI also creates effective visuals, and at this point I believe a full VSL can be made with AI. The most efficient uses I've found for AI visuals are for hook scenes, followed by scenes in the lead, and then 3D animations throughout the body.


On the funnel side, AI writes all of our advertorial/PDP copy, and makes most of our funnel graphics.


I'm very excited about the future of AI as it relates to the e-commerce industry. If you want to stay on the cutting edge of AI right now in the ecommerce industry, we discuss AI extensively with over 100 other ecommerce operators inside my community:

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Fernando Oliver

I built and sold 2 ecommerce brands and generated $10million+ in revenue using direct response e-commerce funnels. I make YouTube content and write long-form value emails about copywriting, VSLs, advertorials, and direct response marketing.

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