AI, AI, & AI…
AI has become so mainstream and even you simply type anything on “Google” and Generative AI starts showing you results in the best possible way!
The internet is buzzing with the term “AI” and it’s crazy how the technology has been transforming industries of all types!
And the eCommerce industry is no exception at all!
Though eCommerce is a leading adopter of AI, the evolution is still underway!
From tailor-made product recommendations to price optimization and sales/demand prediction, AI in eCommerce has garnered abundant benefits.
Can’t wait to see what AI holds for eCommerce?
Don’t worry, this blog won’t make you wait! Let’s dive into the guide to understand how AI is used in eCommerce, its benefits, implementation, and more!
Important Facts & Statistics Related to AI in eCommerce
Though everybody is bragging about AI in eCommerce, it’s time to understand if it’s worth the type. Well, the facts don’t lie! Let’s look at key statistics related to artificial intelligence in the eCommerce industry.
- The eCommerce AI market is expected to reach over $45 billion by 2032.
- Nearly 85% of eCommerce businesses are aggressively using AI in eCommerce.
- The impact of Generative AI on the global eCommerce sector is valued at over $5.900 trillion and is expected to go beyond.
Considering such facts, AI in eCommerce shows no signs of stopping and will continue dominating the market.
Al may help businesses deliver personalized product recommendations while assisting customers to enjoy a seamless shopping experience.
Moving ahead, now the question arises- What are the use cases of AI in eCommerce? In what ways using AI in eCommerce can help grow your business?
Let’s find out!
How is Artificial Intelligence Useful in eCommerce?
Here is a list of the ways that show how AI is used in eCommerce.
1. Chatbots & Virtual Assistants
When you visit a website/app, you see a chatbot, named Sara, Siri, or whatever, is always ready to assist you! These virtual assistants are a popular use case of AI that helps resolve customers’ queries and facilitate a seamless online shopping experience. From handling easy transactions to providing personalized offers to customers, Chatbots have got you covered!
2. Fraud Detection
AI in eCommerce can analyze data and detect potential fraud in real time. AI is designed in a way that it can spot unusual transactions which include high-valuation transfers, unknown locations, multiple transactions within a few minutes, and more. Let’s say a user makes 3-4 continuous heavy purchases and that too, in an unknown location, the ML model will detect it as a fraud.
3. Dynamic Pricing
Using AI in eCommerce may help businesses determine the ideal discount amount that may drive a successful rate. Furthermore, AI can study your competitors to adjust the right order of products and make pricing better compared to them. The AI in eCommerce is so strong that it monitors what products a user clicks, adds to their cart, and purchases. With such accurate and robust monitoring techniques, AI has the potential to change the price of an item for a specific customer to increase the chances of a successful sale.
4. Product Recommendation to Customers
Have you ever wondered- Why your customers or even you as a business will always find the relevant related products? Well, that’s the power of AI! It plays an incredibly important role in providing the best product recommendations to customers, thereby AI enhances customer experience in e-commerce. Additionally, it analyzes the actions of the user and undertakes abundant information, including customers’ browsing history, past orders, number of purchases, and more.
5. Enhanced Social Media Listing
Just think about it! It always happens when your user searches for a product online and they bump into the same kind of product on their social media platform. It’s not a coincidence; that’s the potential of AI in eCommerce. AI analyze a user’s complete profile, including their posts, comments, type of content, and reviews. Moreover, this helps to understand what kind of product they’re interested in, brands they prefer, their budget, and more.
Well, that’s how AI is diving deep into eCommerce to understand customers’ behavior and offer them a personalized shopping experience!
Though we understood a few use cases of AI in eCommerce, it’s time to set our sights on its benefits!
Just think. Does it help businesses? Well, let’s dive in!
What are the Benefits of AI in eCommerce?
Here is the list of the benefits of AI in eCommerce.
Benefit #1: Targeted Marketing
Reaching the right people at the right time and most importantly, with the right message is not a joke. Competition is tough and every business is trying hard to target their audience. AI in eCommerce may help segment audiences based on their past orders, browsing history, their lifestyle, and more. Furthermore, businesses can leverage the information to target ad campaigns for marketing across different channels.
Furthermore, AI can predict what social media platforms customers use and thus show them ads in a personalized format. Let’s say if your customer has left an item in their cart then AI will send personalized text or email to remind them of their order.
Benefit #2: Smart Searches
Since technology is making improvements, AI may even predict the intent behind a customer’s search query. In addition to personalized product recommendations, AI leverages both online and offline data to understand the users’ intent. For example, if a user searches for “Sleeveless t-shirts” then AI may determine the user might be having an upcoming trip planned.
Moreover, AI is constantly keeping an eye on customers’ behavior to make accurate predictions. Let’s say a customer searches for the “best sneaker” the AI will show them the shoes from their preferred brand.
With “Smart Search”, businesses can show accurate products to their customers, at the right time, and for the right occasion.
Benefit #3: Improved Logistics & Predictions
Though AI is aggressively evolving, it may help a lot more than businesses could ever think of! This is where the importance of logistics and predictions comes in! Earlier, eCommerce stores used to run into difficulties while managing warehouse processes and supply chains. Thanks to AI, it extracts data from multiple sources, including demographic details, behavioral data, finance data, and more.
Once done, AI incorporates techniques like Machine Learning, Neural Networks, Optimization Algorithms, and Data Mining. Thus, it helps businesses to analyze huge data, identify patterns, and then make predictions.
For inventory management, AI analyzes historical data and current market trends to show the upcoming demand in future. On the other hand, it even predicts special demands on annual events like Black Friday Sales to know the seasonal demands. Moreover, it examines supply and demand data to calculate the discount required to make a successful sale in a season.
Benefit #4: AI Assistants
Did you know that AI assistants manage nearly 70% of conversations with online customers? Since Generative AI came into the picture recently, the market for AI assistants is expected to go more than $5.9 trillion. Speaking of the customers first, AI assistants promptly respond to customers’ queries, irrespective of any time. Thus, it helps share personalized recommendations with the users and even provides real-time tracking.
But if we talk about businesses, AI assistants help overcome language and tone-related challenges. Consequently, it helps retailers identify fake products and optimize product descriptions to ensure businesses don’t run into potential losses.
Benefit #5: Enhanced Business Workflow
Managing an eCommerce business isn’t a cakewalk. Some abundant monotonous activities and tasks drain a lot of time. Thanks to the integration of AI in eCommerce, businesses can efficiently manage repetitive tasks while enhancing the backend and front-end workflow. From handling customer queries to streamlining pricing strategies, AI integration may help enhance efficiency. But there’s no denying that there’s already a huge load of data and managing it via AI is more than a boon to any organization.
The best part AI has already eliminated mundane tasks, which led to a reduction in many employees. Since all the repetitive tasks are now handled by AI, businesses can now shift their focus to productive decision-making.
Using AI in eCommerce, done! Benefits of AI in eCommerce, done!
And now, it’s time for implementation!
Let’s know how to do it!
How to Implement AI in eCommerce?
Remember that deploying AI in eCommerce is not a kid’s play! As a business, you should keep a list of the following things in mind for a successful integration. Let’s discuss the tips to implement AI in eCommerce.
- Understand Your Business Needs
Think and ask a few questions to yourself. What are my business goals? How can I achieve my objectives? What tech stack should I employ? Well, understanding your needs is the first step to your growth. When you know what you want, you can simply adopt AI and make it work in a way that aligns with your business. Furthermore, with a pre-planned approach, you’ll not have to worry about errors and false predictions.
- Hire Professional Assistance
If you don’t know how to do then just don’t do it! Using AI in eCommerce isn’t easy and demands extensive effort and technology. If you, somehow, try to do it with half knowledge then your business might run into irreversible loss of reputation and sales, of course. Outsourcing your project to a third party is an ideal choice. Since they are pre-equipped with tools and expertise, they can make the integration successful, which helps grow your business.
- Monitor & Monitor
Once you’re done implementation, try to monitor the results to check whether you’re doing well or not. If you’re not getting the right results after using AI in eCommerce then hire another professional company with more than a decade of experience and proficiency in using tools. Furthermore, hiring the right team of experts will ensure your brand will facilitate enhanced user experience and uninterrupted business growth.
That’s nearly a wrap to everything you may need to know about AI in eCommerce!
Speaking of its future, the AI trend looks promising and will continue to make an impact for years to come!
Let’s understand what future AI in eCommerce holds.
Why is AI the future of eCommerce?
It is no secret that AI in eCommerce will likely bring significant advantages to the business. Due to its fast and less prone to errors, it will continue to dominate the market for decades. Since eCommerce has made our lives so easy and convenient, it must evolve to keep up with the latest trends to not only save time but help businesses earn profit. Having said that using AI in eCommerce may help businesses reap countless benefits, including logistics, storing, customer journey, secure payment systems, supply chain, and more.
Final Thoughts
There you have it! AL in conjunction with Machine Learning is all set to disrupt the entire eCommerce industry! Furthermore, with the help of AI, eCommerce stores can extract valuable data regarding customers’ past orders, buying behaviours, items in the cart, and more to provide them with personalized product recommendations.
Remember that even if you how AI is used in eCommerce, there’s a lot more involved in the story like approach, methodology, technology, expertise, and whatnot. Even if you try to do it yourself, you may run into errors that could harm your business reputation.
Looking for professional assistance that may help integrate AI in eCommerce? If so, look no further than EitBiz, a leading eCommerce development company! Our track record speaks for itself! We have helped multiple renowned eCommerce stores with AI integration which not only made their business grow but also provided their customers with a convenient navigation experience.
Ready to use AI in eCommerce? If so, contact EitBiz at +1(812)530-6300 or mail us at info@eitbiz.com to discuss your AI & eCommerce-related requirements. You’re just a call away to make your dreams come true!
Frequently Asked Questions
Listed below are the frequently asked questions related to AI in eCommerce.
1. How can eCommerce brands use AI?
There are multiple ways in which eCommerce brands can use AI. It may include Chatbots, fraud detection, personalized product recommendations, virtual assistants, dynamic pricing, and more. Businesses can utilize these techniques to enjoy scalability.
2. What are the emerging roles of artificial intelligence in eCommerce?
Artificial Intelligence plays multiple roles in the growth of eCommerce stores. From providing intelligent product recommendations to detecting fraud and managing inventory, AI in eCommerce may help reshape the entire landscape.
3. How Generative AI is used in eCommerce?
In eCommerce, Generative AI helps extract the data and then transform product information and descriptions based on site searches, visitors, and content clicks. Thus, it will help offer a refined and valuable experience to users while browsing the app.
4. Can AI optimize pricing strategies in eCommerce?
Yes, AI can evaluate a lot of aspects, including customer behavior, and market dynamics, and manage product pricing to help business maximize their overall revenue.
5. Are there any privacy concerns related to AI in eCommerce?
Though it is safe, there are some possible chances of security breaches. Since AI collect each detail of a customer from their eCommerce to their social media account, there are ethical concerns associated.
