AI in eCommerce has become increasingly popular over the past 5 years, with many businesses jumping on board. AI-enabled eCommerce solutions are estimated to be a US$ 16.8 billion market by 2030.
AI helps offer better customer experience, product recommendations and personalization capabilities. These features help the business increase customer engagement and maximize efficiency in the process as 51% of ecommerce implement AI in ecommerce which reported by ElasticPath.
AI is here to stay in the eCommerce industry, offering powerful capabilities that are worth investing in if you want to succeed online. Let’s discuss further into the future of AI in eCommerce and the benefit of integrating AI into the business.
AI in eCommerce Statistics At a Glance
- 51% of e-commerce businesses employ AI.
- 84% of eCommerce businesses are either actively working AI solutions into their business or have it as a top priority.
- 80% of retail and ecommerce businesses use AI chatbots or plan to use them in the near future.
- AI-Enabled E-Commerce Solutions Market worth US$ 16.8 Billion by 2030.
- 1 out of 5 consumers are willing to purchase goods from a chatbot.
Source: (Gartner, Businessinsider,Global AI-Enabled E-Commerce Solutions Market– By Trends, Industry Competition/Company Profiles Analysis, Revenue (US$ Billions) and Forecast Till 2030, UBIsend Report, Elasticpath)
Future Of AI In Ecommerce
Since AI offers personalized customer service, it is the future of e-commerce, claims Mark Allinson, editor of robotics and automation news.
AI can track customer purchases, identify customer’s shopping preferences and provide targeted recommendations based on those preferences.
This allows businesses to create a more relevant and tailored shopping experience for potential customers.
AI technologies can even anticipate customer demand in the early stages of the product cycle and make use of predictive analytics to better meet that demand.
As eCommerce becomes more technologically driven, firms are beginning to use AI into their strategy to improve their customers’ buying experience on their website.
Benefits of AI In eCommerce According to Expert
#1. eCommerce Personalisation
AI in eCommerce has revolutionized the experience for customers all over the world, giving them tailored shopping experiences that are personalized and suited to their needs according to Segmentify.
By looking at customers’ purchase histories, click-throughs and browsing behavior, retailers can curate content such as products, brands and campaigns that cater to different individuals’ tastes and preferences.
This process of customizing the online store is referred to as eCommerce Personalisation and is essential in driving sales and building customer loyalty by ensuring shoppers have a more convenient and enjoyable experience when searching for their desired items.
#2. Increased customer retention
According to McKinsey’s omnichannel personalization research, incorporating Artificial Intelligence (AI) into eCommerce businesses can drastically improve customer retention.
AI allows for businesses to tailor marketing and advertising messages specifically for their customers; this tailored approach can lead to a 10-15% jump in customer revenue and retention levels.
Businesses may strengthen their customer relationships and capitalize on the benefits of AI by personalizing these communications based on consumer data and patterns.
#3.Focus on predictive marketing
According to readwrite, predictive marketing can be implemented by AI to revolutionize eCommerce.
By gathering customer data on social media and emails, companies can personalize customer experience with tailored product recommendations and targeted promotions.
This helps customers see the products they actually want at the top of their page, which in turn will increase sales and engagement.
As a result, AI is a valuable tool that helps eCommerce companies to create a more personalized client experience, resulting in higher conversion rates.
#4. Increased productivity and reduced operational costs
According to Channelsight, artificial intelligence is gaining importance in the eCommerce sector.
AI tools allow brands to automate manual processes with ease, such as A/B testing, ad optimisation, product recommendations and loyalty discounts.
This can lead to a reduction in operational costs and an increase in employee productivity.
By using AI to free up their time, employees can focus on creative tasks and brand strategies. Numerous studies have highlighted the fact that utilizing AI to automate certain tasks resulted in increased productivity of those employees.
#5. Dynamic Pricing
According to edgy, dynamic pricing in eCommerce is a powerful tool that harnesses the power of AI to adjust product prices in real-time.
Big data and machine learning algorithms are used to tweak product prices based on inventory, supply, and demand projections.
Dynamic pricing ensures that products are offered at the best price point, allowing businesses to optimize revenues while keeping customers satisfied. It’s an effective strategy to stay competitive while keeping up with the ever-changing market demands.
AI In Ecommerce Examples
#1. eBay ShopBot
eCommerce giant eBay has been using AI to improve the customer experience in a variety of ways.
Find It On eBay allows shoppers to find exactly what they’re looking for quickly by allowing them to simply upload a photo; Image Search, similarly, helps customers find products they may not have known existed; and eBay ShopBot on Facebook Messenger provides personalized shopping recommendations.
Additionally, AI is enabling the company to better protect shoppers’ personal data by identifying malicious activity more accurately – which has reportedly increased fraud detection precision by 40%. All in all, AI is making ecommerce better and safer for everyone involved.
Teikametrics provides a great example of how this technology can help retailers maximize their results and stay ahead of the competition.
Their AI-based Marketplace Optimization Platform, Flywheel 2.0, allows retailers to create and manage advertisement campaigns, as well as leverage search engine optimization growth to boost their online visibility.
Many large corporations, such as Amazon and Walmart, have used these methods to significantly improve their advertising efforts.
Teikametrics is proving that AI is the way of the future when it comes to ecommerce success.
How does AI contribute to e-commerce?
The importance of artificial intelligence in e-commerce is growing, according to BigCommerce. By automating repetitive tasks such as product recommendations and loyalty discounts, AI can help ecommerce businesses save time and money.
AI solutions can even provide low-level customer support, answering customer queries quickly and humans can intervene only when more experienced help is needed.
By using AI appropriately, it is possible to maximize the efficiency of an ecommerce business while keeping customers satisfied with responses that are timely and efficient.