Do you know that using AI in Ecommerce can boost sales by 45%? You can also increase up to 40% of customer satisfaction by using AI.
Wanna explore the future of AI in E-commerce and upscale your business? Stay tuned with Tech Blessed.
Key Findings
- AI in the eCommerce market is projected to grow by 15.7% CAGR.
- Amazon, Alibaba, Walmart, and Shopify use AI to boost their sales and improve customer experience.
- AI tools like Shopify Magic and Boost.AI can drive the competitive edge of eCommerce business.
Table of Contents
Unleashing the Power of AI in E-commerce
Artificial Intelligence has become an inevitable part of the E-commerce industry. The AI-enabled eCommerce market is expected to reach around $16.8 billion by 2030 with a growing rate of 15.7% CAGR. Additionally, AI in E-commerce is projected to contribute around 7.3 trillion in sales by 2025.
Sounds crazy right?
Presently, around 84% of e-commerce businesses put AI as the top priority in the transformative business world. Yet, 78% of e-commerce brands already integrated AI technologies or plan to do so by 2020 to improve operational efficiency. AI-driven Ecommerce is like a blessing for digital businesses that improve customer experience and boost conversion rates.
AI and E-commerce: A Perfect Match
AI in E-commerce plays a crucial role in offering seamless, hassle-free, personalized, and more effective online services. In the transformative era, predicting the changing preferences and attitudes of customers is very complicated.
Relevant, isn’t it?
Here AI comes in eCommerce as a Game Changer and Savior. The advancements of AI customization, automation, chatbots, streamlining processes, demand forecasting, personalized product recommendations and shopping experience, customer segmentation, and improved customer services directly contribute to the profitability of E-commerce. Forbes reported that 86% of customers are willing to do more to get an effective customer experience and 80% of buyers are interested in brands that offer personalized experiences. Hence, the rise of AI in E-commerce is significant and has the potential to uplift customer services along with profitability.
Examples of AI in E-commerce: Learn From Real Cases
Amazon drives its sales rate by 35% through its AI recommendation engine: The leading e-commerce organization embraces AI and ML to improve customer experience and make shopping easier for buyers. The use of AI-generated product videos, personalized product recommendations, customized intelligence, smart search, and digital assistance are the key AI features that Amazon uses to enhance its operational efficiency.
Alibaba integrates FashionAI, a Virtual Stylist for better customer experience: This reputable organization enables AI-based mix-and-match suggestions and smart locks for capturing consumer preferences. This helps Alibaba to boost customer experience effectively.
Walmart uses Conversational AI that increases customer satisfaction scores (CSAT) by 38%: Conversational AI in e-commerce plays a crucial role in boosting customer experience and Walmart is one of the best examples of it. Natural Language Understanding (NLU) is the key feature that converts audiences into loyal customers.
Source: TED
AI Application to Enhance Customer Experience: Beyond the Basics
Personalization 2.0: Driving E-commerce through AI
Personalized services have now become a trend that helps offer a better customer experience. Around 90% of customers demand personalized services. Thus, the Personalization 2.0 strategy is one of the powerful weapons for eCommerce organizations to meet the expectations of consumers. A report represents that personalized product recommendations can boost 31% of the revenue of eCommerce sites and a 176% increase in conversation rates. Isn’t it cool? Look at the strategy of L’Oréal SkinCeuticals which uses Hyper-Personalization, a higher level of customization process to satisfy customers. This strategic movement helps the eCommerce sector to achieve immense profitability and growth in the evolving era.
Conversational AI for E-commerce: Chatbots and Beyond
Conversational AI for E-commerce is a revolution that can not be denied. AI chatbots not only solve customer queries instantly but also make the service available 24/7 by reducing costs. Now AI-powered chatbots tackle around 70% of customer conversations. For example, Sephora increases 11% of sales rate by using AI chatbots. This application of AI offers customers a personalized support journey that satisfies customers and enhances the engagement rate as well.
The Future of Shopping: Smart Search
Do you know that AI-powered smart search has the potential to increase the revenue of eCommerce by 30% and the conversion rate up to 25%? The craze of using smart search including visual or image recognition search and voice search is significant. Around 50% of customers aged between 18-25 rely on vice assistants to search or purchase products. Organizations like eBay also integrated AI-powered Image Recognition Search for better user experience.
AI as a Sales Generator: Transformative Era in E-commerce
- Customer behavioral prediction: AI predictive analysis feature helps in comprehending rapidly changing customer behavior and preferences. Netflix uses an AI-powered Content recommendation system that recommends shows and movies to audiences based on their user behavior. This directly impacts a better customer experience and generates sales.
- Better Engagement and Customer Support: AI integration in E-commerce helps boost customer engagement rates by offering 24/7 easy assistance that significantly increases organizational sales. For example, Shopify Inbox is the AI-powered chatbot that is used for offering better customer engagement and personalized customer services which convert chats into sales through conversational AI features.
Confused about applying AI tools in your E-commerce business? Read further to get recommendations on the best AI tools to boost your business.
Best AI Tools for E-commerce to Elevate Your Business
Top 5 AI Tools for E-commerce: Enhance Your business journey
- Shopify Magic: This Shopify built-in tool helps in personalized marketing, Cart recovery, boosting sales, and enhancing customer experience.
- Boost.AI: Improve customer satisfaction through interactions by offering AI-driven support and boosting conversion rate.
- Jasper AI: One of the best strategic price-optimizing AI tools that helps eCommerce businesses fix effective price points by using machine learning to maximize revenue.
- ClickUp: This tool helps streamline tasks and product test plans and reduces the time for manual work.
- Prisync: It helps in monitoring the prices of competitors and adjusting your pricing strategy to get more benefits.
Generative AI E-commerce: Offering Unique Experiences to Customers
Generative AI can be addressed as the most powerful key to boosting customer experience and generating more revenue in the E-commerce industry. It helps in offering a personalized, shopping experience, automated content generation, and improved SEO that supports eCommerce websites to rank higher and attract organic traffic. Walmart is one of the examples where the retail giant uses a Generative A Search, fine-tuned model along with OpenAI which helps to generate personalized responses and allows customers to receive responses to their prompts.
Source: Brendan Gillen
Last But Not The Least
AI in E-commerce brings revolution to the industry by transforming the traditional patterns of custom services. AI has enormous possibilities for eCommerce businesses by uplifting its functionality, efficiency, and profitability. Hence, leveraging effective AI tools for starting your eCommerce business journey can upscale your strategic process to grow in the dynamic market. The application of AI not only meets but exceeds your customer expectations by improving customer journeys and ensuring long-term success, competitive edge, and profitable growth. So, what are you waiting for? Embrace AI in your eCommerce business and transform your digital stores with a customer-centric approach.
Do you know Artificial Intelligence is transforming traditional business sectors and creating new opportunities for job seekers? You can check out our articles on AI in the education industry and the AI revolution to gain in-depth insights and stay in touch with Tech Blessed to gain more insightful updates on the latest trends in AI.
