7 ways to Harnessing the Power of AI in eCommerce
Soumi BiswasAugust 1, 2023
Welcome to the future of eCommerce, where Artificial Intelligence (AI) is not just a buzzword but a game-changer. It’s more than a powerful tool that helps you optimize your online store’s performance. In fact, it can do more than that. Well, it has the power to carry out targeted marketing, deliver personalized recommendations to your customers, and even automate your daily business operations. Yes, that’s just a brief of what AI for eCommerce can do for your business.
Artificial Intelligence – Market Statistics
According to a report by Precedence Research, the eCommerce AI market is expected to hit $45.72 billion by 2032. Also, it’s expected to grow at a CAGR of 18.45% each year from 2023 to 2032. (Source: GlobeNewswire)
Similarly, another study revealed that the retail market using AI is projected to reach $49.09 billion by 2028 while growing an amazing 38.05% for the 2022-2028 period.
The following table shows the percentage of companies that are using AI to those who are just exploring it.
|Year||Companies Using AI (%)||Companies Exploring AI (%)|
Reports showed that in 2022, 35% of businesses used artificial intelligence to carry out their business operations, whereas 42% of companies are still exploring AI for implementation in the near future. (Source: Cross River Therapy)
A study by McKinsey & Company shows that AI holds the potential to contribute $13 trillion to the global economy by 2030.
According to a survey by MIT Sloan, most executives believe that AI will be a major competitive advantage for their business.
These statistics clearly indicated just how significant AI can become for the eCommerce sector.
Statistics Regarding Artificial Intelligence (AI) Usage
Well, AI adoption is already accelerating. In 2022 alone, 42% explored using AI for the first time.
According to a survey conducted by Adobe, 31% of top companies are already using AI to reach decisions. And guess what? The AI market holds a lucrative future. It is set to grow by 38% in 2023! (Source: Tractica)
Between 2021 and 2022, the AI market was projected to grow by 47%. And this upwards trend is going to continue year-over-year – increasing by at least 26% each year until 2025. (Source: Exploding Topics)
So, if you’re running an eCommerce business, AI can be your secret weapon to success. Well, AI for eCommerce can become the perfect tool that can help you understand your customers better, manage your inventory, and even answer customer questions 24/7. Sounds amazing, right?
Read on to see how we can use it to boost your eCommerce business. But before that one needs to understand the power of AI for eCommerce.
Why Care about AI for eCommerce?
So, do you want to take your eCommerce business to the next level? Integrating artificial intelligence (AI) might be the answer you’re looking for.
AI can help you improve various aspects of your eCommerce, right from improving your customer service to helping with sales data management and more.
Let’s delve deep to know the benefits.
The power of AI for eCommerce can’t be overlooked. At Wagento, we’ve discovered some amazing benefits of integrating AI into eCommerce. Here’s what we’ve found:
Right Product Recommendation
Imagine being able to offer a shopping experience that’s tailored to each customer’s preferences. That’s what AI does – it helps you to understand your customer’s behavior. So that you can recommend products they’ll love. It’s like having a personal shopper for every customer!
24/7 Personal Assistance
Customers often wish for a customer service rep who’s available 24/7. We recommend offering AI-powered chatbots for that wish. They’re always there to answer questions and solve problems, which means happier customers and more loyalty to your brand.
Effective Inventory Management
Managing inventory can be a headache, right? But with AI, we have seen it’s easy to predict sales trends and manage the stock more efficiently. No more worries about overstocking or running out of products.
Improved Shopping Experience
We all want our customers to have a smooth and enjoyable shopping experience. AI helps us optimize our website design and layout based on user behavior. It’s like having a personal guide for every customer.
Prevent Fraud Easily
Fraud is a big concern in eCommerce, but AI has your back. It can spot and prevent fraudulent transactions, making any eCommerce platform safer for everyone.
Great Prediction Strategies
Want to create marketing strategies that really hit the mark? AI helps to analyze customer data for identifying trends and patterns. It’s like having a crystal ball that shows us what our customers want.
Smooth Daily Operations
AI can also take over routine tasks like order processing and delivery scheduling. This means we can focus on what we do best – providing great products and service.
Integrating AI into Your eCommerce Business
It’s time to roll up your sleeves. Why? So that we can dive into the nitty-gritty of integrating AI into your eCommerce business. Let’s get started!
How AI Can Help You Personalize Your Customer Experience?
One of the most powerful ways that AI can be used in eCommerce is to personalize the customer experience.
AI can be used to track customer behavior, identify their interests, and predict their needs. This information can then be used to provide customers with personalized recommendations, offers, and content.
For example, an AI-powered eCommerce store might use customer data to:
- Suggest products that are like those that a customer has previously purchased or just viewed.
- Provide discounts on products that a customer is likely to be interested in
- Send personalized email marketing campaigns.
By personalizing the customer experience, AI can help you to increase sales, improve customer loyalty, and build stronger relationships with your customers.
How AI Can Help You Optimize Your Marketing Campaigns?
AI can also be used to optimize your marketing campaigns. AI can be used to track the performance of your campaigns, identify the most effective marketing channels, and target your ads to the right people.
For example, an AI-powered marketing platform might use data to:
- Track the performance of your website traffic, email campaigns, and social media ads.
- Identify the keywords that are most relevant to your target audience.
- Target your ads to people who are likely to be interested in your products or services.
By optimizing your marketing campaigns, AI can help you to reach more customers, generate more leads, and increase sales.
How AI Can Help You Improve Your Inventory Management?
AI can also be used to improve your inventory management. AI can be used to track inventory levels, forecast demand, and identify stock shortages. This information can then be used to optimize your inventory levels and ensure that you have the right products in stock when your customers need them.
For example, an AI-powered inventory management system might use data to:
- Track inventory levels in real-time.
- Forecast demand for upcoming sales events.
- Identify stock shortages and reorder products automatically.
By improving your inventory management, AI can help you to reduce costs, improve customer satisfaction, and increase sales.
Tools like Blue Yonder use machine learning to predict demand and automate restocking, reducing overstock and stockouts.
AI is a powerful tool that can be used to improve the performance of your eCommerce store. By using AI in eCommerce, get ready to personalize the shopping experience of customers, optimize your marketing campaigns, and even improve your inventory management.
In conclusion, integrating AI for eCommerce can bring numerous benefits to your business. So, what are you waiting for? If you want to leverage the power of AI for eCommerce, contact the professionals of Wagento today.
Take Professional Help
Want to make your eCommerce store smarter, more efficient, and customer-friendly? We’ve got you covered! At Wagento, we’re not just partners with Adobe Commerce, but with a host of AI technology companies.
We can help you experiment with AI, choose the right tools, and integrate them into your eCommerce platform. Get in touch with us now and let’s transform your eCommerce business together!
About the Author
Soumi Biswas is an experienced content writer at eWay Corp, with extensive experience in writing technical content related to eCommerce platfoms such as Adobe Commerce (Magento), BigCommerce & Shopware, web development, digital marketing and artificial intelligence.
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