Curious about AI use cases in eCommerce? You're not alone. There's a reason artificial intelligence is such a hot topic lately.
As advancements are being made at an exponential pace thanks to OpenAI, ChatGPT, and the like, we can do more with AI today than ever before. And this evolution doesn't seem to be slowing down any time soon.
With that in mind, how can online sellers utilize artificial intelligence to their advantage? Keep reading to discover 10 specific ways you can use AI in your eCommerce business.
Benefits of AI
From large online retailers to eCommerce startups, every web-based business can benefit from AI. Just a few of AI's potential advantages for eCommerce industry pros include:
- Saved time and reduced manual effort
- Improved customer service
- Lower customer churn
- Increased sales
- Better reviews
- Higher profits
- Brand growth
And the list doesn't stop there. If you want to dive deeper into why you should be using AI in your business, check out our recent article: The Groundbreaking Benefits of AI in eCommerce.
The Evolution of AI
Most of us use AI every day in the form of virtual assistants such as Amazon's Alexa or Apple's Siri. We also monitor vitals, sleep patterns, activity levels, and more with wearable AI like the Fitbit and other smartwatches.
But when it comes to business, the first thing that jumps to mind when someone mentions "AI" is the chatbot. And thanks to ChatGPT by OpenAI, this area of innovation has taken off like a rocket in recent months.
Launched on November 30, 2022, ChatGPT became the most quickly adopted tech software of all time when it amassed 100 million users in its first two months.
The way this software works is in its name, which stands for “Chat Generative Pre-trained Transformer.” Unlike older voice-assisted AI tools, such as the aforementioned virtual assistants, ChatGPT is built around a Large Language Model (LLM).
While we'll spare you all the technical details, this AI tool is trained by both supervised learning and reinforcement learning in a technique known as “reinforcement learning from human feedback.” Put simply: these approaches both use machine learning in combination with human trainers. The process makes ChatGPT capable of the most human-like communication we’ve ever seen in artificial intelligence up to this point.
AI Use Cases in eCommerce
Once you grasp the benefits of AI, as well as how advanced the technology has become, what can you actually do with it? In short, a lot. Here are 10 ways you can use AI in your eCommerce business.
Enhance customer service
Enhancing customer service is one of the most important AI use cases in eCommerce. AI-powered technology and email tools can quickly provide answers to common customer inquiries. This frees up time for you and your employees to focus on growing your business or handling more complex tasks. AI solutions also enable customers to get help 24/7, meaning they don’t have to wait around for an answer from a live person.
Rest assured, we aren't suggesting that you only use AI to provide customer service. Instead, AI enables you to perform the all-important initial "triage" on customer queries. By using AI, you can make sure customers receive an immediate, relevant response to their questions or concerns. If the question is a simple one, the AI response may be all that is needed. In which case, the customer gets an answer quickly and walks away satisfied.
On the other hand, if the issue is more complex, the customer will still have received an immediate, relevant reply from your AI system until a human agent can take over. Either way, your AI-powered solution will save you time and reduce the effort required from your agents, while making sure customers are kept happy and response times are quick.
Plus, today's AI tools can do much more than just respond intelligently to queries. They can performs tasks such as deducing customer sentiment so your human agents know exactly how to approach customer interactions.
Curious about what we're doing to stay at the forefront of AI in customer service for eCommerce? Stay tuned; we've got big news coming soon!
Provide personalized product recommendations
AI can also be used to deliver more personalized product recommendations and customer experiences.
By tracking and collecting data on customer preferences and online shopping behavior, AI-powered algorithms can suggest products that potential customers may be interested in purchasing. This can help increase sales or reduce cart abandonment by offering customers products they’re more likely to buy.
The same AI tools can be used to offer discounts, promotions, and other perks that are tailored to each individual customer.
Recent data from Barilliance shows that average order value (AOV) can be increased by a massive 369% when customers engage with just one product recommendation. So, do yourself a favor, and use AI to provide more individualized, engaging recommendations.
Improve search on your website
Another useful AI use case in eCommerce is to improve search on your website. AI-powered systems can be used to provide more accurate and intelligent search results, allowing customers to quickly and easily find what they're looking for.
Much like personalized recommendations, AI search algorithms can also analyze customer behavior and preferences to provide more personalized search results that are tailored to each individual customer.
AI even makes it possible for shoppers to use image recognition software to search for relevant products similar to ones they've seen online (this is a popularly used feature on Pinterest). Customers can also search for products by voice thanks to natural language processing AI technology.
Automate order fulfillment
A recurring theme with AI is how it can be used to save time and effort while improving accuracy. This brings us to our next use case: utilizing AI to automate the order fulfillment process.
By automating order fulfillment, you can enable faster and more accurate order processing. AI can also be used to identify any discrepancies in orders, such as incorrect product details or unavailable inventory. It can then alert staff of any issues that need addressing. This helps to reduce customer service inquiries and increase customer loyalty.
Hone your pricing strategy
AI can also help eCommerce brands fine-tune their pricing strategy. AI algorithms can be used to identify competitive product prices, compare pricing data across different channels, and set dynamic prices based on customer preferences and behavior.
This helps ensure that your store’s prices are competitive. It also maximizes revenue potential. By using AI to analyze past sales data and competitor strategies, online business owners can adjust their own strategies for better results.
Eliminate fake reviews
One of the most interesting AI use cases in eCommerce is the ability to eliminate fake reviews. You can use AI to scan and detect fraudulent reviews on your website, so you can remove them and ensure customers only see honest opinions about products. This helps to foster trust and improve the online shopping experience, leading to higher conversions and more sales.
On a similar note, AI can also scan social media sites and other platforms for specific trigger words. This can help you stay aware of any complaints being made about your business, so you can quickly address them and protect your brand's image.
Seamlessly communicate with customers globally
A big part of growing your online business is serving customers around the world. Today's AI solutions allow you to easily communicate with customers globally.
AI-powered technology can be used to provide customer support in multiple languages, allowing store owners to quickly and effectively respond to customer inquiries from all over the world. By utilizing machine learning and natural language processing (NLP) algorithms, AI technology makes it easier to understand complex queries in different languages, helping to bridge the language barrier and provide a more seamless customer experience.
Write content for websites, product descriptions, etc.
Content writing is an important AI use case in the eCommerce industry that can help increase sales and boost profits. AI can be used to generate engaging content for websites, product descriptions, blog posts, and other marketing materials.
Content generated by AI algorithms can be tailored to the target audience of your eCommerce brand, helping you reach your desired customers more effectively. By providing consistent, relevant content on a regular basis, eCommerce stores can increase engagement and drive more sales.
Note: Like many of our other use cases, we aren't saying you should exclusively use AI to write content. Instead, these tools can help you save tons of time researching and writing the bulk of your pages, which you can then tweak to ensure they flow properly, contain no mistakes, and capture your brand's tone.
Predict demand and trends to manage your inventory
AI can also be used to help eCommerce sellers better predict demand and identify trends. By collecting customer data such as shopping behavior and purchase history, AI algorithms can determine what products are selling, how often items are purchased, and what customers like or don’t like.
This can help brands make decisions on inventory management, pricing strategies, marketing campaigns, and more.
Empower your customer support agents
We've already touched on how AI can improve customer service. It can also help you empower your customer support representatives by providing them with real-time data to quickly answer customers’ questions.
For example, AI can analyze customer inquiries to determine intent and suggest relevant solutions based on past conversations. This helps you reduce wait times and quickly resolve customer issues.
Your agents work hard to keep shoppers happy. Arm employees with the tools and information they need to do their jobs more confidently, effectively, and easily.
AI Use Cases in eCommerce: Final Thoughts
Artificial intelligence is rapidly transforming the way businesses operate, and eCommerce brands are no exception. By leveraging the power of AI, online stores can automate order fulfillment, improve product recommendations, tailor customer experiences, and much more.
Ready to boost sales and profits while simultaneously improving customer service, saving time, and reducing manual effort? It all starts with centralizing your customer support. With eDesk, you can consolidate the customer messaging from all your marketplaces, websites, and communication platforms into a single inbox.
Our smart automation features, time-saving templates, seamless organization, and more will help you crush customer support and smash SLAs.
Plus, we have our finger on the pulse of the AI revolution, so you can rest assured we are working hard to deliver the most advanced, intelligent eCommerce customer service interface on the market today. (Stay tuned for HUGE news coming soon!)
Ready to gain a competitive edge that will make a major difference in the success of your online business? Try eDesk free.