Have you ever wondered how some eCommerce stores seem to know exactly what exactly you might be interested in? Or how they’re able to offer you personalized recommendations that are bang on? If so, then you’re already experiencing the power of AI for eCommerce.
AI is rapidly changing every aspect of our lives. Right from helping us find the fastest route home on our phones to recommending what movie to watch next. In short, artificial intelligence is making our lives easier. And it’s only going to become more prevalent in the years to come. But what does this mean for your eCommerce store?
Let’s get started!
AI Market Stats You Need to Know
According to a report by Statista, the global AI market is expected to reach a whopping $60 billion by 2025.
There is an expectation for a 40% increase in productivity by 2035 due to the growth of AI. (Source: Accenture)
80% of executives believe that automation can be employed in any decision. (Source: Gartner)
More than 40% of Brazilian companies are already using AI at some level during their commercial processes, and 34% are still experimenting with its use. (Source: IBM)
Additionally, IBM’s 2022 report, Global AI Adoption Index shows that more than 70% of IT professionals stated that their employers have increased their investments in artificial intelligence in recent years.
Now, you might be wondering how AI for eCommerce can revolutionize your business. Yes. Then you’re in the right place. In the remainder of this blog post, we will take you through the power of AI for eCommerce and how it can benefit your business.
AI & eCommerce
In the context of AI for eCommerce, it is all about using smart algorithms to automate and enhance various aspects of your online store.
From offering personalized product recommendations to efficient customer service, AI for eCommerce is transforming the way we do business online.
And how does it help your eCommerce business? Well, AI can help you improve your eCommerce operations in many ways. They are:
- By providing personalized recommendations, offers, and support to enhance customer satisfaction and loyalty.
- Increased conversion rates and average order value (AOV) by upselling and cross-selling relevant products. According to a recent survey by Gartner, almost 90% of consumers hinted that they want to see more personalization from brands. (Source: Monetate)
- By reducing costs and errors by automating repetitive and tedious tasks.
- Gaining insights and feedback by analyzing customer behavior and preferences.
- Staying ahead of the competition by adapting to changing market trends and customer expectations.
Let’s delve into how AI is making waves in the eCommerce industry in detail.
Integrating AI for Different Aspects of eCommerce Business
Surprisingly, AI can be used for different aspects of an eCommerce business. Let’s find out.
AI for Improved Search
Firstly, let’s talk about search functionality. You know when you type something into a search bar, and it magically suggests exactly what you’re looking for? That’s AI in action!
In fact, according to a report by Klevu, online stores that use AI for search saw 52% increased conversion.
Integrating AI for Search
Now, how can you add this magic to your own store? Well, it’s easier than you might think.
Step 1: We recommend you choose an AI-powered search tool for your eCommerce store. There are many out there, like Klevu or Loop54.
Step 2: Integrate it into your eCommerce platform. Most tools come with easy-to-follow instructions, so you don’t need to be a tech wizard to do this!
Step 3: Test it out! Make sure it’s working well and making your search better.
And voila! You’ve just taken a big step towards making your eCommerce store smarter and more customer friendly.
Now that we have mastered AI-powered search, let’s make your eCommerce store feel like a personal shopping assistant!
AI for Personalization
Firstly, let’s talk about personalization. It’s like walking into your favorite store and the shopkeeper knows your name and exactly what you like. According to a study by SmarterHQ, 72% of consumers say they only engage with marketing messages if they are tailored to their interests.
So, how can AI help? Well, AI is like that shopkeeper, but it’s working in your online store. It can learn from each customer’s behavior and preferences to show them products they’ll love. Imagine your customer looking for running shoes and your website shows them the perfect pair in their size and favorite color!
Implementing AI for Personalization
Now, you might be wondering, “How do I get AI to do that in my store?” Good news! There are tools like Dynamic Yield or Adobe Target that can help you add AI-powered personalization to your store. As an Adobe Partner, Wagento can help you integrate any Adobe products for your store.
Step 1: Choose a tool that fits your needs and budget.
Step 2: Integrate it into your eCommerce platform. Most tools offer guides to help you do this. In case, you need help with this task, contact our professionals.
Step 3: Test it out and see the magic happen!
And there you have it! You’re one step closer to making your eCommerce store a personal shopping paradise. Let’s keep going!
We’ve personalized our store with AI. Now, let’s make customer service a breeze with the help of our new friends, chatbots!
AI for Customer Service: Chatbots
Firstly, what’s a chatbot? Imagine a friendly helper who’s always ready to answer questions, help customers find products, or even take orders. That’s a chatbot!
In fact, according to a Forbes Advisor survey, 73% of businesses have plans to use chatbots for instant messaging.
Now, why are chatbots so great? Well, they’re like superheroes. They can handle lots of queries at once, they’re available 24/7, and they never get tired.
Plus, they can help customers in real-time, which means no more waiting for email responses or callbacks. Sounds amazing, right?
Implementing AI for Customer Service
So, how can you get a chatbot for your store? Don’t worry, it’s not as complicated as it sounds.
Step 1: Choose a chatbot platform. There are many to choose from, like ManyChat or Chatfuel, and so on. Just like Gorgias is for the Shopify platform. Keep in mind that they all have their own strengths.
Step 2: Set up your chatbot. This usually involves creating a script for common questions and responses.
Step 3: Integrate your chatbot into your eCommerce platform. Most chatbot platforms offer guides to help you do this.
Step 4: Test your chatbot and make sure it’s ready to help your customers.
And there you go! You’ve just added a super-powered customer service assistant to your team. Let’s keep the momentum going!
Alright, friends! We’ve got personalized shopping and super chatbots. Now, let’s make sure we never run out of our customers’ favorite products with AI-powered inventory management!
AI for Inventory Management
Firstly, let’s talk about inventory management. It’s like keeping track of all the toys in a toy store. You need to know what’s selling fast, what’s not, and when it’s time to order more. In fact, according to a report by McKinsey, AI can reduce stockouts and overstocks by up to 50%.
So, how can AI help? Well, AI can predict when you’ll run out of a product before it happens. It’s like having a crystal ball that tells you, “Hey, those blue sneakers are selling fast. Time to order more!”
Sounds cool, right?
Integrating AI for Inventory Management
So, how can you use AI for inventory management in your store? Here’s how:
Step 1: Choose an AI-powered inventory management tool. There are many out there, like EazyStock or Slimstock.
Step 2: Integrate it into your eCommerce platform. Most tools come with easy-to-follow instructions.
Step 3: Set up your tool with your product information and let it start predicting!
And there you have it! You’re now a step closer to running a smarter, more efficient eCommerce store. Let’s keep going!
We’ve got personalized shopping, super chatbots, and smart inventory management. Now, let’s make shopping even more fun with AI-powered product recommendations!
AI for Better Product Recommendations
Firstly, let’s talk about product recommendations. You know when you’re shopping online, and the store suggests other items you might like? That’s product recommendations!
In fact, according to reports, a recommendation engine for eCommerce can boost sales. For instance, personalized product recommendations account for up to 31% of eCommerce revenues. (Source: Hyperon)
“Product recommendations account for up to 31% of eCommerce revenues. On average, customers saw 12% of their sales attributed to our product recommendation product” – Barilliance Research”
So, how can a product recommendation tool like Adobe Commerce’s Product Recommendations help?
Well, AI can learn from each customer’s shopping habits to suggest products they’ll love. It’s like when your friend knows you love sci-fi books and suggests the latest bestseller!
Integrating AI for Product Recommendations
Now, how can you add AI-powered product recommendations to your store? Here’s what we suggest:
Step 1: Choose a tool that offers AI-powered product recommendations, like Recombee or Clerk.io.
Step 2: Integrate it into your eCommerce platform. Most tools offer guides to help you do this.
Step 3: Set up your tool with your product information and let it start suggesting!
And there you go! You’ve just made shopping at your store even more fun and personal. Let’s keep the momentum going!
According to a study by Accenture, 91% of consumers are more likely to shop for brands that recognize, remember, and provide relevant offers and recommendations to them. (Source: Wunderkind)
Hence, it’s a no brainer that personalized experiences are becoming an integral part of the eCommerce business.
Now that we know what AI is, let’s see why it’s so crucial for eCommerce operations.
Reason to Integrate AI into Your eCommerce Business
Wondering about the power of AI for eCommerce? Here are just a few of the ways AI can be used to benefit your eCommerce business:
Enhanced Customer Service
Ever thought of providing 24/7 customer service without hiring a round-the-clock team? AI for eCommerce makes this possible. AI-powered chatbots can handle common customer queries, freeing up your team to handle more complex issues.
Efficient Operations
AI for eCommerce can automate routine tasks, from order processing to customer follow-ups. This leads to increased efficiency, cost savings, and allows you to focus on growing your business.
Improved Decision Making
AI for eCommerce is a goldmine for marketers to gather data-driven insights. It can process vast amounts of data to provide valuable insights that can inform your business decisions. Whether it’s predicting future sales trends or identifying popular products, AI for eCommerce can help you make smarter, data-driven decisions.
Personalized Shopping Experience
AI can analyze your customers’ behavior, preferences, and past purchases to provide personalized product recommendations. This means your customers get what they want, when they want it, leading to increased customer satisfaction and loyalty.
Integrating AI into Your eCommerce Business
As a business owner, you might be looking for some ways to harness the power of AI for eCommerce. Isn’t it?
Here are some steps to integrate AI for eCommerce business.
Define Your Strategy
Start by identifying the areas where AI can add the most value. This could be improving customer service, personalizing marketing campaigns, or optimizing operations. Your AI strategy should align with your overall business objectives.
Identify Relevant Use Cases
Once you’ve defined your strategy, identify specific use cases. For instance, if you want to improve customer service, a use case could be implementing an AI-powered chatbot. Sephora, for example, uses a chatbot to offer personalized product recommendations and makeup tutorials, enhancing the customer experience.
Leverage Expertise
AI implementation can be complex, and it’s crucial to have the right expertise on board. Consider partnering with experts for the smooth and successful implementation of AI tools for your business. At Wagento, we can help implement and integrate the right tools for your business.
Implement and Iterate
Once you’ve defined your strategy, identified use cases, and gathered your team, it’s time to implement. Remember, AI is not a one-time project but a continuous process of learning and improvement. Regularly review and adjust your strategy based on performance and feedback.
In essence, artificial intelligence is not just a trend; it’s a game-changer in the eCommerce industry. As a business owner, leveraging AI can help you deliver a superior customer experience, make data-driven decisions, and streamline operations, giving your brand a competitive edge.
So, what are you waiting for? Start your AI journey today and propel your eCommerce brand into the future.
Our Thoughts
Artificial Intelligence or AI is a powerful tool that can improve the customer experience, increase sales, and reduce costs for any eCommerce business. However, one should be very careful while considering the AI tools for their business. Why? Only with the right tools you can make the most of this technology and achieve your business goals easily.
Wagento to Help
Ready to revolutionize your eCommerce business with AI? At Wagento, we’re experts in making this happen. As partners with Adobe Commerce and other leading technology companies, we have the tools and expertise to help you integrate AI into your eCommerce store seamlessly.
Don’t wait to give your business the competitive edge it deserves. Schedule a consultation to start your AI journey with Wagento today!
