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How AI Will Benefit eCommerce Business Owners

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Katie Melissa-Ecom Expert January 12, 2023
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How AI Will Benefit eCommerce Business Owners

As an eCommerce store owner myself, and owner of an eCommerce management company scaling hundreds of clients’ stores, I see the benefits of AI in my sector now and into the future. 


Artificial Intelligence (AI) is becoming increasingly important in the world of eCommerce, as more and more businesses are turning to technology to streamline their operations & improve customer experience. From chatbots that assist with customer service to intelligent algorithms that optimize product recommendations, AI is helping eCommerce business owners to grow and thrive in a highly dynamic market.


One of the main benefits of AI in eCommerce is the ability to personalize the shopping experience for customers. By analyzing data on customer behavior, preferences, and demographics, AI-powered systems can make personalized product recommendations, targeted promotions & customized product search results. Personalized product recommendations rely on AI algorithms to analyze data on the customer’s behavior & preferences.


These algorithms take into account a few factors, like the customer's browsing history, previous purchases, items added to cart & search history (if available). Based on this data, the system can then make tailored recommendations for products that are most likely to be of interest to the customer. This can increase sales by directing customers to products they might not have otherwise discovered & make them more engaged on the site, potentially resulting in repeat purchases.


One example of this is called collaborative filtering, an AI-based system that analyzes customer behavior data like browsing history, purchase history and ratings and reviews, to identify patterns & similarities between customers. This not only improves the customer experience, but it can also increase sales & customer loyalty. As someone who also loves to shop, I personally look forward to mass implementation of these AI-powered features on more eCommerce stores!


Another key benefit of AI in eCommerce that stands out to me is the ability to automate repetitive & time-consuming tasks. For example, chatbots can handle simple customer service inquiries, freeing up human customer service reps to focus on more complex issues. Similarly, AI-powered systems can assist with inventory management, pricing optimization, and fraud detection, saving time & resources for eCommerce businesses.


One of the most popular eCommerce platforms, and one of my personal favorites, Shopify, already has an App Store where different developers offer AI-based solutions for merchants. One of the most popular apps is "Product Recommendations" which uses machine learning to create personalized product suggestions for customers. Although this one has been around for a few years, there are much more cutting-edge AI apps on the market now and soon to be released for store owners. AI on Shopify stores can also be used to automate pricing, inventory management, customer service & email marketing to a large degree.


Third-party sellers on Amazon can also benefit from AI. Amazon's own algorithms & AI tools, such as the "Amazon Marketplace Web Service (MWS)" and "Amazon Personalize", can be used by sellers to optimize pricing, improve product rankings, and increase visibility. As well as these, there are third-party software (SaaS) companies that offer AI-based tools to help Amazon sellers increase their sales, optimize their product listings, and automate pricing.


To sum things up, the use of AI in the eCommerce space is becoming increasingly important as businesses strive to stay competitive in this ever-changing market. From personalizing customer experience to automating repetitive tasks, AI can help eCommerce businesses to grow & thrive in the years to come. As eCommerce becomes more important in our day to day lives, I believe the role of AI in optimizing and streamlining these processes will only become more crucial.



Photo Credit: Katie Melissa
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