5 Top Ways AI Is Transforming Ecommerce w/Examples

The growth of artificial intelligence (AI) tools and software over the last year has been immense. It has started to change how many businesses and corporations think and operate. Ecommerce is among these, and AI has transformed it beyond what it used to be.

According to ecommerce SEO agency experts, here are five ways that AI is changing ecommerce,:

1. Aggregate and optimize product prices.
2. Offer personalized product suggestions.
3. Predict and prescribe optimal inventory.
4. Assist and guide leads and customers.
5. Update all of your product descriptions.

There is a lot to discuss, so get ready to take notes.

Let’s go!

Want to learn more about the Digital Authority Partners approach to SEO? Watch this video!

Five Ways an Ecommerce Business Can Apply AI

AI has many critical applications in ecommerce. For instance, one of the more common issues in ecommerce search engine optimization (SEO) strategies is collecting data and retargeting leads. AI solves both problems (not always at once) with greater processing power.

Here are five ways that your ecommerce business can apply AI, along with a few realistic examples:

     1. Aggregate and Optimize Product Prices

Ecommerce comes in many shapes and forms, one of which is that the platform sells other businesses' products. In these cases, people want to know the best deals for their specific wants and needs. Filters help, but AI has the ability to move the process along even further. 

A well-made and well-programmed AI is able to scour multiple competing sources for prices and list all of them while simultaneously arranging the results according to price. It effectively reduces users' search time and makes your ecommerce business a viable solution to their problems.

Example: Skyscanner and similar services (metasearch engines) are prime examples of this type of AI. They combine the data from different hotels or airlines and, in real time, compare and arrange them for the user's benefit. The result is lower fares for users.

     2. Offer Personalized Product Suggestions

Another way that AI has changed how ecommerce operates is by creating better and even more personalized suggestions that match the person’s wants based on their behavior. It can even help optimize keywords for your product listings to keep them visible online.

This is crucial because it affects the user experience (UX) with your business, and the better the UX, the more leads that you are able to attract and possibly convert. This is not to say that personal product listings please everyone. Some users might instead see it as an invasion of their privacy.

Example: Many shopping apps such as Shein depend on user behavior (such as the types of products that they look at) to curate personal suggestions for users. Even apps, such as Instagram that integrate shops, view ad interactions as vital user behavior data and accordingly adjust suggestions. 

     3. Predict and Prescribe Optimal Inventory

One thing that you might struggle with as an ecommerce business is keeping a reasonable level of inventory. You cannot stock up on all items at once unless you have a massive amount of space in which to keep them. AI solves this issue by looking back at your data and finding answers.

Your shop’s sales history is a rich source of crucial data that tells you what items you may want to stockpile, reduce, or even discontinue. In other words, with AI data analysis, you have the capability to predict what items you might need to keep on hand. It can also prescribe other items that may sell well alongside them based on the data.

Example: Going back to online retail stores, it is difficult to know what items perform well without analyzing data, and even then, the process is tedious. Using AI is a great way to simultaneously solve both problems and remove any further burden on your team. AI analysis helps you create a win-win.

     4. Assist and Guide Leads and Customers

Chatbots have been one of the most convenient and valuable types of AI to flourish over the past year. Any reliable ecommerce SEO agency will tell you that chatbots are becoming increasingly important to websites, as they fulfill vital roles in customer support.

How effective your chatbot is at its job depends on how well you program it. This does not mean that you should take too long to optimize it, as this is something that you can do as it progresses. In other words, like people, it develops and grows. 

Example: Hewlett Packard’s virtual assistant chatbot is an excellent example of this type of AI in practice. It works as a support system for users who want information, a marketing tool to inform buyers of deals, and a means to boost branding by sharing HP’s recycling program. All of this is possible with this form of AI technology.

     5. Update All of Your Product Descriptions

An expert ecommerce SEO agency knows that product descriptions are vital not only to SEO but also to making a sale. What and how you write about an item affects how a potential customer may perceive it. Your tone, word choice, and style all have a significant effect.

The wording must be just right to maximize the benefits and improve your sales. AI, in particular generative AI, helps by putting together drafts that give you ideas to use as well as aids in assisting with editing. Either way, AI is a quick way to write a better product description.

Example: Many sellers who use platforms such as Shopify know that you need to sell the idea of the product to make a sale. In other words, product descriptions attract customers and can even influence their decisions. AI helps you find the right tone and style to convert more leads.

Summing Up

AI has a strong presence in many industries and businesses, so it is no surprise that it is increasingly changing ecommerce too. AI significantly boosts viability in a crowded and saturated market, from chatbots to smart pricing. Starting small with AI is a great way to change how you operate your business. 

Need help adding AI to your ecommerce business? Contact Digital Authority Partners (DAP) to learn how we can help.