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AI for Outstanding eCommerce Experiences

Valentina Gomez

Table of Content

eCommerce
How does eCommerce work?
How has eCommerce evolved?

Artificial Intelligence
How does AI work?
How has AI evolved?

Artificial Intelligence for eCommerce
Benefits of AI for eCommerce
Examples of AI for eCommerce
The Future of AI for eCommerce

Final Thoughts

Artificial Intelligence is changing the world, and eCommerce is booming. Moreover, AI is already part of shopping experiences. And that's only the beginning. So, what happens when you put them together? It's a match made in heaven! Hence, this article will discuss some ways eCommerce uses AI. Grab your cart, and let's go shopping!

What is eCommerce?

eCommerce is, in simple terms, digital commerce. It allows buyers and sellers to perform online transactions. It's a straightforward way for users to buy items without leaving home. As well it's an easy and cost-effective way for businesses to reach new markets. Most companies with online presence use digital platforms to handle operations and delivery.

Global retail eCommerce sales will top $5 trillion for the first time in 2022. According to eMarketer, this cipher amounts to more than a fifth of retail sales. Likewise, despite decreasing growth, spending will approach $7 trillion by 2025.

AI for outstanding eCommerce Experiences

How does eCommerce work?

eCommerce works by connecting buyers and sellers in virtual environments. Users can access these spaces via the internet, allowing them to shop from any location.

For buyers, the first step is registering on an online eCommerce platform, whether a web or an app. There, they can browse products or services listed by sellers. Buyers can select items, add them to the cart, and select payment methods. Most sites use data encryption like Secure Sockets Layer to protect sensitive information.

Once payment is complete, vendors receive the order confirmation and prepare its shipping. In this stage, retailers use several shipping methods. While the primary way is by mail carriers, there even are drones for delivery purposes!

How has eCommerce evolved?

Since the launch of CompuServe in 1969, eCommerce had a lot of progress. For instance, in 2022, Amazon generated 39.5% of all US eCommerce sales, roughly $2 out of every $5 spent online. Estimations predict online sales will account for 22% worldwide sales by 2023. The last analysis, in 2019, indicated a 14.1%. Further, digital wallets aim to be more than half of global eCommerce payments by 2024.

The fast expansion of eCommerce may be due to various factors, one of which is COVID-19. Stay-at-home regulations caused customer shifts, driving offline traffic to online retailers. As the need arose, a large number of eCommerce enterprises emerged.

In this context, Artificial Intelligence improves shopping for both sides. For businesses, it eases their operations in more efficient and cost-effective ways. Also, buyers can access more complete experiences when purchasing different products or services.

What is Artificial Intelligence?

Artificial Intelligence (AI) allows techs to simulate traits associated with human intelligence. For it, it applies algorithms and complex data models. As a result, devices improve functions like recognition, decision-making, and problem-solving.

How does Artificial Intelligence work?

With the fast pace of tech advances, it's no surprise that more companies rely on AI. But how exactly does Artificial Intelligence work? AI can process environment data, make data-based decisions, and learn from its mistakes. Its real-time data analysis gives helpful insights for operative purposes. These results enhance both internal and external business strategies. And, not least importantly, it focuses on trying to replicate human intuition.

How has Artificial Intelligence evolved?

First of all, AI's usage has quadrupled since 2017. Nonetheless, in recent years, the number of businesses using it has remained stable. As for 2022/2023, between 50 and 60 percent of enterprises use AI in daily operations.

The AI sector is maturing fast, and enterprises are acknowledging it. What's more, the full-scale deployment of all AI technologies is expanding. Besides cost saving, AI allows businesses to expand markets and innovate products.

AI for outstanding eCommerce Experiences

Artificial Intelligence for eCommerce

According to a HubSpot report, 63% of consumers are unaware that sites use AI technology. This study proves that you can use AI on your eCommerce site in indirect or unnoticed ways. We'll see some benefits and examples below.

What are the benefits of AI for eCommerce?

Operations Automation

One of the main benefits is its operations automation for various procedures. AI almost always outperforms its human equals in speed and accuracy. Beyond tech advances, AI functions 24/7, so it enhances all-day-long operations. Artificial Intelligence tech can also automate mundane tasks. By processing invoices or orders, it's easier for retailers to track their orders.

Business Cost Savings

This benefit comes hand-in-hand with the prior item. Using AI tech, businesses cut the need for work time and manual settings. In this sense, AI trimmers operational costs by automating tasks like inventory management. Also, AI-driven product guidance helps vendors to know what users are likely to buy. As a result, besides lowering costs, it also increases sales.

Real-Time Analytics

With AI-powered analytics, sellers get insights into customers' interactions with their businesses. In the meantime, they also gain valuable data. Hence, vendors can make better decisions on eCommerce optimization. Plus, AI algorithms can track stock levels in real-time. Thanks to it, retailers can ensure having enough items in stock when users make purchases.

Fraud Detection

AI-based Machine Learning can detect strange activity and transactions. This procedure is possible by evaluating millions of online transactions. With this info, AI models can create rules to prevent fraudulent transactions. Here, AI protects businesses from attempted fraud while also reducing revenue losses.

What is an Example of AI for eCommerce?

What started as a pipedream is now a reality. Artificial Intelligence has taken the eCommerce world by storm! From shopping bots to product recommendations, AI revolutionized how we shop online. Here are some examples of companies taking advantage of it:

Nike

The athletic shoe industry leader has also used AI to improve its eCommerce. Nike Fit is an app that lets customers find the right fit for their shoes while shopping online. The tool scans your feet with a smartphone camera. Then, it maps the measurement of each foot using a 13-point AI-programmed system. Hence, the more people use it, the more accurate it will become.

Walmart

Retail giant Walmart provides a virtual fitting room platform. To do so, it uses real-time picture technology and Artificial Intelligence. Walmart made significant moves into fashion by establishing new private-label products. Choose My Model is the debut rollout of Zeekit, a startup bought by Walmart. This tech lets shoppers see how clothes might fit without stores.

Amazon

Amazon always had a head start in using AI to improve the efficiency of its commercial processes. For instance, Machine Learning techniques drive its AI-driven recommendation system. This method aids in predicting beloved (and not-so-much) products or services. Also, the firm offers its own Amazon Personalize tool, available on AWS. It retains all customers' information and uses it to suggest products that suit them the best.

Another example is Amazon Go, created under the “just walk out” notion. This concept offers a chain of cashier-less stores all over the world. Here, customers leave without paying at a cash register after grocery shopping. This astonishing idea is possible due to AI tracking all items. When entering these stores, users scan a code to let the AI know they're there. Then, with sensors and cameras, it takes note of what things users grab. After buying, these systems calculate the total amount to pay. At the front door, sensors track the user's associated-to-Amazon credit card. Hence, it uses it as a payment method for the transaction.

Last but not least, the voice assistant Alexa may be Amazon's most known use of AI. The AI technologies used by Alexa record, track, and store all data input via voice commands. Later, it goes to its cloud, Alexa Voice Service (AVS).

AI for Outstanding eCommerce Experiences

What is the Future of AI for eCommerce?

Estimations state that online revenue will expand at a 14.56% annual pace. By 2025, this growth will mean a total market of $1,365 billion. This data shows that eCommerce is no fad!

The potential of AI tech in eCommerce is practically limitless. AI-driven automation revolutionized our online shopping. Processes are faster and more accurate than ever before. Needless to say, AI will continue to play a vital role in the future of eCommerce. Thus, companies should investigate and invest in AI research. In competitive and ever-changing industries, those who do not may fall behind.

Final Thoughts

AI is changing the eCommerce landscape as we know it. With AI-powered chatbots and assistants, businesses can automate services and provide better experiences. Also, AI can help with product recommendations, fraud detection, and inventory management. AI has already begun to play a significant role in eCommerce. Yet, its impact will only continue to grow in the years to come. Are you ready for the future of AI-powered eCommerce?


Knowing your way around different tech-related focuses is necessary for today's competitive markets. Yet, only a handful successfully blend different techs to create the next disruptive product. Let's be partners at the business summit! Check our work, ideas, and the worldwide A-list clients who trust us. Let's shape the future together!

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