The role of AI (artificial intelligence) is growing in all areas of life and economy, and ecommerce is no exception. Central Asia needs to remain abreast of the developments.
Forbes has recently published several articles about how AI is transforming ecommerce. [It is becoming commonplace to spell e-commerce as ecommerce.]
We have picked two of them because of the advice given in them that is directly usable.
AI Is Re-Shaping E-Commerce. Here’s How To Use It To Free Your Time And Focus On Growth
Elaine Pofeldt
9 June 2024, updated 10 June 2024
It’s not easy to be an e-commerce entrepreneur today. “This economy is becoming more difficult, especially for Amazon selling,” says Gary Huang, a veteran e-commerce entrepreneur and founder of the 7 Figure Seller Summit, a free online event from June 10-12, 2024. “It’s the markets maturing. It’s not as much of a land grab as it was before. Sales growth rates are flat this year.”
Enter AI. Many people who run e-commerce businesses, or want to start one, are dabbling in AI to leave behind low-value, repetitive work and improve profitability at a time of heightened competition. The global e-commerce market is expected to grow from $5.8 trillion to more than $8 trillion by 2027, according to market research firm Statista. As Shopify put it in a recent report on e-commerce trends, “Being agile has never been more important.”
But using AI is not as easy as it sounds, given the abundance of new tools to sort through, the flood of information coming from all sides, and the learning curve, notes Huang
So how do you put AI to work for you? Here are some ideas Huang shared on how you can use it.
Smarter pricing: Many sellers are afraid to raise their prices because they feel that they’ll lose their rank or competitors will undercut them, says Huang. AI can help. For instance, profasee, an AI-powered tool, can help you optimize your pricing on Amazon. “Think of it like Uber surge pricing, based on the demand for the product,” explains Huang. “It will find the optimal price for you, whether your goal is improved profitability or a higher ranking.”
More efficient market research: One AI-powered tool, Helium 10, lets you study a competitor’s listing and use the “review insights” feature to get ideas on how to compete. “Let’s say they have 1,000 reviews, ” says Huang. “The old way, you would have to manually go through 20 pages of reviews looking for two-star, three-star and four-star reviews and look for what customers are complaining about. That’s how you can find opportunities to improve products. Now you can use those tools to download the reviews and upload them into chatGPT. chatGPT can quickly tell you the biggest problems with your competitor’s listing.”
Better split-testing: This allows you to compare two options, such as two versions of an ad or web page, to see what customers like best. Intellivy, an AI-powered market research tool, lets you split-test your product, images and copywriting, against your competitors in front of a real shopping audience. “Think of it as a focus group that’s done online,” says Huang. “They can get real data on what some customers think about your product, what they like, and what is preventing them from buying.” You can also use it to evaluate dozens of customer polls. “It can instantly tell you what the biggest trends and product weaknesses are,” he says.
DIY product design: This is a multi-step process, and Huang hasn’t found a product that tackles them all. However, after doing your market research, you can use Midjourney with GPT-4 to do mockups, says Huang. Say you want to design a monster truck toy. “One quick hack for a layperson to use it is to do what I call a reverse prompt with chatGPT,” says Huang. “So with the monster truck analogy, you can take your competitor’s listing of the monster truck, and then you can upload it into GPT-4 and say, “I want to create a prompt in Midjourney to generate an even better kids’ monster truck toy splashing through water to demonstrate its waterproof-ability and make it attractive to kids and their parents.” You can take the prompt that results and put it into MidJourney to get the desired result, says Huang.
Improved profitability: Storing goods for a long time in a warehouse can cost you a lot. “Amazon doesn’t like their fulfillment centers used as a storage warehouse,” says Huang. “So smart sellers use good inventory management systems, often tied to their ecommerce software, reducing tedious tasks. “AI is a great way for sellers to do more with less to save time and to become more productive,” says Huang. “I’m not saying that AI can replace humans 100% but the trend is AI has become a tool you can use with your team. It can save time if you know how to use it properly.”
Elaine Pofeldt is the author of Tiny Business, Big Money (Feb. 15, 2022, W.W. Norton & Co.) and author of The Million-Dollar, One Person Business, a Random House book.
https://www.forbes.com/sites/elainepofeldt/2024/06/09/ai-is-re-shaping-e-commerce-heres-how-to-use-it-to-free-your-time-and-focus-on-growth/
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Next-Level Ecommerce: AI’s Secret Weapon For Personalized Experiences
Rhett Power
12 May 2024
As e-commerce competition intensifies and personalized shopping experiences reign supreme, businesses of all sizes are under increasing pressure to keep customers with short attention spans and precious little loyalty devoted and engaged. Artificial intelligence (AI) emerges as a pivotal ally in this quest, offering tools to craft hyper-personalized shopping journeys. Without a doubt, AI is reshaping the retail landscape by creating unique, tailored experiences that resonate deeply with individual shoppers.
Today’s AI technologies are sophisticated enough to analyze vast amounts of user data—ranging from browsing patterns and purchase history to click rates and time spent on pages. This data allows AI to understand nuances in consumer behavior, preferences, and even predict future buying actions. AI’s real prowess lies in its ability to leverage this data to personalize every aspect of the e-commerce experience at scale. From the moment a shopper enters an online store, AI begins curating a shopping experience uniquely tailored to that individual’s preferences.
At the core of AI-driven personalization are advanced algorithms and machine learning models that dynamically adapt to shopper inputs. Next-generation search platforms utilize these tools to refine product discovery processes, ensuring that each search or recommendation is precisely aligned with the shopper’s interests. These platforms are capable of real-time learning, which lets them continuously improve their accuracy and relevance based on ongoing user interactions.
One notable technology in the spotlight is dynamic pricing. This approach adjusts product prices in real time based on various factors, including market demand, customer profiles, and purchasing behaviors. This strategy is particularly effective in B2B ecommerce, where pricing can vary significantly based on pre-negotiated agreements and bulk purchasing.
Several B2B retailers have already seen significant success by integrating AI-driven personalization into their platforms. For instance, using GroupBy’s Inc.’s ecommerce solution, businesses have personalized search results and recommendations as well as pricing strategies that are tailored to individual customer agreements. This level of personalization ensures that B2B buyers receive the most relevant offers, enhancing satisfaction and building loyalty.
“AI models have advanced to the point where they are able to take in vast amounts of user behavior data to drive a 1:1 personalized experience in product discovery. Every search, browse, or recommendation query can be tailored to individuals at scale,” says Arvind Natarajan, director of product at GroupBy, a cloud-native SaaS platform provider that enhances ecommerce through advanced product discovery and search technologies. “Next-generation search platforms that use this kind of AI technology can drive a better, hyper-personalized shopping experience at scale for both B2B and B2C retailers and distributors in any industry or vertical.”
And hyper-personalization goes beyond making shopping convenient; it makes it memorable. AI-powered personalization ensures that customers are seen as individuals with unique needs and preferences. For example, by recognizing that a customer might need to refill their coffee pods or prefers a particular brand of accessories, AI can prompt timely recommendations that boost conversion rates and encourage repeat visits.
Personalized experiences foster a sense of being understood and valued, which in turn deepens customer engagement. Engaged customers are more likely to return and, crucially, to advocate for the brand to others. In this way, AI-driven personalization drives sales and builds a loyal customer base—the true mark of a successful digital commerce strategy.
As AI technology evolves, its capabilities in ecommerce will only grow more profound. Future advancements are expected to introduce even more nuanced personalization, possibly integrating augmented reality (AR) to provide shoppers with a try-before-you-buy experience online. Voice shopping via AI assistants and sophisticated chatbots that manage end-to-end customer service are also on the horizon, each offering a seamless, highly personalized shopping journey.
The role of AI in ecommerce personalization is indisputably transformative. As businesses continue to harness these advanced technologies, they will be better positioned to meet the ever-expanding expectations of their customers. For companies looking to thrive in the bustling world of online retail, AI is more than just a tool; it is an indispensable ally.
As we forge ahead, the intertwining of AI with ecommerce heralds a new era of retail—one that is deeply personal, immensely satisfying, and incredibly efficient. In this rapidly evolving marketplace, those who master AI-driven personalization will likely lead the pack, setting new standards for what shopping should feel like in the digital age.
Rhett Power Is the CEO and Founder of Accountability Inc., best-selling author, and the #1 Thought Leader on Entrepreneurship ranked by Thinkers360.
https://www.forbes.com/sites/rhettpower/2024/05/12/next-level-ecommerce-ais-secret-weapon-for-personalized-experiences/
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In Central Asia, the small business and individuals engaged in ecommerce would be well advised to find ways to share their knowledge and insight on harnessing the AI profitably.
The governments would need to step in to create ‘AI for ecommerce’ centres within the structures of their ICT institutes or any other similar organizations. /// nCa, 14 June 2024