Generative AI in eCommerce: 7 Ways You Can Use AI to Stay Ahead of the Game

Do you know that eCommerce is the fastest-growing sector? It achieved a global scale of 5.7 trillion the year before 2024. No wonder most startup companies want to enter the industry to scale their business. Online shopping has picked up pace, especially after covid. But with convenience comes the challenges. Confused?

Of course, online shopping offers ease and convenience, but it poses issues for eCommerce sites that find it hard to put forward customized experiences and handle large product lists.

While virtual trials and voice-enabled shopping assistants are a hit, there is more you can do with generative AI. Gen AI is a powerful technology that can turn your challenges into scalable growth opportunities.

If you do so, it will help increase your business twice as great. Let’s dive deep into this topic and see what Gen AI does to help you in your e-commerce field.

Gen AI in E-commerce

First, it is important to note that Gen AI operates based on human interaction and data. Once it learns the information, it learns how to assemble the data. Additionally, it relies on human prompts to know the information to scan and access further.

It uses artificial intelligence to create different data, designs, or content for online shopping. Besides studying existing information, it can create new things.

For instance, Gen AI can apply the techniques of machine learning to generate new images and videos with regard to shopping. Amazon has virtual fitting rooms, and the Shopify magic tool helps to write product descriptions.

The best thing is that it produces personal recommendations, product descriptions, and videos. According to a report by Gartner, Gen AI will generate 30% of marketing messages in the sector.

This integration with Gen AI will help the E-commerce business sustain for a long, of course, with added benefits. Now, let’s see 7 ways to use the technology.

  1. Dynamic Pricing Options

How will you decide on dynamic pricing options for your E-store? As you can see, by checking the current trends of the market. However, Gen AI does even more about the trends. It considers all of the above, including competitors’ prices, historical sales data, inventory levels, holidays, weather, and what people are looking to buy. It analyzes the prices with the help of all these parameters, which could assist you in deciding the best price for your product.

Have you ever noticed that the price of a flight on an airline’s website changes now and then based on holiday bookings and season time? These websites automatically update the prices depending on the factors above. Following the dynamic pricing approach, most stores have integrated with Gen AI for the best options in pricing.

  1. AI-powered Customer Service

If you run an online store, you understand customer service is quite important. Your site tends to be recommended by satisfied customers more, but handling many customers becomes frantic. As per recent research, 72% of company executives believe AI will be widely deployed in their organizations within the span of two years. Thanks to AI chatbots and gen AI-powered customer service: you can now manage more customers in a single click.

AI chatbots can understand customer questions and provide relevant answers to queries. Gen AI-powered chatbots can understand customer behavior and gather past conversations to provide the best answers. Above all, chatbots can help customers 24/7, even if the store is closed.

  1. Advanced Security Enhancements

The most significant concern for online stores is security, and global E-commerce fraud is on the rise, with losses amounting to 48 billion dollars in 2023. The figure indicates the significance of security measures for online stores.

Gen AI systems can detect fraud and enhance security systems. Most Gen AI tools can check daily money transactions and alert if something strange is happening.

In large eCommerce stores where money circulates every day, AI will be able to keep an eye on all of the money transactions. Additionally, the tool may alert the store about possible security threats. Using Gen AI can protect your E-store and data with advanced security options. 

  1. Auto Content Creation

Content creation is a big pain for E-commerce stores. Well, it’s just so tiring to write descriptions of products. Gen AI will help you automatically create various types of content, from product descriptions, categories, pictures, and videos.

The tool studies various writing styles to develop customized content for your E-commerce store. Moreover, it can write social media and marketing posts, which is once again a pain for the stores.

For instance, large E-stores like Alibaba utilize the Gen AI content tool in order to describe millions of products on their site. Moreover, all the descriptions are elaborate and contain all the requisite information that the customers would need to know.

  1. Customized Product Recommendations

As a customer, it’s really difficult to decide – what to buy especially, if the specifications are unclear. Researching, evaluating, and purchasing process may take a lot of time.

Gen AI considers customer information in the form of what they buy, where they live, and what they search. Based on these aspects, Gen AI makes recommendations on a type of product.

Considering the example of Netflix, have you noticed that it suggests similar shows to what you have watched before? Similarly, when you shop in E-stores, it shows similar products or products that you might be interested in buying. 

  1. Virtual Trials and Fittings 

Visit an online store, and the first thing you would want to try is virtual fittings. Virtual trials have become the latest fad in eCommerce shopping. Rightly so, most people can virtually see how the product will look on them after buying. 

With Gen AI, customers can digitally experience – how a product would look in their space. Most big online stores have the picture upload option, where you can upload the space picture and see how the product fits in. So, before buying furniture, you can see how it will look in that corner of your house. Isn’t that great? Integrate with the feature to scale your E-commerce business. 

  1. Understanding Important Analytics 

In this data-driven world, understanding data is quite a task. You can gather customer data, but understanding it is essential. Generating information about customer performance and behavior from E-commerce stores can help you determine store performance. 

Gen AI tools can help you understand data insights. Using the data, you can adjust strategy and customer behavior. AI can be the missing link teams can use to gauge the effectiveness of marketing strategies. 

Data is vital for business, but how you use it is also significant. Gen AI can keep you ahead with different data-driven strategies. 

Integrate with Gen AI tools, 

If you plan to integrate with Gen AI tools, you must identify use cases and business goals. It’s essential to prepare a list of goals where you think the technology will fit in, like customer suggestions, tracking insights, creating store content, etc. 

Also, settle on a Gen AI model that your team can handle. The setup should be simple and should integrate with your business needs. After getting your data ready, you can start with training the gen AI model. 

However, ensure that the information is organized. In addition, you can use Gen AI to automate routine accounting tasks and expenses. If you use gen AI with VR and AR, it will make shopping fun for customers. 

With Gen AI, you can create better product images and designs. In the future, Gen AI will make shopping expedient and coherent. Are you a part of this change already? 

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