Artificial intelligence is transforming the way ecommerce businesses operate, from automating repetitive tasks to predicting customer behaviour. AI has proven to be a game-changer for businesses looking to increase their ecommerce revenue. “No two businesses are the same and bespoke solutions are the best way to ensure that the ecommerce strategy supports the overall business goals of the company,” says Joel Rendle, ecommerce strategy expert.
Here are 10 aspects of AI-powered strategy to consider:
- Personalised recommendations: AI algorithms can analyse a customer’s past purchases and browsing history to suggest products they’re likely to be interested in. According to a study by Accenture, 91% of consumers are more likely to shop with brands that offer personalized recommendations.
- Dynamic pricing: AI can help optimize pricing based on real-time market demand, inventory levels, and competitor pricing. This strategy can help increase revenue by maximizing profits while remaining competitive.
- Chatbots: AI-powered chatbots can provide 24/7 customer support, answering common questions and even processing orders. This strategy can improve customer satisfaction and drive sales.
- Upselling and cross-selling: AI can analyse customer purchase history to suggest complementary products or upgrades that could increase the average order value.
- Product bundling: AI can analyse customer behaviour and purchase history to identify which products are frequently purchased together. Bundling these products can increase the perceived value for customers and boost sales.
- Abandoned cart recovery: AI can help recover lost sales by automatically sending targeted reminders and offers to customers who have abandoned their cart. According to Barilliance, abandoned cart emails have an average open rate of 45%, and a click-through rate of 21%.
- Predictive analytics: AI can analyse customer data to identify patterns and predict future behaviour, allowing businesses to personalize their marketing and product recommendations.
- Inventory management: AI can analyse sales data and forecast demand to optimize inventory levels, reducing the risk of stockouts and overstocking.
- Fraud detection: AI can analyse customer behaviour to detect and prevent fraudulent activities, reducing the risk of chargebacks and lost revenue.
- Image recognition: AI-powered image recognition can help customers find products they’re looking for by analysing product images and matching them with similar products in the inventory.
Incorporating AI into your ecommerce strategy can help increase your revenue and improve your customer experience. However, it’s important to choose the right AI-powered solution for your business needs and to integrate it properly into your existing systems.
As Ronny Max pointed out in a recent Forbes article, “Businesses should remember that AI technology is not a magic solution, but a tool that can be used to improve specific areas of a business.” Therefore, businesses must carefully evaluate their AI options and choose the ones that align with their specific goals and objectives. Joel Rendle, expert for ecommerce business strategy, reminds business owners and programme managers that all these ideas are only going to be useful if they tie into a holistic strategy.
The benefits of AI in ecommerce are clear. By using AI-powered strategies like personalized recommendations, dynamic pricing, chatbots, upselling and cross-selling, product bundling, abandoned cart recovery, predictive analytics, inventory management, fraud detection, and image recognition, businesses can increase their ecommerce revenue and stay competitive in an ever-evolving market.