How to use AI in e-commerce?

AI
Paweł WiszniewskiPaweł Wiszniewski
Published: 12.10.2023
12 minute

As recently as five or even three years ago, few people thought about automating their work with the help of AI. Today, we are able to perform almost every repetitive activity and simple tasks instantly with the help of artificial intelligence. This is especially evident in the e-commerce industry, which is one of the fastest growing industries in recent years. In it, AI is becoming not only an optimization tool, but even a key element that can determine the success or failure of an online store..

 

Tools using artificial intelligence can help with personalizing offers, automating customer service, and are even capable of performing advanced analytics and creating pricing strategies – the possibilities are almost endless. But how do you actually use these advanced technologies in practice? Despite appearances, it’s quite simple 🙂.

 

In this article, we’ll take a look at how AI and machine learning can revolutionize how you run your online store and how you can use the tools to increase efficiency, sales and customer satisfaction. .

 

How to start using AI in e-commerce?

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Before you start using AI in your online store, it’s worth understanding what it really is and what you need to know to implement it in your e-commerce. In a nutshell artificial intelligence is a technology that mimics human thinking and learning processes. It enables machines to perform tasks that would normally require human involvement..

 

You can read more about it in the text Basics of AIa guide to the capabilities and applications of artificial intelligence.

 

In e-commerce, artificial intelligence refers to the use of algorithms and machine learning models to automate and optimize various aspects of e-commerce. It allows e-commerce stores to offer a more personalized and qualitative experience to their customers, as well as automate many business processes.

 

AI in e-commerce | machine learning | graphics | Senuto

 

Since you already know what AI is, we can now discuss the steps necessary to implement this technology in your online store. Here they are:.

 

  1. Needs analysis. First, identify the areas where AI could benefit the most. This could include areas such as customer service, data analytics or inventory management. This is actually the starting pointwhich is extremely important, as it will determine how you proceed further.
  2. Choosing tools.There are various AI-based tools available on the market. Choose the ones that best fit your needs. Later in this article, you’ll find popular tools from different verticals that can give you a hint.
  3. Integration and Testing. After selecting the tools, conduct their integration with your system and test their performance. It is worth noting here that this step is not always easy, because some tools require basic programming knowledge.
  4. Monitoring and optimization. After implementation, regularly monitor the effects and make necessary optimizations. AI is a technology that can learn on its own to some extent, but human-implemented improvements are, for the time being, irreplaceable.
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Benefits of using artificial intelligence in an online store

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You already know that applying AI to an online store not only automates many processes, but also opens the door to a number of benefits that can significantly impact customer satisfaction and sales of your store. But what specifically can artificial intelligence help us with? .

 

Here are some examples..

 

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    Increase efficiency

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One of the biggest advantages of applying AI to e-commerce is to increase operational efficiency. Automating various processes, from inventory management to customer service, can significantly reduce costs and labor time. .

 

Example: Using AI to manage your inventory can help you predict which products will be most popular in a given season. This can help you optimize orders and minimize inventory costs. Some AI systems can even automatically place orders with suppliers when inventory levels reach a set level..

 

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    Personalization

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AI can help select products to advertise or completely take control of an ad campaign, potentially displaying the best products for a given customer. It can also analyze customer data in real time, so you’ll be able to adjust your offerings and marketing communications on the fly./b>

 

Example: If a customer frequently buys organic products, the AI system can automatically recommend new products in that category. You can also use AI to personalize marketing emails, making them more effective..

 

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    Automation

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Automating processes such as customer service through chatbots not only increases efficiency, but improves the quality of service by providing quick and consistent responses.

 

Example: A chatbot can automatically answer frequently asked questions, allowing employees to focus on more complex problems. Some advanced chatbots can even troubleshoot orders or process returns..

 

Application of AI in e-commerce

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Above I have outlined the benefits of using AI in e-commercewith examples. However, this is just the beginning of what artificial intelligence can be useful for when running your own online store..

 

Unfortunately, for the time being, AI will not yet work perfectly in many areas, but who knows, maybe in a few years or perhaps months we may have access to tools that will replace humans in even the most complex processes. .

 

Today, the most popular ways to use AI in online stores are:.

 

Chatbot with AI

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Chatbots using AI are one of the most popular tools in e-commerce. With them, you can automatically answer customers’ questions, guide them through the buying process, and even resolve post-sale issues. .

 

One of the most powerful tools on the subject is Chatfuel. It is a tool that, thanks to its intuitive interface and various features such as product cards and integration with external databases, enables the creation of automated conversations and interactions with userswithout the need for advanced programming skills. .

 

Customer behavior analysis in e-commerce

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AI can analyze data from a variety of sourcessuch as purchase history, on-page behavior, and social media interactions to understand customer needs and preferences..

 

An interesting tool that will allow you to study customer behavior in your online store is HotJar. AI is already able to (admittedly, still quite vaguely) analyze heat maps, so you can easily see how users behave on your site.

 

AI in e-commerce | heat maps | Senuto

 

Estimating sales

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AI can also help forecast sales, which is extremely important for inventory management and marketing campaign planning..

 

Artificial intelligence can, among other things, perform:.

  • analysis of historical data,
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  • analysis and evaluation of leads,
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  • analysis of external factors.

 

AI in online advertising

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Artificial intelligence can automate and optimize advertising campaigns by analyzing which ads bring the best results. .

 

Basically, artificial intelligence is able to easily:.

  • target and segment ad audiences,
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  • analyze user responses to ads,
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  • create advertising content,
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  • analyze the results of advertising campaigns.

 

So who knows if soon advertising specialists will not be replaced by artificial intelligence that will create, optimize and take care of good campaign results. .

 

Generation of content and graphics

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Artificial intelligence is also gaining ground in terms of content and graphics generation,offering new, previously unknown capabilities. .

 

AI in e-commerce | graphics created by AI | Senuto

 

Content and image generating tools can make an extraordinary contribution to increasing sales or improving your store’s conversions. How? It’s very simple..

 

Your previously boring photos or product descriptions can be replaced by AI-generated interesting and colorful images, and the content can spark the customer’s imagination, encouraging them to buy..

 

Useful AI tools

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Octane AI

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Octane AI is a personalized marketing tool aimed primarily at stores on the Shopify platform. Here are some key features of Octane AI:.

 

  • Create quizzes.Allows you to create quizzes that recommend products, increase subscribers and sales.
  • Data analysis.The tool offers data analysis using artificial intelligence.
  • Gather customer information.With engaging quizzes, you can gather customer information and develop marketing lists faster.

 

Octane AI is a platform that specializes in creating chatbots for e-commerce. It enables automation of many aspects of customer service and is easy to use even for people with no programming experience..

 

Example of use: Octane AI can automatically send notifications to customers about the status of their orders, increasing customer satisfaction and loyalty..

 

MidJourney

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Midjourney is an artificial intelligence-based program that creates images based on commands in a language natural, called prompts. It is a service created and run by San Francisco-based independent testing laboratory Midjourney, Inc. .

 

Functions:.

  • Image generation. Allows you to generate images based on natural language descriptions.
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  • Integration with Discord. Currently only available through a bot on the official Discord server.
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  • Additional options after image generation.Users have several options to choose from after generating a set of four images, such as re-generating, scaling one of the images or using one of the images as a template for the next prompt.

 

The first beta version of MidJourney was introduced on July 12, 2022, while the latest version of the model is 5.1, which was introduced on May 3, 2023..

 

ChatGPT

ChatGPT is a powerful AI chatbot based on the language model of choice (GPT 3.5 or GPT 4), which was developed by OpenAI. It allows users to chat in a variety of formats, styles and levels of detail, making it applicable to almost any industry.

 

Applications of GPT Chat:.

  • writing articles and emails,
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  • web design,
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  • writing code,
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  • editing and proofreading text,
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  • text translation,
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  • summarizing articles and speeches,
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  • generating ideas and planning.

 

ChatGPT has become the fastest-growing consumer app in history, gaining more than 100 million usersin a very short period of time.

 

Frase.io

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Frase.io is an artificial intelligence-based toolthat can help bloggers, store owners, or SEO specialists produce high-quality content. The texts created by Frase.io are SEO-compliant, and thanks to intelligent analysis of the competition, they have the right saturation of key phrases, which are essential for gaining high search engine positions..

 

The most important features of Frase.io are:.

  • Optimizing content for SEO. Frase.io analyzes and compares your content with your competitors, offering suggestions on keywords and topics you should include in your article.
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  • Content rewriting. Frase.io can rewrite individual paragraphs or an entire article, in a way that makes it more understandable and readable.
  • Statements. If you need to shorten or summarize a long text, Frase.io, will generate them for you automatically. It only takes a few seconds 🙂
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ViSenze

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ViSenze is a tool that uses AI to analyze and recognize images. It allows retailers and brands to automate processes related to product search and recommendation in online stores and mobile apps. .

 

With its advanced algorithms, ViSenze can also analyze user behavior and preferences to offer personalized product recommendations. It also allows customers to intuitively search for products using images or screenshots..

 

Main features of the tool:

  • Intelligent recommendations.The system analyzes user behavior and preferences to offer products that are most likely to interest them. This allows retailers to increase conversions and customer engagement.
  • Intelligent search.Users can search for products using photos, saved images or screenshots. This innovative approach to search makes it more intuitive for customers to find exactly what they are looking for.
  • Intelligent product tagging. ViSenze automatically tags products in catalogs, making it easier to manage large databases and lowering operating costs.
  • Analytics.The platform offers advanced analytics tools to help retailers understand what products are most in demand and how to better promote them.

 

LiveChat

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LiveChat is a cutting-edge customer service tool that offers AI-related features such as automated responses and customer behavior analysis. LiveChat is currently used by over 37,000 companies and handles 75 million calls per month.

 

Functions of LiveChat:

  • Conversation automation. LiveChat offers various forms of automation, including AI-based chatbots that can engage and qualify potential customers.
  • Omnichannel.The platform supports various communication channels, such as Messenger, email, SMS and WhatsApp, enabling multi-channel customer service from one place.
  • Manage leads. LiveChat enables you to capture leads and facilitate the buying process through elegant product cards and customized forms.
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  • Analytics and monitoring. The LiveChat platform offers tools to track sales and business goals, allowing you to understand exactly how chats are impacting revenue and ROI.
  • Integration with many other tools. LiveChat can be easily integrated with more than 200 tools, including CRMs, order management systems and payment platforms.

 

Copysmith

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Copysmith is a tool similar to Frase.io. It is used to automatically generate marketing content, such as emails, product descriptions or blog posts. The tool can verify content for SEO, check for plagiarism, and tailor the text to a specific audience.

 

The primary function of Copysmith, however, is content generation. For this purpose, Copysmith uses advanced GPT technology from Open AI. In this tool, we can generate various types of content, such as content for Google Ads, Meta Ads, blog posts, ad headlines, product descriptions, SEO metatags and much more..

 

Summary

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As you can see, AI is not a science-fiction invention, but a practical tool that helps thousands, if not millions of people every day. In the e-commerce industry, it has even become crucial, not only optimizing, but revolutionizing the way we do business. Artificial intelligence can take care of personalizing offers for us, automating customer service, or analyzing and creating pricing strategies – the possibilities are almost endless..

 

To take full advantage of AI’s potential, however, it’s worth starting with analyzing your own needs, selecting tools and integrating them,Also don’t forget about continuous monitoring and optimizationbecause although artificial intelligence allows you to automate many activities,human interference in the operation of AI tools is still irreplaceable..

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Paweł Wiszniewski

Senior SEO Specialist w agencji Mayko

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