AI in E-commerce: Using Business Intelligence to Drive More Sales

Artificial Intelligence in E-commerce

Artificial Intelligence in E-commerce


Amazon is undoubtedly the champion of e-commerce. Whether it’s their recommendations, usability or membership perks, this popular e-commerce platform wins the race because they excel in customer service – at a scale.

But there’s more to Amazon’s strategy than just a good website user experience or top-quality products. The secret to their customer service success is simple: artificial intelligence (AI).

Amazon uses AI for the logistic side of the business. AI changes delivery arrival times, reroutes parcels and makes other adjustments for efficiency and accuracy. Amazon made AI its secret sauce and others are taking a page out of their book, which is why more e-commerce platforms are working with Amazon or Shopify website developer knowledgeable in artificial intelligence.

AI can do many wonders for your business, as it did with Amazon. Here are some ways to incorporate artificial intelligence into your e-commerce strategy.


Many people are familiar with the handy “chat now” box when they shop online. When you talk to “someone” via these chat boxes, you are not talking to a person. Instead, you are talking to a bot programmed to answer frequently asked questions. Thanks to continuous development in AI and chat boxes, the chatting experience is becoming more branded, personalized and intelligent.

Now, e-commerce shops can offer 24/7 customer support, reach seamless brand continuity and collect valuable data – all through AI’s advancement and machine learning. With an automated chatbot, e-commerce retailers can improve conversion rates by customizing online experiences.

Smart Technology

The Internet of Things (IoT) is a common term associated with the Internet and artificial intelligence. Similar to your smartphone, many objects are connected to the Internet. From the best budget laptop for video editing to cars and smart watches to refrigerators, everything can be connected.

For example, Samsung’s Family Hub refrigerator uses AI and interior cameras to convert a simple icebox into a smart appliance. The refrigerator monitors the items in the fridge with cameras and can automatically order more groceries as the food supplies become low. Additionally, AI can recommend recipes for future meals based on the food you have in your fridge.

Customer Relationship Management

One of AI’s most impressive qualities is its predictive nature. Customer Relationship Management (CRM) is a thing of the past. Businesses no longer collect multiple data manually; AI can do the work for them in a streamlined and efficient manner.

If you don’t have an in-house team who are experts in Excel Pivot Tables, AI is at your service. Having AI programmed into your system to consume all data can simplify the data gathering process. With artificial intelligence, you’ll know who’s likely to buy from you, what they’ll purchase and how you can effectively engage with them, as well as determine how to encourage customers to spend more on your products.

AI ushers in a new era of marketing that focuses more on directing relevant advertising to the right visitors at the right place and time.

Image Classification

It’s a customer’s dilemma: they come across something that piques their interest, but they lose the page. They want to buy it, but they don’t know what it’s called or how to find it. Fortunately, AI can solve this problem. With its ability to interpret, classify and understand images, artificial intelligence makes it easier to find what you need even if you don’t know the name or where to look for it.

Consider Pinterest. For instance, if you find a pinned room that you love, you’ll be directed to the Visually Similar results on the side. This feature makes it easier to find the rug, chair or artwork you say in the photo of the room. Also, thanks to AI, you can just take a photo of the shoes you saw someone else wore the other day and run the photo online to find the exact shoes.

How can image classification work for a business? Try the Amazon mobile app and point your camera at an object. The website will identify it and add it to your cart.

Inventory Management

AI’s predictive analytics are also improving inventory management. Business owners are no strangers to the constant struggle of keeping inventories up to date and shelves stocked. Artificial intelligence enables retailers to gather important data about factors driving predictive analysis for what future demands are most likely to come your way.

For larger businesses like Amazon, artificial intelligence is a differentiating force. For small businesses and newer brands, AI could be the change needed in their management. Refuse to be a victim of change or analysis paralysis. Instead, become a champion of e-commerce – like Amazon – by embracing the reality of AI.

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