The e-commerce market has grown exponentially over the last decade, and so has the e-commerce landscape, enhancing a customer’s digital experience. Current e-commerce trends, including artificial intelligence (AI), live commerce, augmented reality (AR), social commerce, online-to-offline e-commerce (O2O), and voice assistants, are about to impact the global USD 3.3 trillion market.
Here, entrepreneurs, business heads, and marketers need to understand and utilize these e-commerce trends to beat the competition and raise the bar. Here, we will discuss how AI is bringing immense change in the e-commerce marketing space.
Artificial intelligence
AI can drive personalization and dynamic pricing using AI algorithms. When deployed properly, AI-enabled solutions can help simplify customer engagement and retention. AI algorithms smartly analyze complex customer data, such as browsing history, demography, and purchasing behavior to deliver tailored shopping experiences and personalized product recommendations. AI-based personalization suggests customers unique goods they are most likely to buy. It also reminds them of the right time to refill an order.
Ride-share companies are deploying dynamic pricing models to help retailers conveniently adjust prices in real-time as per changing needs of demand, pricing, and inventory levels. It plays a vital role in maximizing revenue and getting rid of unrealistic pricing structures, remaining competitive in the market.
Gartner predicts that chatbots and virtual assistants will offer personalized customer support by 2027. AI-powered search engines will use ML algorithms to better apprehend user intent, advance search relevance, and improve product discovery. Large retailers are fetching 3rd party AI to simplify product search in natural language.
Recently, e-commerce companies based on serving with a subscription model have grown over 1,000%. D2C subscription brands are relying on AI and advanced analytics to help customers get personalized product selections.
Conclusion
Artificial intelligence in the e-commerce industry is set to change the e-commerce landscape in terms of enhanced product and shopping experiences. From dynamic pricing models to subscription services to personalized product recommendations, AI is making online shopping tailored, customized, and smarter. Retailers can harness the potential of AI to have a competitive edge in the booming e-commerce market.
