5 Big Reasons Why Your E-Commerce Brand Needs to Use AI (+Tools to Try!)

E-commerce remains a highly competitive field, but don’t fret, you can make it big amongst the giants thanks to artificial intelligence and machine-learning tools.

Artificial intelligence and machine learning have far surpassed the “eye roll” reaction they once sparked…

They have become essential tools for many large e-commerce brands to operate at such scale — and both, while also becoming more advanced, are increasing in prominence with each year that goes by (in a multitude of sectors).

The marketing revolution is here, and CMOs can’t escape it.

From operational optimization to marketing, personalization and enhanced search…right through to automated inventory planning and dynamic pricing — AI is shaping the future of shopping, at pace.

Is your e-commerce brand ahead of the curve, or rapidly falling behind the times?


(Stat Source: DemandBase)

Ensure you fall within the 10 percent if you want to continue to keep your customers satisfied while driving increased revenue (and even more importantly, higher profit margins).

Of course, there is no better example of e-commerce innovation (and utilization of AI) other than the imposing giant: Amazon.

Prepare to wince…


(Graph Source: Seeking Alpha)

As the trend in the use of AI proliferates, shoppers will soon come to expect this level of ultra-service from all brands, as many already are in their multi-device purchase journeys.

I’m going to uncover some of the core enhancements that AI and machine learning can bring to your e-commerce business — which serve as solid reasons to swiftly implement this technology and beat your competition (or at least, remain somewhat competitive with Amazon)!

Not only that: I have completely jam-packed this piece with many juicy links to multiple, groundbreaking AI tools you simply don’t want to miss.

Reason #1: Predictive Marketing

As the number-one reason, the predictive nature of AI is not only its encompassing benefit, but one that can be finely tailored and applied to all use cases described in this guide (and more):


(Infographic Source: CB Insights)

Before heading into a selection of those subsets and specifics, here are some examples of applications where marketing campaigns are concerned…

Through machine learning, AI can form marketing predictions such as:

  • What customers will buy next
  • What customers don’t want to see
  • How they want your website to be displayed
  • Their preferred device and channel
  • Their typical price threshold
  • When they will be more likely to buy
  • Based on the above conditions and numerous other data points — which of your planned marketing campaigns are set to perform (and those that aren’t)

Of course, the advantages don’t end there.

Using human resource to analyze such data and implement targeted e-comm marketing on an individual basis would take a very long, long time…

Accuracy will also likely become an issue.

When harnessing AI-powered software and predictive analytics, human error is eradicated and the entire process is put on steroids. You are able to scale your marketing to thousands or millions, whilst retaining precision — and that is powerful.

[NOTE: The difference between AI and machine learning? “AI is the science and machine learning is the algorithms that make the machines smarter … So, the enabler for AI is machine learning.” 

Reason #2: Hyper-Personalization

For years, e-commerce brands have been sending email marketing campaigns with the customers’ names inserted at the beginning…

This is personalization in its absolute primal state!

We’re heading into 2018 and if that’s your current method of personalization, it’s definitely time to shift gear. AI is the answer…


(Infographic Source: DealerRefresh)

You can use this tech to personalize (at scale) in many ways:

Manually running this degree of granular optimization? Impossible.

You must meet your customers’ expectations at the right time — with the best content, via their preferred device, channel and/or location on your website and/or app.

As you will be aware after reading the above bullets and following all links; the possibilities really are endless when it comes to intelligent personalization.

Reason #3: Super Searching

Up to 30 percent of e-commerce shoppers make use of on-site search functions.

Approximately 88 percent of consumers research online before purchasing a product.

It’s not surprising that a superbly intelligent search function paves the way to immaculate customer experience and delight.

Shoppers expect accurate search results — and they want them fast.

The above example is a very basic form of a corrected spelling, and Amazon is likely using semantic search driven by artificial intelligence to power the consequent recommendations.

How does this work?

Over time, machine-learning algorithms develop the ability to interpret searches based on intent rather than spellings and/or keywords alone.

This process continually evolves and adapts to the responses of users; including any additional searches, click-throughs, and conversions. Clever, huh?

Alternative products and ads can (and are) also displayed using this concept…

It doesn’t end there. AI is also used to:

  • Provide relevant auto-complete suggestions
  • Rank search results based on user behavior
  • Display add-on items for products searched
  • Understand speech (voice search)
  • Analyze images (visual search)

All this while it progressively learns, without the need for human input…

Reason #4: Dynamic Pricing

When it comes to pricing, the online retail industry of today is consistently presenting fresh challenges to CMOs and COOs alike.

Along with the sheer presence of Amazon, competition is fierce among e-commerce brands of all guises and sizes.

And at very first glance — what matters more than price?

In the eyes of the consumer, not much else…

The problem?

Even for an online merchant with an inventory of 1,000 products, somewhat manual price tweaking (that successfully competes and doesn’t eat into profits) can become a near-impossible task. The environment is constantly changing — delivery rates, currency conversions, logistics, rival prices, and the overall economy are just a small sample of numbers or circumstances prone to flux.

The solution:

You guessed it…

Artificial Intelligence tweaks pricing in real time, based on multiple sets of data including (but not limited to) market conditions, customer behavior and demand, your internal operations, resource capacity, and stock levels.


Reason #5: Superior Assistance

Once upon a time, personal shopping assistants were merely a luxury of the rich or famous…

AI has completely shaken up this scenario and revolutionized e-commerce in the process.

This intelligent, conversational technology cleverly extends to customer service, too.

Personal digital shopping assistants and chatbots can:

  • Suggest the best products to a new visitor in a human-like manner
  • Recommend fresh deals to your returning customers
  • Alert customers when items they may like come into stock or change in price
  • Answer customer queries and provide suggestions
  • Trigger personalization based on the above behavior to increase sales

The advantages this brings to e-commerce retailers are phenomenal…

THINK: Conversion boosts, customer loyalty and retention, enhanced brand image, and amplified revenue — all while massively reducinghuman input and likelihood of error!


(Infographic Source: RedStag Fulfillment)

Perhaps it’s time to create a proprietary digital companion for your website visitors!

Here are a couple of standalone AI-powered assistants to check out, as inspiration:

There’s nothing stopping you producing a similar model, specifically for your own website…

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