Consider two ecommerce websites.
The first one has a complicated interface with no search option. You see random products irrelevant to your interest and buying preferences. Your experience as a site visitor was terrible.
The second website, however, is very interactive and easy to use. It understands your likings and preferences. Your favorite products are listed on the top. You can also ask questions from the chatbot and get immediate answers. Without navigating through different pages, you have got everything you were looking for in minutes.
So, which ecommerce website would you revisit in the future? Definitely the second one. It uses generative AI technology that streamlines customer service and offers delightful experiences to buyers. The integration of generative AI in ecommerce is currently trending.
This article discusses five major applications of generative AI in ecommerce. Let’s explore these uses to see how this amazing technology is driving growth and innovation in the ecommerce industry.
What is Generative AI?
Two years ago, very few people knew what generative AI is. Today, the term has become very popular, at least among regular internet users. Thanks to ChatGPT for this sudden change.
Generative AI is a technology that can produce high-quality human-like content in minutes. Users tell their content requirements in prompts and get immediate responses in seconds. This technology has changed the way students learn, businesses operate, and people communicate.
For instance, you can use a generative AI tool like ChatGPT or Gemini to write an email or long-form essay. Similarly, text-to-image tools Firefly and DALL-E can produce stunning graphics and images from textual prompts.
In the coming years, we will see more developments in generative AI and get access to more advanced tools with improved responses to users’ prompts.
The Need for Generative AI in Ecommerce
The use of AI in the e-commerce sector is not new. Leading online shopping sites like Amazon and eBay have been using predictive AI technology to send personalized recommendations and improve search results.
However, generative AI has further transformed shopping experiences for buyers. From driving more conversions, increasing the retention rate, and strengthening customer relationships, generative AI has offered endless benefits to e-commerce businesses.
Therefore, e-commerce sites are actively working on AI chatbots for better customer service, increased sales, and more profitability.
5 Use cases of Generative AI in Ecommerce
Here’s how ecommerce companies can use generative AI to achieve their desired business objectives:
1. Produce Engaging Content
Customers interested in online shopping usually have a very low retention time. They seldom stay on a website and explore different products unless it has engaging content. Catchy product descriptions, high-quality images, and CTAs create a huge impact.
This is an area where ecommerce businesses can benefit from generative AI. They can use this technology to produce engaging content aligned to visitors’ needs and interests.
Starting from social media, marketers can use generative AI tools to write interesting captions. Prospects would get inspired by these captions and visit the website. Next, SEO-optimized content can be posted on the website to influence visitors’ buying decisions.
Eventually, content creation through generative AI in the ecommerce sector can play a huge role in building brand image, driving more website traffic, and converting leads into customers.
2. Transform Customer Support
The second common trait of online shoppers is that they want their queries to be resolved as soon as possible.
Suppose you visit an e-commerce website to buy something. However, you are unable to find your desired product. Luckily, the website has integrated an AI chatbot that can address your concerns. You ask your question and get a satisfactory answer in a few seconds.
Hence, instead of waiting for hours, you can get a response quickly and proceed with the checkout. The website can generate more revenues by satisfying visitors, while prospects can convert into loyal clients.
This is a win-win situation for both the e-commerce brand and its customers. Generative AI made it possible.
3. Product Information Management
The third area where generative AI can be effective in ecommerce is managing information on different products and services. Ecommerce brands can use ChatGPT, Gemini, or CoPilot to write or improve product descriptions and vary details for each product separately.
Similarly, advanced LLMs like GPT-4 can understand complex technical information. They can help you write product descriptions meeting SEO requirements and users’ needs. Some tools, like Gemini, can even product descriptions from images and videos.
So, you don’t need to spend hours managing product data. Generative AI tools can do all these tasks in less time. They can boost your team’s productivity without decreasing the content quality.
4. Personalized Recommendations
Predictive AI has been helpful in sending recommended products to buyers based on their search or purchase history. Generative AI is expected to take this process to the next level.
Today, customers not only get personalized product recommendations, but they can also ask the website which product suits them the best. For example, if you are looking for a party dress for an upcoming wedding, tell the AI chatbot what you should wear. The chatbot would give you a list of recommended products meeting your interest.
Similarly, if the product you are looking for is currently unavailable, you can ask for the expected date of arrival. Ecommerce brands can also take orders directly through generative AI chatbots and deliver them on due dates.
Generative AI makes product search, purchase, and delivery more seamless.
5. Enhanced Post-buying Experiences
The cost of acquiring a new customer is almost five times higher than retaining an existing one. In the ecommerce sector, this cost may rise even more. It is, therefore, crucial for ecommerce websites to focus more on customer retention.
With generative AI, ecommerce companies can optimize inventory, order placement, and order management. AI technology can analyze negative reviews from customers and recommend feasible solutions. Similarly, the tools can be used to identify common reasons for product returns and make informed decisions to reduce the return rates.
Likewise, generative AI can also map out more sustainable delivery routes and find more effective ways to ship items. Consequently, companies can reduce shipping costs and product delivery time while improving post-buying experiences.
Final Thoughts
Adopting modern technologies is the only way forward in today’s competitive business landscape. Particularly, ecommerce companies must leverage cutting-edge solutions to stay ahead of the curve and generate high revenues.
While several new technologies are available, generative AI is making more headlines nowadays. This technology is gradually replacing traditional practices in every sector. Generative AI tools like ChatGPT have already become the fastest-adopted apps gaining millions of users in a few months.
As far as generative AI in ecommerce industry is concerned, plenty of options are available for online shopping websites. They can use this technology to produce engaging content, transform customer support, and effectively manage product information. Besides, these platforms are also useful in making personalized recommendations and enhancing post-buying experiences.