Generative AI in E-commerce: Use Cases and Success Stories

Generative AI has overcome almost every industry as the catalyst happening here around us. No matter from which industry you are sneaking in to get rhyme – this technology has a lot of potential to provide you with all the supremacy you wish for.

Undoubtedly, there are hundreds of industries are being transformed by Generative AI By 2030, the value of the generative AI sector is expected to grow to USD 110.8 billion. However, in this blog post, we will talk about How the e-commerce industry is leveraging generative AI e-commerce.

Not only this, but also how e-retailers can utilize this technology to augment their sales. As a top-notch pioneer of Generative AI e-commerce technology, we have enlightened all the aspects you can consider to live your success story.

So, whether you are looking for Artificial Intelligence Development (AI), powered eCommerce development, or AI-powered Chatbots – don’t opt for them without us.

Generative AI eCommerce Statistics – You Must Need to Know

➔ Generative AI in eCommerce is Predicted to grasp on $2.1 billion by 2032, with a projected annual growth rate of 14.90%.
➔ 80% of retail and e-commerce businesses are currently using or planning to use AI bots soon.
➔ eCommerce businesses that utilize AI-powered chatbots for business communication have an average open rate of 85% and a click-through rate (CTR) of 40%.
➔ According to McKinsey’s research, AI in eCommerce can increase customer retention by 10-15% with personalized marketing.
➔ The top AI personalization feature for purchase decisions is ‘live search,’ chosen by 42% of respondents. Automated product recommendations based on previous behavior are favored by 35.7%.
➔ Over 50% of online shoppers now reflect a personalized shopping experience important due to post-COVID e-commerce trends.

Use Cases and Applications of Generative AI In E-Commerce

More people are shopping online these days, not just because it’s easy and convenient but also because they get amazing experiences that match their likes and needs. Businesses look closely at what features and traits connect with customers to improve their shopping experiences – Generative AI for e-commerce is one of them. Let’s explore how you can incorporate AI into your e-commerce business website.

1- AI-Powered Conversational Commerce

Generative AI is immersive, transforming conversational commerce and how we shop online. As generative AI, e-commerce uses chat and messaging to help customers and make shopping easier through fun interactions. Generative AI improves conversational commerce by being available on digital platforms. It learns what shoppers like and provides personalized help.

This includes custom product details, virtual shopping assistants, and tailored recommendations. Because of this, businesses can build better relationships with their customers, which increases satisfaction and loyalty.

2- AI Personal Shoppers

AI personal shoppers help people to go through the many choices in online shopping and make it easier for users to find what they need and uncover great deals. While shopping Nowadays, people often look for different items like clothes in a mixed-up way. Regular shopping websites treat these searches as separate, which can be confusing. Generative AI in e-commerce can change this by remembering what users like as they shop.

With this information, it makes looking at different products easier and more enjoyable. This seamless experience helps customers have a more personal and efficient shopping experience.

3- Personalized Product Recommendations

According to Business Wire, research shows that 72% of customers respond better to personalized messages. Generative AI can look at customer data to create personalized product suggestions. These suggestions can be sent as product cards through an eCommerce AI chatbot.

This helps increase sales by offering customers product ideas that suit their likes and needs.

For example, if someone needs help finding activities, recipes, or clothes, this personalized approach can be very helpful.
Upselling/Cross-selling

Generative AI is a technology that helps improve shopping in retail and e-commerce. It improves customers’ shopping experiences by analyzing what they are buying and suggesting other items that complement their choices.

For example, an AI chatbot can talk to customers in a friendly way. If a customer adds items to their shopping cart, the chatbot might say something like, “I see you’ve added product ACD to your cart. Many people also buy product XYZ with it. Would you like to add it too?”

This helps customers discover new products they might like and can encourage them to buy more things.

According to Forbes, businesses say that using chatbots has helped them increase sales by 67%. Many examples of great generative AI eCommerce chatbots are changing how businesses talk to their customers.

4- Customer Reviews

Online reviews are becoming really important when people decide to buy something. Generative AI can gather reviews from many different websites, like Amazon or Wayfair. This means customers don’t have to look at many websites to find out how good a product is.

Instead, they can just ask an AI chatbot on an online store for information. The chatbot will give them all the reviews and the average rating for the product. This helps customers make smart buying choices easily and quickly.

5- Price Matching

Many sellers offer similar products on the same selling website. With the help of Generative AI, an eCommerce bot can help users find all the different prices for a product and show them a comparison.

This allows users to see the price differences from different sellers, making it easier for them to decide what to buy. By providing this clear information and ease of use, businesses can make shopping better for everyone and increase their sales.

6- Product Search

Generative AI can help customers find the right product even if they don’t know the exact name. For example, a customer might ask an online store chatbot, “Can you find me a product that does this, looks like that, and costs around this much?” With generative AI, chatbots can understand what the customer is looking for, like a specific style, such as “bohemian, Western or Eastern.”

The chatbot uses natural language processing to figure out the request and provides a list of products that match what the customer wants. This makes it easier and faster for people to find what they are looking for.

7- Product Stock or Type Notifications

An AI assistant can tell you when items are running low and keep you updated on popular products. This notification system sends you personalized messages using smart technology, making your experience better. If you have chatted with a bot and agreed to get updates, you will receive important information about products that might interest you.

8- Price History

Generative AI improves eCommerce chatbots by using data about past prices. For example, the chatbot can display messages like “lowest price in number of days.” This encourages customers to buy by showing them current price benefits. By using pricing history, these chatbots also provide real-time updates and personalized suggestions. As a result, Generative AI chatbots help engage customers, increase sales, and lower return rates.

If you’re thinking about adding Generative AI to your existing chatbot, testing it with a Proof of Concept before you launch is a good idea. At Digital Gravity, we can help you easily add Generative AI to your current chatbot, train it, and have it ready for you in just two weeks.

How does Amazon use generative AI to help sellers and shoppers?

➔ Project Amelia adds a personalized

Project Amelia helps Amazon sellers by providing a personal expert who understands each seller’s business. This expert offers advice, helpful information, and insights to help sellers succeed.

As Project Amelia improves, it will be able to find new business opportunities, identify problems, and suggest ways to increase sales, manage inventory, and fix issues. Sellers can ask questions like, “How is my business doing?” and Project Amelia will quickly show them important sales information and trends. It is always available on Seller Central, ready to answer questions and give tailored advice to meet each seller’s needs.

➔ Expanding generative AI product listings

In 2023, Amazon introduced new AI technology to simplify the creation and management of product listings for sellers. With this, sellers can input a short description, provide a link, or upload an image, and the AI generates detailed listings.

You know what’s the good part? Over 400,000 sellers have utilized these tools. Later this year, Amazon will enhance the features, allowing sellers to upload a spreadsheet with basic product information for bulk listing creation. This improvement aims to help sellers create better product pages more efficiently.

➔ A+ Content automatically creates brand storylines

On Amazon, brands can make special content for their product pages, such as rich image carousels and comparison charts. This special content is called A+ Content, and it helps brands share their unique story and values with customers. Using A+ Content can increase sales by up to 20% for sellers.

In the past, creating this high-quality content took a lot of time and effort, like doing photo shoots, writing, designing, testing, and making changes. Now, brands can make the process easier by using new AI tools. These tools help them improve their product pages, create more interesting and informative listings, and generate engaging lifestyle images that showcase their products.

➔ Personalizing Product Recommendations

Amazon is utilizing generative AI in e-commerce to enhance personalized product recommendations and descriptions on its website and shopping app. This technology analyzes customer shopping activity to tailor recommendations and improve product relevance.

For example, instead of general suggestions, specific recommendations like “Gift boxes in time for Mother’s Day” are provided based on user behavior. Additionally, terms like “gluten-free” can be included in product descriptions for targeted searches. This approach is especially beneficial for mobile shoppers, helping sellers reach the right audience more effectively.

➔ Sellers can leverage generative AI

Amazon has launched Video Generator, a new generative AI tool that allows sellers to create video advertisements quickly and at no extra cost. Using a single product image, this tool generates custom videos that highlight product features, utilizing Amazon’s retail insights to create engaging and relevant content for customers. This innovation aims to enhance creativity for sellers and improve the advertising experience for shoppers.

How does Digital Gravity’s generative AI platform transform e-commerce operations?

Digital Gravity offers integration of Top-notch AI platforms like; ChatGPT, Mistral and Deepseek into your e-commerce helping online stores work better. It makes creating content easier by automatically writing product descriptions, blog articles, and marketing messages. This means less manual work for businesses and saves time.

These AI chatbots can talk to customers right away, helping them with questions and making them happier. It also uses smart data to help businesses set prices and predict how much of a product they will sell, so they can stay ahead of their competitors.

Moreover, Generative AI in e-commerce can create attractive pictures and ads for products. By making these tasks simpler and improving sales, Digital Gravity’s AI helps online brands grow and earn more money.

– How is AI used in e-commerce?

Artificial intelligence (AI) has made it quicker to make decisions in online shopping. AI can find patterns in data and predict how users behave and what they are likely to buy.

– Can AI build an e-commerce website?

With AI website builders, such as Bluehost’s AI WordPress Website Builder, you can create your online store quickly in just a few minutes, and you don’t need to know how to code.

– What is the best AI for e-commerce?

Here are the top 4 AI e-commerce technologies worth a try.

• Lyro AI Chatbot.
• Nosto.
• Adobe Sensei.
• Plerdy.

– How big is the e-commerce market in AI?

The global market for online shopping using AI (artificial intelligence) is expected to be worth $8.65 billion by 2025. By 2032, this market is predicted to grow even more, reaching $22.60 billion. This growth is driven by an annual increase of 14.60% from 2024 to 2032.

– How is generative AI used in eCommerce?

Generative AI can suggest promotions, price points, and marketing messages to help you achieve your goal.

– How is artificial intelligence used in e-commerce?

AI can help online stores sell more and make customers happier by looking at data and giving smart suggestions.

– How does Amazon use generative AI?

AI can help online stores sell more and make customers happier by looking at data and giving smart suggestions.

Just Wrapping Up

Now, do you have a clear idea about how to use AI in e-commerce? You need to be concerned about artificial intelligence development companies to get your business to new heights. So, transform your e-commerce business with AI-powered automation. Boost efficiency, enhance customer engagement, and drive more sales.