E-commerce has witnessed a tremendous increase in sales volume, reaching $5.7 trillion US dollars in 2022, equivalent to 20% of total global retail sales.
A recent study conducted by “Like Digital” in collaboration with its digital transformation services partners confirmed that Artificial Intelligence has become an integral part of our daily lives, seamlessly integrating without us noticing, from music apps like “Siri” to navigation apps like “Waze” during your commute to work.
Artificial Intelligence has empowered merchants to achieve better sales forecasts, provide improved support for their customers, re-engage with lost customers, and enhance overall communication, work, and entertainment experiences.
Carl Eskrit, CEO of “Like Digital” and its partners, stated: “Online AI companies such as Amazon and Alibaba lead the major markets, leveraging AI strategies to gain significant market shares.”
He mentioned: “For example, Amazon alone recorded 5.9 billion direct visits in April 2023, where retail traders benefit from leveraging AI in analyzing predictions, customizing customer experiences, analyzing past purchases, popular products, and search patterns to examine millions of products available in their markets.”
Regarding usage pattern analysis, he noted that in Amazon’s case, they rely on analyzing usage patterns to accurately predict when an average shopper needs to restock home essentials. This provides timely notifications about the need for laundry detergents, coffee, or personal hygiene products. Additionally, on the other hand, Sephora’s app customizes user experience by offering personalized product suggestions based on the shopper’s expected budget. This contributes to enhancing the overall user experience and increasing conversion rates, as cited in the quotation.
Eskrit suggested that if you see something you like but are unsure about the brand, you can utilize visual search technology, such as the “Pattern Match” feature in the ASOS app, to upload an image of the desired pattern, then receive personalized recommendations for similar purchasable items. This feature leverages machine learning and AI-backed computer vision technology to analyze the image and provide suggestions based on colors, shapes, and patterns.
He also pointed out that Artificial Intelligence plays a subtle but crucial role in the retail sector. Its impact begins with automated chatbots that help locate missing orders and extends to alerts that notify you when a specific pair of sneakers on your wishlist is running out of stock. AI also streamlines the online shopping process, from browsing to receiving the final order at your doorstep.
Furthermore, he mentioned that Artificial Intelligence has the potential to enhance the sustainability of the retail sales experience. Research indicates that customization and virtual experiences can reduce return rates, thereby reducing shipping and packaging costs, benefiting buyers, retailers, and the environment alike.
