August 15 0 51

How AI is Changing the eCommerce Space: From Personalized Searches to $12.7 Billion in Sales

Let's talk about something big happening in online shopping. A new kind of computer program called Generative AI (GenAI for short) is making waves in the e-commerce world. It's not just a fancy new tool or passing trend - it's changing how we buy stuff on the internet in some pretty cool ways.

GenAI is different from older computer programs. It can think up new ideas, understand tricky questions, and come up with smart answers. This means online stores can do things they couldn't do before. They can help you find exactly what you want, even if you're not sure how to describe it. They can show you things you might like, based on what you've bought before. And they can make shopping easier in ways we're just starting to figure out.

If you run an online store, or if you just like shopping online, it's good to know about these changes. GenAI isn't just making online shopping a bit better - it's totally changing what we expect when we shop on the internet.

In this article, we'll look at how GenAI is being used right now, what might happen in the future, and why it matters to both shoppers and store owners. Let's dive in and see what's new in the world of online shopping!

Smarter searching: Finding what you really want

Remember when shopping online meant typing a few words and hoping for the best? Those days are going away. GenAI is making searching for products much smarter:

  1. Understanding tricky questions: GenAI can handle questions like, "I need clothes for a beach party that won't get too hot." It gets what you mean, not just the words you use. This is a big step up from old search systems that only looked for exact words.
  2. Helping behind the scenes: GenAI does more than just help you search. It's working hard in ways you can't see:
  • Filling in missing information: If a product page is missing some details, GenAI can add them. This means you always have the info you need to decide what to buy. No more guessing about important product features!
  • Making personal collections: GenAI can make groups of products just for you, based on what you like. It's like having a friend who always knows what you'd want to buy. This makes it easier to find new things you'll love.
  • Talking your language: GenAI is getting really good at changing product descriptions to sound right in different languages. This helps people shop in online stores from all over the world. It's not just translating words - it's making sure the meaning comes across clearly.

These new features make online shopping easier for everyone. Store owners don't have to do as much boring work, and shoppers have a better time finding what they want. It's a win-win situation for both sides of the online shopping world.

AI: Your new shopping assistant

Online shopping has changed a lot over the years. First, we had simple searches that only worked if you typed exactly the right words. Then we got systems that could understand related ideas. But even those had problems.

Now we have GenAI. This new tech can handle questions like, "What should I wear to an outdoor wedding in the fall?" It understands not just the words but what you're really asking. It might suggest things like lightweight jackets, comfortable shoes for grass, and colors that look good in autumn light.

As this gets better, people might start looking for products directly on store websites instead of using Google. This is a big deal for online stores - the more time people spend on their site, the more likely they are to buy something. It also means stores can learn more about what their customers want, which helps them stock the right products.

Smarter ads that you might actually like

You've probably seen ads while shopping online. This is called Retail Media, and it's becoming more common. Stores like it because it helps them make extra money, especially when times are tough economically.

GenAI is making these ads better. Instead of showing you random stuff, it tries to show you things you might actually want. If you've been looking at camping gear, you might see an ad for a new kind of tent or a cool camping stove. It's like the store is guessing what you might need next.

This helps stores make more money from ads, and it means you're more likely to see ads for stuff you're interested in. It's good for everyone. You don't waste time looking at ads for things you don't care about, and stores don't waste money showing ads to the wrong people.

How to use AI in your online store: A simple guide

If you run an online store, you might be wondering how to use AI. Here's a simple plan:

  1. Think about what makes your store special: How can AI help make that even better? Maybe you're known for great customer service - AI could help answer customer questions faster.
  2. Decide what you want AI to do: Do you want it to help customers find products? Answer questions? Make product recommendations? Be clear about your goals.
  3. Start small: Try using AI for one thing first, like helping people search your site. See how it goes. You can always add more AI features later.
  4. Get a team together: Find people who know about tech and people who understand your customers. Both are important. They can work together to make sure the AI helps your customers in the right way.
  5. Think about big changes: Don't just use AI for small things. How could it change your whole business? Could it help you sell in new ways or reach new customers?
  6. Decide how fast to move: Do you need to start using AI right away, or can you take your time? This might depend on what other stores in your field are doing.
  7. Look at what other stores are doing: See how big companies in your field are using AI. You might get some good ideas. But remember, what works for them might not be right for your store.

One easy way to start is to look at SaaS (Software as a Service) tools. These are programs that use AI to help build and run online stores. They can be a good way to try out AI without having to know a lot about how it works. Many of these tools are easy to set up and can be customized to fit your store's needs.

Learning from the past, getting ready for what's next

GenAI is already helping online stores do cool things. But this is just the start. More new tech is coming that will change online shopping even more.

When new tech shows up, there's always a lot of excitement. Everyone says their new thing will change everything. To figure out what's really worth trying, it helps to look at how other new tech changed online shopping in the past.

Take smartphones, for example. When they first got big, every store rushed to make an app. Some of those apps are still around and really useful. Others disappeared pretty quickly. The lesson? New tech is only great if it actually makes shopping better for customers.

So, what might we see in the future? Here are some ideas:

  • Virtual Fitting Rooms: Try on clothes without actually putting them on. This could make it easier to shop for clothes online and might mean fewer returns.
  • Smart Shopping Lists: Your fridge might tell you when you're running low on milk or eggs. Your AI shopping assistant could then add these items to your next online grocery order automatically.
  • Super-Fast Delivery: Stores might send stuff to your area before you even order it, so you get it really fast. This could mean getting your orders in hours instead of days.
  • AI Fashion Designers: AI might help create new clothing designs based on current trends and your personal style. You could get unique clothes that are made just for you.
  • Voice Shopping: As smart speakers get better, you might be able to shop just by talking. "Hey AI, order me some new socks" could be all you need to say.

Conclusion

GenAI is changing online shopping in big ways. It's making it easier to find what you want, helping stores show you stuff you'll actually like, and making all the behind-the-scenes stuff work better.

If you run an online store, now's a good time to start thinking about how to use GenAI. It's not just about keeping up with other stores. It's about making shopping better for your customers. The stores that use AI well will probably do better in the long run.

As we look ahead, it's clear that AI is going to be a big part of online shopping. Stores that figure out how to use it well are going to do better. They'll understand what their customers want, show them cool stuff they might like, and give better service. This could mean happier customers who come back to shop more often.

Remember those SaaS tools we talked about? They can be a great way to start using AI in your store without needing to be a computer genius. Many of these tools are designed to be user-friendly, so you can start seeing the benefits of AI without a huge learning curve.

Online shopping is changing fast, and AI is a big reason why. It's an exciting time for people who like to shop online and for people who run online stores. New things are possible now that weren't before. We might see online stores that feel more like real stores, with AI helpers that know exactly what you like and what you need.

The future of online shopping is here, and it's full of possibilities. If you enjoy shopping online or if you run an online store, keep an eye on AI developments. It could be the key to making online shopping much better than it is now. Who knows? The next time you're browsing an online store, you might find yourself interacting with an AI that understands exactly what you're looking for, even if you're not quite sure yourself. Welcome to the new world of AI-powered shopping!

How do you like the article?
#ecommerce #online shopping trends

Igaming offers from Liberty