Over the past few years, the e-commerce industry has experienced rapid growth and evolved expeditiously. Statistics show that in 2023, more than 20% of retail purchases will occur online, and by 2024, that number will be close to 25%. What’s more, the global e-commerce market is predicted to reach an astonishing $6.3 trillion by the end of 2023.
With this impressive growth has come vast improvements in the e-commerce process, especially in the areas of enhancing the customer experience, streamlining inventory and supply chain management, and meeting SEO and content-creation goals.
AI has played a key role in the improvements in the e-commerce industry, and in this article, we are going to take a closer look at the ways in which AI has changed the industry, as well as how we can help you scale your e-commerce business with EKOM.
Enhancing Personalization and the Customer Experience with AI
There are many ways in which the advancements in AI have led to a more personalized experience for customers. First, personalization systems driven by AI can use customer data and machine learning algorithms to suggest relevant products and offers for that particular customer. This more individualized experience leads to a boosted conversion rate and an increase in overall customer satisfaction.
Another way that AI has enhanced the customer experience is through the emergence of chatbots. By delivering immediate responses to basic inquiries, chatbots can make a customer’s experience more seamless.
Research has shown that an impressive 80% of customer inquiries can be answered by chatbots, and they can reduce response time by an average of 30%. Because chatbots are available 24/7 and are able to provide these quick responses, sales team members have more time to focus on more paramount issues.
Leveraging AI for Supply Chain & Inventory Optimization
In the e-commerce industry, AI plays a big role in supply chain management and inventory. Through the leveraging of machine learning algorithms and data analysis, AI-powered demand forecasting tools offer more accurate predictions of product demand, giving businesses the opportunity to manage their inventory levels more efficiently.
Another result of AI implementation is automation found in warehouses and throughout the order fulfillment process. Among the companies that have successfully introduced an automated warehouse is the LEGO factory in Denmark. There, autonomous robots produce an impressive 36,000 LEGO pieces per minute. Using automation decreases overall labor costs and increases efficiency because the AI-powered robots are performing redundant tasks.
In addition, AI can streamline logistics, shipping, and last-mile delivery, resulting in reduced shipping costs and improved delivery times. According to a report from McKinsey, “AI can optimize routing of delivery traffic, thereby improving fuel efficiency and reducing delivery times.” For example, one European trucking company that has utilized AI has seen a 15% reduction in fuel costs.
In the United States, 65% of consumable goods are delivered by trucks, but as freight rates are increasing and global prices rising, the trucking industry is expected to face a massive shortage. Yet the use of autonomous vehicles could decrease costs by nearly 50% and save the trucking industry more than $100 billion annually. As the e-commerce industry grows, so too does the role that AI plays in optimizing the supply chain.
How AI Takes Legacy SEO Tools to the Next Level
In order for a business to have a successful e-commerce strategy, it needs to create strong content and search engine optimization (SEO). Tools such as Semrush, Optimove, and Seventh Sense can assist with content generation and executing a marketing strategy, but we are taking those capabilities up a notch with EKOM.
Designed especially for the e-commerce industry, EKOM helps businesses like yours grow through creating or refreshing SEO product descriptions, keywords, meta-tags, and more. Utilizing EKOM will give your e-commerce business an advantage over competitors while reducing the workload of your marketing teams. This results in increased traffic, conversions, and sales.
One of EKOM’s strongpoints is its scalability. By using this AI-powered content generation tool, you can efficiently generate or modify a massive quantity of content, which makes maintaining and updating online catalogs so much easier.
When you use EKOM to maintain consistency with your content and keep it relevant, you will find it is easier to sustain your brand’s image and keep improving your customer retention rates.
Advantages of Using AI for Your E-Commerce Business
Since the e-commerce industry is rapidly growing, brands are increasingly turning to AI to help them scale their e-commerce business. By utilizing AI, your brand can offer customers a more personalized experience through software such as chatbots to respond to customers’ inquiries quickly.
AI can also help you optimize your supply chain and inventory. For example, successful companies such as LEGO have created automated warehouses to perform mundane tasks, increasing their efficiency and decreasing labor costs.
Finally, tools like EKOM will help your e-commerce business grow at an increased rate through the creation of strong content such as product descriptions, keywords, and more.
To boost your e-commerce business and make it stand-out amongst competitors, don’t waste time in taking advantage of the many benefits that AI has to offer.