Artificial Intelligence has come a long way since its inception, it has revolutionized several Industries including E-Commerce. Artificial intelligence means the ability of machines to perform certain tasks that require learning data, making decisions, understanding languages, and much more just as we humans do. In the eCommerce Industry AI is being utilized a lot to improvise the customer experience, enhance the market, improvise the supply chain, enhance pricing, and much more. In this article, we will discuss how eCommerce businesses are leveraging AI to thrive in the global market.

According to statistics done by Mordor Intelligence, the global AI market is nearly 35 Billion, and it is expected to reach USD 190 Billion by 2025.

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Top 6 areas where eCommerce businesses can implement AI.

Personalization of Shopping Experience

This is the way through which businesses and customers can gain benefits from AI. Personalizing the shopping experience for the users would make it quite easy for customers to make decisions quickly. Most of the AI models are trained in such a way that they analyze every activity of the users like what products they are exploring, categories or products, what they like, and dislike, and much more.

An Ecommerce business can use AI to recommend products based on customers’ activity and browning history. This can be easily implemented either through a chatbot, which can respond to user queries, or by designing the product pages in a way that gives suggestions like “products like this”, comparison, and much more.

As per the statistics, personalization has helped to engage with customers in a better way. A recent study done by epsilon shows that personalized emails are more likely to be opened by 29% than non-personalized emails.

Optimizing Price Models with AI

AI can help eCommerce businesses to analyze the price model based on customer behavior and data collected regularly. This can help them to put an optimal price for their different products. For example, by implementing different machine learning and AI algorithms, businesses can easily monitor the competitor’s prices and set them based on that.

In the e-commerce industry, pricing is quite an important factor that can affect demand As per the recent study done by McKinsey, nearly 1 percent of price increase has decreased demand by 8.7 percent.

Improvisation in Supply Chain Management and AI

E-commerce businesses can moreover use AI technology to enhance their Supply chain Management and operations. AI can be utilized to optimize inventory levels, forecast demand, automate fulfillment, and much more. Based on different predictive models, eCommerce businesses can adjust their inventory levels or use robotics for managing the packaging and shipping of their orders.

For any eCommerce business to succeed, it is quite important to have an efficient Supply chain since it can heavily impact delivery time, cost, and customer satisfaction. Nearly 75 percent of consumers are willing to pay an extra cost if the supply chain management is quite optimized and seamlessly designed.

Advertising and Marketing with AI

With the help of Artificial Intelligence, one can use collected customer data and perform activities like analyzing them to implement marketing and advertising strategies. AI can be used to effectively target and engage with existing and new customers to increase sales and establish customer loyalty. Based on a recent study by SalesForce, AI-based personalized recommendations helped businesses to increase their sales by 25 percent. A lot of eCommerce companies can use AI to optimize various things like product descriptions, personalized email campaigns, and much more.

Enhancement of Customer Service

One can use AI-based solutions to improve and enhance the customer experience by providing them assistance through chatbots and other AI-based tools. For example, a chatbot that helps customers to compare products and resolve queries around it can be useful. Such chatbots can be easily integrated with your eCommerce website or social media platform.

Moreover, with the help of NLP or Natural Language processing, you can build solutions that can understand human language and interpret it. This can be used by customers to make complaints, and requests and provide immediate resolution or assistance to them.

If you want to implement such use cases or want to know more. You can try consulting with a Mobile Application Development Services Company offering AI-based solutions. Such companies have diversified experience to deal with such products and hold expertise in it.

Important aspects one should consider while implementing AI technology in their applications.

Although there are a lot of benefits of artificial intelligence, there are significant important points that e-commerce businesses should consider while implementing AI-based solutions.

  • Always ensure that AI is used in a data-driven and strategic way rather than just implementing it for the sake of it. Also, there are certain risks and limitations of AI, in many cases, there is the possibility of biased algorithms and the periodic need to make certain updates and maintenance activity.
  • Ecommerce Companies looking to make AI-based solutions, should begin with small and basic implementation and then move on to complex use cases. This would help eCommerce businesses to ensure that the process of implementation is quite smooth and seamless. This would also help them to update data on innovations happening in AI.
  • There should be a proper plan being made by companies to ensure that the customer’s data is stored securely and privacy is maintained. To be compliant with different rules and regulations, it is quite important to handle consumer data securely and ethically.
  • While Implementing AI-based solutions, scalability is an important factor that affects the growth of business in the future. One should ensure that there is a certain level of optimization in AI models, implement load balancing to distribute traffic across different services, and utilize MLOps or cloud platforms to adjust scalability on demand.
  • One should do a complete analysis of the cost and resources needed to implement AI. The cost can involve several upfront costs to set up the AI-based solutions, maintenance of it, and human resources needed to operate and manage AI-based systems.
  • E-commerce businesses should take legal approval from the authorities to be compliant with different regulations and laws. This can be done by hiring compliance experts and legal counsel to assess the requirements and risks of implementing AI-based solutions.
  • Survey to know if the customers are ready to accept and adopt AI-based solutions. You can include certain questions in Survey that can help you to do more research about your customers, concerns, and requirements. Also if they are ready, you can help them with tutorials and materials so they can learn about new AI-based features implemented in your eCommerce platform.


In conclusion, e-commerce can thrive from Artificial Intelligence by busting for different use cases like marketing and advertising, optimizing pricing, improvising the user experience through personalization, and much more. Businesses need to build clear strategies and goals around utilizing AI and consider partnering with different Flutter App Development companies in the US experienced in AI to implement mobile based ecommerce solutions. Moreover, Ecommerce businesses should continuously revise and evaluate the effectiveness of AI technology and make certain improvements based on that. With the help of Artificial Intelligence, eCommerce businesses can gain a competitive edge over their competitors in several aspects.

Author Bio:

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Prashant Pujara is the CEO of MultiQoS Technologies, top Flutter App Development Company in USA with experience in on demand Marketplace App Development Solutions where you can hire app developer for your business. He oversees the company’s commercial and delivery operations, as well as strategic planning and strategy.