Why you need AI for Ecommerce


Your customers are faced with loads of choices while shopping online. The chances of a customer coming to your website and buying something is less than 4%, simply because of the abundant choices they have today. Here’s where ai for ecommerce comes into play. By studying the data on consumer behavior, etc artificial intelligence has delivered an optimized customer experience, correctly predicted future trends, and helped made better business decisions. Let us see how artificial intelligence has become a great tool for today’s highly competitive e-commerce industry. 

Customer Retention

Amazon uses artificial intelligence for almost all its e-commerce. This has helped Amazon to stay ahead of the game. These personalized experiences help increase conversion rates Research shows that there is a 10-15% uplift in potential revenue via omnichannel personalization strategies

A great example of this is Nike

Nike strives to build an online presence independent of the e-commerce giants like Amazon. It does this by providing valuable content like fitness programs on the mobile application. If you have ever used the Nike Training app, you know the app asks for a lot of consumer data. It tracks your workout patterns and pushes you to purchase a new product at the sweet spot. 

This is called putting big data into use with the help of artificial intelligence.

AI Chatbots for e-commerce

Virtual assistance even in its infant stage is a fairly well-known concept thanks to Siri, Alexa, and now Google Duplex! Today many e-commerce companies have incorporated artificial intelligence-powered chatbots that provide 24×7 support. This has increased the overall customer experience by fostering more and more interactions, streamlining customer journeys, and adding real-time customer service. Thus you retain the customer and increase the chances of conversions. 

Product Recommendations

97% of the time a customer will leave your website without buying anything. Consumers have limited resources and time. They are constantly exposed to tons of result pages. Personalization of product recommendations with the help of artificial intelligence tools has come to play. They have excelled in helping your user navigate and land on relevant pages. Based on the user’s data, behaviors, and previous purchasing patterns the algorithm with retrieve actionable insights. Then it recommends products that align with your users’ existing purchases.

Personalization is the key to a pleasant customer journey, and with the help of artificial intelligence, you can create an enjoyable experience for your users. 

Inventory Management

It’s important to prioritize the products you need when you need them because storage facilities don’t have the resources to keep everything in stock. Inventory must be kept up to date, stored properly, and ordered ahead of time — based on predictions of customer demand. Artificial intelligence technology uses deep learning algorithms to predict what the future demands of the market would look like. This enables us to accurately predict what inventory you need and what needs to be ordered. AI systems can anticipate demand changes quickly, perform preventive maintenance on your technology, and automate certain packing procedures to increase efficiency.

Apart from inventory management, artificial intelligence-powered robots can retrieve goods 24×7, unlike human employees. This does not mean fewer jobs for humans but more varied jobs for them.


The fashion industry is very polluting. AI-powered fashion e-commerce sites are helping make this market more sustainable.

There is no doubt that artificial intelligence has played a huge role in making e-commerce sustainable. Shopclues uses artificial intelligence to get information on which products have worked and which haven’t. Thus, making the products that their customers don’t like so they don’t end up in landfills. 

Artificial intelligence is helping companies reduce the number of goods returned via online sales. Zara is incorporating AI bases size recommendations to reduce return rates. 


Shopping is undergoing a radical shift right now and the pandemic has only sped it up. Using ai for ecommerce can is helping the e-commerce industry move forward and streamline business processes. It has also contributed greatly to reducing the impact of fast fashion on the environment by making it more sustainable. Yet AI is still in its infant stage and there is more to come. 

Looking to build your eCommerce platform with AI we can help you out. Just ping us at [email protected] or check out our website www.luxeveda.com


June 16 2022


Artificial Intelligence
Virtual Shopping
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