AI is becoming a part of almost everything we do, thankfully not horse riding or skydiving just yet! In business, however, Generative AI in eCommerce platforms is revolutionizing how we shop online.
From personalized shopping experiences to predictive analytics, AI is reshaping the B2B eCommerce landscape, simplifying processes and making operations more efficient for store owners. In this blog, we cover all the use cases for generative AI in eCommerce platforms so you don’t have to look elsewhere. Let’s dive in.
We've all heard of AI, but what's Generative AI? Is it the same as AI or is it an upgrade to AI with added benefits? Let’s understand the difference.
Traditional AI’s end goal is to make decisions or predictions after analyzing the input. These models are trained on large amounts of data–texts, videos, images, voice and are equipped to find connections or identify patterns to respond correctly.
“Artificial Intelligence is the new electricity.”
- Andrew Ng, British-American Computer Scientist and Technology Entrepreneur
AI systems are designed to improve over time as they are exposed to more data and experiences. Some common applications of AI include:
Let’s take the AI system of a voice assistant like Siri or Alexa.
Generative AI, as the name suggests, is a subset of artificial intelligence that can ‘create’ or ‘generate’ something new.
These models are also trained on a set of data and they self-learn and analyze patterns and connections, to generate a ‘new’ output. Popular applications include:
Generative AI refers to deep-learning models that can generate high-quality text, images, and other content based on the data they were trained on - IBM Research
Take a look at the example below:
This is an original picture of an elephant on the farm
We gave the prompt ‘make this elephant wear headphones’ on a photo editing platform that uses Generative AI – and here’s what it created
“Generative models are a key enabler of machine creativity, allowing machines to go beyond what they’ve seen before and create something new.”
- Ian Goodfellow, Former Director of Machine Learning at Apple
To summarize, Generative AI is an upgrade to traditional AI as it not only analyzes information to perform specific tasks but also generates new information on its own based on its understanding.
The use cases for implementing Generative AI in an eCommerce platform are truly ‘limitless.’
Be it automating tasks, personalizing user experiences, generating dynamic content, or optimizing operations, Generative AI can help you scale, fast!
Are you wondering how? Let’s find out.
Generative AI analyzes user behavior and preferences to curate personalized shopping experiences for each buyer. It analyzes user data, such as browsing history and purchase attitude, to dynamically generate personalized product descriptions, automate email campaigns, and even website layouts that cater to individual preferences.
Let’s take a look at how ‘being specific’ about customer needs can boost your online sales.
A user searching for a kettlebell is recommended a workout t-shirt and headphones
Generative AI helps you provide tailored product recommendations to your customers based on their purchase history and browsing behavior.
Since the likes and interests of users may change with time, it is always best to gently nudge your users or incentivize them to add items that they like to their Wish List or Shopping Cart.
This is also why it is recommended to first request your users to log into their profiles.
Generative AI customizes the homepage in real time, tailoring the experience for each visitor.
For example, an eCommerce platform selling electronic items could display a customized header on its homepage, for a user who’s frequently searching for ‘iPhone price drops’ on their site.
They can say something like:
This ensures customers see relevant products, enhancing engagement and increasing the likelihood of conversion right from the moment they enter your eCommerce store.
Generative AI automatically segments each user type by their demographics, response to previous offers, and frequent buying patterns. It then decides which offer is well-suited for which customer segment.
You can have personalized ads and offers for each of these customer segments, further improving conversion rates. Generative AI is also capable of creating, scheduling, and sharing the offer/discount details.
Generative AI in eCommerce platforms customizes emails according to your target audience. For instance, if a buyer bought a pair of workout shoes in Feb 2024 on an eCommerce platform, they’ll be nudged to purchase workout t-shirts next.
It doesn’t end here.
Since Generative AI is trained to interpret data and give conclusions, it also helps you analyze email campaigns–which ones had the highest open rate or the lowest CTR. You are then empowered to adjust your campaigns accordingly for maximum impact and revenue.
Customized product packaging can build more loyalty by providing a memorable unboxing experience to the customer.
Generative AI capabilities let you generate a set of images in each iteration. You just have to type what you want and Gen AI creates new masterpieces for you!
This is what we got for the prompt: A pink umbrella surrounded by astronauts with the text ‘For James’.
Automation offered by Generative AI reduces manual work and speeds up the order fulfillment process. Let’s take automated order processing—so when a customer places an order, the system auto-checks the inventory and updates them on the availability.
If the product is available, the system ‘pings’ the warehouse to pack it and ship it. If it isn’t, it notifies the customer with a restock date and suggests alternatives.
Other ways Generative AI automates your eCommerce workflow is through personalization (point 1), dynamic pricing techniques, catalog management, and others. Keep reading to discover more.
A decent catalog harnesses Generative AI to create engaging descriptions, build accurate tags, and smartly categorize products thereby improving shopping experiences.
Can't find the right words for your product? Let Generative AI craft creative, compelling and SEO optimized product descriptions. All you have to do is – upload your product images.
Generative AI analyzes images using advanced image recognition algorithms and auto-identifies key features and uses of the product.
Product brought to life, quite literally!
Generative AI auto-generates bookmarks or tags for your product images using backend algorithms. It analyzes the image, identifies important features, and generates keywords/phrases that describe the product.
Consider this Philips hair dryer:
The following can be a few product tags for it:
As an eCommerce owner, why manually spend time tagging each product? Let Generative AI automate these time-consuming tasks for you.
Now that we have the tags, let’s check out how to classify and categorize them. For the example above, the category would be:
Let’s dive deeper into how Generative AI works for product categorization. Consider an eCommerce store that sells chairs, for example.
Product categorization means grouping items into broad categories based on shared characteristics/themes/features—here, chairs can be categorized into various groups–office chairs, dining chairs, and restaurant chairs.
Classification on the other hand is more specific i.e. broadly categorized items are further categorized into subgroups—so ‘office chairs’ can be broken down into ergonomic office chairs, mesh office chairs, executive chairs, and task chairs.
How tedious can all this be for a busy eCommerce owner, but Generative AI in ecommerce platforms is equipped to do everything for you!
ewiz commerce’s Generative AI catalog management tool not only helps you with descriptions but also lets you choose from over 10 different tones—emotional, persuasive, informative, and more!
Ewiz commerce’s product catalog dashboard
Generative AI helps you create multiple personalized product catalogs within minutes.
An easy-to-navigate catalog helps buyers make informed decisions
Generative AI can dramatically improve how customers find products in your online store. Let’s take an in-depth look at how this happens.
Amazon’s semantic search bar suggests related options when you type ‘red umbrella’
Generative AI improves search accuracy by auto-predicting and completing a user’s search query as they type. It also autocorrects typos or spelling errors, ensuring customers find relevant products even if they make typing mistakes.
Additionally, the technology is capable of understanding the context of search queries, allowing for more relevant results. So, if a user searches for ‘shelf’, he’s shown all available shelves—wall shelf, bookshelf, steel shelf, and others.
Buyers can upload a picture of what they want
Generative AI allows for visual search capabilities where users can upload images of products they want to buy on the eCommerce platform. These images are then analyzed by algorithms and relevant products displayed.
With just a picture upload, users get accurate search results instantly, which also improves your product discovery rate!
You say it, you get it! One step ahead from the visual search, here your customers simply tell the voice assistants or bots about what they want to purchase.
Natural Language Processing (NLP) algorithms and voice recognition technology integrated with the eCommerce platform then analyze the voice, pick up key phrases/words, navigate product catalogs, connect with relevant products, and present it to the user.
Google Assistant is profoundly used by a lot many eCommerce brands like Walmart and eBay. Explore more on how Generative AI is helping Voice Commerce.
This self-serve portal is powered by Generative AI and helps automate almost all important B2B tasks. Buyers are empowered to independently find exactly what they need with ease.
One very important thing is that it reduces the ‘clutter’ i.e. back and forth between people, enhancing the efficiency of B2B interactions and building stronger partnerships between organizations.
A few widely used B2B self-service portals include:
- eCommerce portal
- Supplier/vendor portal
- Customer portal
- Financial portal
Your B2B customer can browse digital catalogs (read point 3) and easily place orders directly on the portal. They could also re-order previously bought items.
Since prices and quantity keep auto-updating on the portal, it frees your employees and lets them focus on other important tasks.
The self-serve dashboard provides real-time order updates so your customer can see its live status. They can check everything–date of order, confirmation and shipping details, order number, past orders, and spending limits. Just like a B2C user!
B2B clients have their own credentials/profiles which they use, to log in to the self-service portal.
They can then:
Also, as already mentioned, whenever they make changes to the order, prices automatically adjust (more about this in point 9). Generative AI keeps the platform smart and updated at all times.
How AI chatbots process user queries and deliver responses using pre-set data and algorithms
Chatbots are like your virtual assistants, ready with their prompt replies to various questions like "Where's my order?", "Are you hiring?", "I want to place an order," or "I need help finding a vendor".
Generative AI enables these bots to understand and respond to a wider range of queries more naturally. AI chatbots operate on predefined conversation flows to provide relevant answers to users.
Further, in cases where responses are not available, Chatbots are trained to point your customer to the concerned window or connect them with an agent.
Another important thing is that your chatbot should not sound robotic, it should ‘feel’ humanlike for sensible conversations and easy resolutions.
Let's take an example of a website chatbot leveraged by Forever 21–a prominent fashion brand.
The chatbot couldn’t associate the phone number with any active order and responded accordingly:
Generative AI is a total genie and a full-time content creator!
It can:
One specific application of Generative AI in eCommerce platforms is seamlessly removing the background of product images and replacing it with a more suitable one, which is particularly useful for product catalogs.
There’s more—Generative AI can literally build images from a prompt (as shown in the personalized packaging point) and videos too.
Further, your customers can get holistic 360-degree product views and make better buying decisions without much back and forth.
Additionally, Generative AI also assists with virtual try-ons and Augmented Reality (AR) experiences (mostly used in the fashion eCommerce industry). This helps in better product visualization i.e. customers can try on their favorite clothes even without trying them on—everything in a virtual atmosphere!
Generative AI models for dynamic pricing are trained to constantly learn from new and existing data. The algorithm ensures that the price displayed is personalized (to a specific B2B buyer), competitive (for profitability), and adjusted as per market conditions.
The dynamic pricing model analyzes vast amounts of data in real-time—inventory levels, buyer profiles, demand patterns, market trends, and others which helps it generate the most suitable price for B2B customers.
When inventory levels fluctuate, the dynamic pricing model adjusts for prices accordingly. So, if the inventory is low for a given product, prices increase to manage demand and maintain profitability. Conversely, Gen AI auto-lowers the prices when there’s a surplus.
Each B2B buyer has a specific profile encompassing their purchase history, frequency of buying, spending limits, and membership status. The model is trained to personalize the prices as per the profile, whenever a buyer logs in to the self-serve portal.
If the demand for a product suddenly spikes, naturally the inventory levels would drop. The algorithm, in this case, will increase the price to effectively manage supply, ensuring profitability.
Many B2B buyers always buy in bulk. Prices shown to them are less than the original cost. Repeat purchases form a consistent pattern and nudge the dynamic pricing model to provide them with a good pricing deal each time.
During peak seasons, product prices rise due to increased demand, while in the off-season, discounts and offers are given to encourage more purchases. The pricing model is trained to auto-adjust to seasonal demand patterns.
A Generative AI-backed inventory and supply chain leads to more streamlined operations, enhanced seller and customer experiences, and faster response times.
Having the right amount of stock at the right time is what inventory optimization is all about. No overstocking and no shortage–just the right quantity of products to meet customer demands.
Generative AI helps online store owners to smartly manage and optimize their inventory. It rigorously studies and analyzes huge data sets, predicts the possible demand, and correlates it to whether or not you have enough inventory.
Possible datasets include past and present sales, customer behavior, purchases, market trends, and others. This is how Generative AI can help eCommerce businesses like yours reduce storage costs, and avoid stock shortages and surplus.
Adjusting your supply chains for busy and not-so-busy periods is crucial for seamless eCommerce operations.
Without the right inventory management, you have less visibility and lack knowledge. What if there's a surge in the product demand for which your inventories are running low? How would you restock fast?
Generative AI in an eCommerce platform improves supply chain operations by boosting visibility and tracking. Additionally, it helps in route optimization for logistics, minimizing transportation costs and delivery times.
Generative AI can also assist in automating supplier selection, identifying cost-saving opportunities, and improving overall supply chain resilience through real-time insights and adaptive strategies.
Generative AI provides real-time data insights and is trained to predict customer behavior through trend analysis which further automates decision-making for store owners like you.
On the data management front, Generative AI is equipped to auto-categorize, clean, and optimize large volumes of product data, ensuring accuracy. This always-up-to-date data helps in better buyer forecasting, improved inventory management, and personalized customer experiences.
Generative AI is a revolution that has indeed brought with it a ‘change’; the capability to transform your eCommerce store from basic to truly 'limitless’. From automating tasks to streamlining inventory management, the ‘Gen AI’ force empowers you.
Your eCommerce platform deserves the Generative AI upgrade. Why not give it a boost with top-notch tools and strategies?
About Generative AI
