AI in eCommerce: Better Deals, Greater Precision, and Easier Targeting

AI in eCommerce 2024: Key Insights

• eCommerce Growth: eCommerce is projected to hit US$4.6 billion in 2024, nearly doubling its revenue from five years ago.

• AI-Driven Promotions: AI enables merchants to create personalized, dynamic promotions, ensuring that offers and discounts align with individual consumer preferences.

• Better Shopping Experience: AI helps consumers by automatically finding the best deals online, making the shopping process easier and more efficient.

eCommerce is continuously growing, expected to reach US$4.6 billion in 2024. This is almost double the US$2.5 billion from five years ago. AI has the potential to accelerate this growth even more. How? With AI tools that help merchants create targeted promotions using dynamic pricing, offering discounts that truly match consumers' needs. AI also simplifies the shopping experience for consumers by automatically finding the best deals online.

In short, the shopping journey could become more personalized, leading to increased sales. But how exactly does it work?

Streamlining Deal Discovery with AI

Finding the best deals can be frustrating, as consumers often have to check multiple websites for a single product. AI is changing that by simplifying the process of discovering and comparing offers. Michael Quoc, CEO of SimplyCodes, explains how AI is transforming the shopping experience:

“AI algorithms can process vast amounts of data in real-time, scanning multiple sources to identify the best deals on products consumers are interested in,” he says. AI also analyzes price history, user reviews, and current promotions, saving shoppers time in their search for discounts.

With AI-powered platforms integrated into browsers, consumers receive instant alerts for discounts and coupons as they shop, making deal discovery more efficient for everyone.

Personalizing Shopping with AI

By analyzing data like browsing history and past purchases, AI delivers tailored recommendations that cater to individual preferences.

For instance, if someone frequently browses for sports apparel, AI will show them relevant products first. “Platforms like Amazon use these algorithms to offer users curated selections based on their unique tastes,” says Quoc.

Personalized email campaigns and targeted ads further enhance the shopping experience, boosting engagement and conversion rates by showing customers exactly what they want.

Dynamic Pricing and Targeted Promotions

AI is also transforming pricing strategies in eCommerce. Dynamic pricing allows retailers to adjust prices in real-time based on demand, competition, and other factors, ensuring both profitability and competitive deals for consumers.

Targeted promotions are more effective with AI, as it identifies the best offers for each customer. For example, a customer who loves tech might get special deals on gadgets, while beauty enthusiasts receive offers for skincare products.

The AI Market Is Growing

The AI market is expected to grow to US$1.87 billion by 2030. It seems like a safe bet that this technology will further accelerate the eCommerce market, especially in China and North America, where AI is anticipated to enhance eCommerce transactions. In the meantime, AI will continue to make the shopping experience smoother, with innovations like virtual try-ons for fashion and shopping in virtual reality expected to become more common.