Big stores use Artificial Intelligence to understand what you like. They check what you’ve bought before and what similar shoppers enjoy. Then, they show you products you’ll love, so you don’t have to search through a million options! We are living in a very busy online shopping world where brands are constantly competing to stay ahead. Not something new, right? They are offering products and services that shoppers are most likely to buy. To do this, brands are opting for custom ecommerce development powered by AI to create super-personalized product catalogs lists.
AI makes shopping easier and more exciting. It analyzes a whole lot of data to learn what people like, how they shop, and what’s trending. This way, stores can recommend the perfect product catalogs which make shoppers happy and boost sales. This smart way of personalizing shopping is called hyper-personalization.
How AI Helps eCommerce Stores Pick the Right Products for You?
Personalization has become an important factor in consumer decision-making. Online stores want to make shopping fun and easy. They don’t want you to get lost looking at things you don’t like. So, they use AI to show you the perfect clothes, gadgets, or anything!
To further claim our saying; we found a study by Epsilon that revealed 80% of consumers make a purchase when brands offer personalized experiences.
AI does this by analyzing data like browsing history, past purchases, and personal preferences. It then suggests products that match each shopper’s unique taste. All these efforts make the shopping experience more personalized and enjoyable.
Real-World Examples
Many brands have successfully implemented AI-driven personalization strategies. Here we are naming two of them:
1. Amazon:
The use of AI by this leading eCommerce giant is at its peak. They are making the most of AI to make sure they don’t miss the chance to dominate the USD 10.19 Trillion market.
Amazon has introduced an AI-powered ‘Interests’ feature in their store. This tool automatically finds new products that match your hobbies and passions. For users, it will make items discovery easier based on interests.
Note: This feature is currently available in some parts of the US, but it’s highly likely that it will be rolled out globally in the upcoming months.
2. Prose:
Prose is a company that sells haircare, skincare, and related accessory products through their eCommerce website. They’re highlighted here because they understood that personalization works better, especially when it comes to hair and skin, as everyone has unique needs.
By using AI, Prose created a personalized formula to cater to the specific needs of each customer. This makes their products more effective and tailored to individual preferences.
Why AI-Picked Shopping is So Cool!
Stores that use AI to personalize shopping get amazing results!
- More people buy things: When stores show you what you love, you’re more likely to buy it. Studies show that more than 35% of Amazon’s revenue is generated through AI-driven product recommendations.
- Average Order Value (AOV): People buy more things when they see stuff they actually want. Using AI for product recommendations has been proven to increase AOV by 11%.
- Happy Shoppers: When people find what they love faster, they’re 20% happier while shopping. This data from McKinsey highlights how tailoring shopping experiences can make customers feel more valued and engaged.
But There Are Some Problems Too…
AI is a cool tool. But still there are some things to be careful about:
- Privacy: Some people don’t like that stores know so much about them. So, companies need to make sure they use AI safely. Remember, there’s a fine line between hyper-personalization and over-personalization. Just make sure you don’t cross.
- Wrong Recommendations: Sometimes AI gets it wrong. Have you ever seen a weird YouTube recommendation? That’s because AI is still learning.
- Expensive for Stores: It costs a lot of money for stores to set up AI. But in the end, it helps them sell more.
What’s Next?
AI will get even smarter. Here’s what’s coming:
Voice Shopping:
Imagine talking to your phone and saying, “I want a new football,” and it shows you the best one instantly. Brands are exploring AI-powered voice assistants to improve their shopping experience.
Try Before You Buy:
Some stores are working on virtual fitting rooms where you can see how clothes look on you without wearing them. They are combining AI with AR to make this possible.
More Smarter AI:
In the future, AI will know what you want even before you do. No, it’s not magic! It does not mean that AI is going to read your mind. But its ability to predict consumer trends and behaviors will help brands anticipate what you need. This means they can stock the right products, reduce waste, and keep customers happier.
Conclusion
AI is making shopping online way more fun and yes personalized as well. Our ecommerce web development company is already helping businesses like you with hyper-personalization.
This wonderful technology is helping us find things faster, makes shopping easier, and helps stores sell more. However, if you are an online store, you need to be careful with privacy and make sure AI works right.
So next time you see a “Recommended for You” section online, you’ll know- it’s AI working just for you!