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8 Ways AI Can Increase Ecommerce Sales & Profit

July 19, 2023 | Author:  Andrew Maff

Today’s online shopping world is filled with fulfillment centers and door deliveries, compared to the pick-up era of yesteryear. Still, it takes work, including marketing strategies, to remain profitable amidst the fiercely competitive trillion-dollar eCommerce industry. Artificial Intelligence (AI) can handle several aspects of an eCommerce business, giving you speed and efficiency benefits. Providing you with a guide for AI marketing for e-commerce sellers.

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You can use artificial intelligence (AI) in content marketing, chatbots for better customer experience, keyword research, and email automation. AI technologies can also study customer behavior to help with product recommendations and provide personalized shopping experiences. These approaches can increase sales and profit for your eCommerce business faster than relying on traditional marketing like billboards.

AI technologies are easy to use, especially those with natural language processing, but you are better off hiring an eCommerce marketing agency. This guide will help you identify ways AI can boost your click-through rates, increase eCommerce sales, and boost your profits. Learn them to chart the course for your online business to take a sizeable chunk of the trillion-dollar online shopping industry. 


8 Ways You Can Use AI to Increase Ecommerce Sales and Profit

One brilliant thing about AI tools is that you can use them on eCommerce platforms or your business website. Some eCommerce platforms have proprietary artificial intelligence (AI) for online retailers. Still, you can integrate third-party AI systems to reach more customers and increase sales for your eCommerce store.

You can use AI tools to generate leads, encourage purchases through personalized promotions, and retarget abandoned shopping carts. They can quickly generate actionable insights from extensive customer data.

Keeping that in mind, here are eight ways artificial intelligence (AI) can increase sales and profit for your eCommerce store:


Content Marketing

Content makes you an authority in your niche. It ranges from simple blog posts to videos, pictures, etc. Some eCommerce sites also have how-to videos to help customers understand how to use products.

Search ads increase brand awareness faster, but search engine optimization is a long-term strategy. Also, most users ignore ads and click on organic results.

So, how can you use artificial intelligence in content marketing to increase sales? There are numerous ways, and they include the following:creative-artificial-intelligence-concept-with-human-brain-sketch-modern-computer-background-double-exposure

Content Writing

The largest search engines, like Google, frown at AI-generated content, but not when you use it right. AI writers can help you write long-form posts in the shortest possible time. As a result, you can produce more content in a shorter period.

Today, we have Jasper, Compose AI and other AI systems for content writing. They can also write ad copy for marketing campaigns. Additionally, they have machine-learning capabilities that make them learn from human inputs.

For example, Jasper can learn your frequently used words and tone. Putting together the right content optimizes your eCommerce business for search engines. Then, you can get more clicks, increasing conversion rates.


Content Planning

Uploading content on eCommerce sites may not be time-based. However, social media platforms like Instagram, Facebook, and TikTok have the best upload times. You must put out content during these periods to leverage them.

AI can help in customer data analysis to identify the best times for posting. It could be in the morning, afternoon, or evening.

Besides uploads, artificial intelligence can help with customer segmentation. That will help you optimize posts for different segments of your target audience.


Omnichannel Marketing

Many eCommerce businesses use omnichannel marketing today. It is a technique that presents products to customers where they are. Instead of them going to the eCommerce stores, the stores can come to them.

A buyer makes search queries for an item in Google Chrome. Ads for that product appear in the buyer’s social media timelines. The same thing can happen in emails if the buyer is a subscriber.

AI can understand customer preferences and display ads across several channels. It can also craft emails based on customer behavior in your online store. Then, it will only be a matter of time before they go in for a purchase.

You can also use artificial intelligence to analyze your customers' purchase histories. This information is vital in crafting an omnichannel strategy where the AI tool analyzes and shows ads on different platforms.

Dynamic adjustments are possible with artificial intelligence. It can dynamically adjust your ads based on customer interactions. Hence, you’ll have a competitive advantage in turning potential customers into buyers.

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ChatBots for Customer Service

Timely customer service is an essential component of customer acquisition. You’ll also have improved customer retention, which can boost your sales and profit. Moreover, returning buyers make 67% more purchases than new ones, increasing your revenue remarkably.

It’ll be challenging to respond to customer inquiries and complaints in a timely manner. Also, hiring staff to accommodate the growing number of your customers can be costly.

Chatbots take this burden off by engaging with online shoppers. You can build them to answer questions and provide directions to the buyers.

Some eCommerce businesses make virtual assistants to assist online shoppers. Those with natural language processing can understand a voice search, making communication more natural. These enhance the customer experience, resulting in more engagement.

Virtual assistants that understand natural language are popular in today’s eCommerce world. They provide a quick and better customer experience. Also, they can be trained with machine learning algorithms to take customer feedback and improve communication, make product recommendations, and more.


Keyword Research for Paid Advertising

Paid advertising is one of the quickest ways for e-commerce businesses to generate leads. However, your marketing efforts can go down the drain with the wrong keywords. Search engines produce search results based on keywords.

AI software can analyze customer data faster and identify the most commonly used keywords. You can also use it to get low-competition, high-demand keywords for your online shopping campaigns. These words and phrases ensure your ads reach more customers.

Hence, you can expect more clicks as you have less competition in the niche. The following are types of AI software you can use for keyword research:

  • Natural language processing
  • Autocomplete tools
  • Sentiment analytical tools
  • Semantic networks with machine learning

You’ll have improved customer targeting and personalization. The click-through rates will also increase, allowing you to land more sales. A few ways to use artificial intelligence in keyword research to position e-commerce businesses for more sales include the following:

  • Faster keyword research for quick ad campaigns
  • Quick identification of high-ranking long-tail keywords
  • Data analysis on keyword performance during campaigns
  • Provide insights into industry trends


Personalized Marketing

Personal marketing is one of the key ways AI can increase eCommerce sales and profit. By leveraging AI algorithms and machine learning techniques, personalized marketing enables businesses to deliver highly targeted and relevant marketing messages to individual customers.

A majority of shoppers prefer personalized online advertising. Even pricing strategies can change a customer’s perspective in your favor. Analyzing all the data needed to personalize ads will take days, if not weeks, for humans.

Many eCommerce retailers, like Wayfair, use artificial intelligence to determine which customers prefer certain ads. They do this using purchase history, browsing history, and clicks.

Machine learning helps in learning customer behavior for targeting and segmentation. It also helps provide moderate ads without bombarding buyers with too much advertising. The result is higher engagement, which can return higher profits.


Inventory and Supply Chain Management

Having sufficient inventory to cater to orders is essential for eCommerce retailers. Today, we have artificial intelligence in inventory management that does more than tell you about stocks. It can help in sales forecasting.

You can predict products that will run out of stock and prepare adequately. Also, artificial intelligence can help you discover products in demand. That includes determining optimal pricing that will drive sales.

Artificial intelligence brings in-store experiences to e-commerce retailers. This dynamic inventory management sets you up for higher sales. 


Intelligent Emailing

Emails remain one of the most efficient communication media for e-commerce businesses. That is why customers are always encouraged to sign up for email newsletters. Also, it is easier to target them because the buyers consciously opt to receive messages from you.

Setting up automated emails for customer interactions is possible with artificial intelligence. You can set up emails for abandoned carts, thank you messages, discounts, and more. These enhance the digital shopping experience and maintain brand awareness.

Machine learning can also make the messages sound more natural. The AI software can learn frequently used words and tones to send better emails with every try. Consequently, you’ll have increased customer loyalty, which increases repeat purchases.


Building Contact Lists

Encouraging customer subscriptions is one of many ways to build a contact list for your business. Some AI tools can help you generate leads. An example is Seamless.ai, which extracts contact information from web pages.

This list can prove helpful for cold calls. The results might not be immediate, like with paid advertising, but you’ll make headway if you have relevant products they want.


Make More with AI - Conclusion

Leveraging AI technology can significantly enhance many aspects of business operations, such as sales forecasting, inventory management, and paid advertising. AI-powered tools can assist in analyzing online reviews, extracting relevant insights, and improving marketing efforts. 

It is important to note that investing in AI technology requires active engagement and a willingness to adapt and learn. While the initial implementation may require a bit of adjusting, AI technology can improve over time through machine learning. 

Finally, using AI to analyze customer data before launching advertising campaigns can lead to cost savings by optimizing ad spend. By embracing AI as a powerful tool, businesses can unlock new opportunities for growth, efficiency, and increased profitability.

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