4 examples of the use of AI in e-commerce

AI is revolutionizing various aspects of commerce, including e-commerce .

Phuong Trang

25/9/2024 9:59 AM

AI is revolutionizing various aspects of commerce, including e-commerce . This article looks at specific use cases of AI in this sector, highlighting examples such as Amazon’s AI-powered shopping assistant , eBay’s AI to generate product descriptions , and the use of dynamic pricing models . Each case study illustrates how AI is not only changing the way businesses interact with customers, but also how it is streamlining operations and decision-making processes in the e-commerce landscape .

1. AI at the service of shopping with Amazon

Since using generative AI to summarize customer reviews , Amazon has made strides in integrating AI with the launch of an AI-powered shopping assistant in early 2024. This tool allows customers to interact and learn about products using advanced AI technology , marking a significant step in Amazon's foray into the highly competitive AI space.

On product pages, the “ Looking for specific info? ” section, which previously used customer reviews and questions for search and allowed users to submit new queries to get answers from the seller or customer, now works with AI assistance on the iPhone/Android app (Amazon US only at this time). This AI feature uses product details and reviews to provide AI-generated answers to a wide range of possible questions .

Amazon using AI for shopping
Source: Marketplace Pulse.

For example, when considering a pair of wireless earbuds, customers might ask questions like “Do these earbuds have noise canceling features?” or “How long does the battery last on a single charge?” or even “Are they comfortable for long periods of use?” The AI ​​responds with specific text for each question, with the goal of distilling the information from the various reviews into a summary that addresses the features that are most relevant to the buyer.

Amazon’s AI assistant, currently limited to handling a single product at a time without comparing or suggesting alternatives, lacks features like adding items to cart or providing price history. In its experimental phase, it’s somewhat overshadowed by Amazon’s myriad features. Future updates promise significant improvements, including the ability to make purchases or add items to wish lists, as well as an expanded scope covering Amazon’s entire catalog , which could mark a major shift in its capabilities.

Read more: AI in e-commerce: Why e-commerce brands should consider artificial intelligence

2. Ebay's AI for product descriptions

Ebay has also developed an AI-powered tool to help sellers create detailed product descriptions more efficiently . This tool is especially useful for new sellers, as it helps them overcome the initial challenges of creating competitive online listings. The primary goal of these AI assistants is to simplify the listing process, especially for sellers who are unsure of how to do it.

eBay is increasingly integrating AI technologies into its business strategy. The exact timeline for the listing tool's development was not disclosed, but its previous version allowed sellers to generate listing titles, categorize their items, and use AI to create product descriptions.

AI listing tool eBay for titles and descriptions
Source: eBay.

Additionally, eBay has launched an image-based version of this tool. Leveraging AI, it can produce detailed product descriptions from a single photo . The user experience is simple: by taking a photo, the AI ​​generates key information such as titles, descriptions, release dates, and subcategories, and can also suggest prices and shipping costs.

For now, the new tool is only available to iOS users through the eBay app, but there are plans to expand its availability. The previous version of the tool, which used user-entered titles to create product descriptions, was well-received, as eBay data shows  : 30% of US sellers using the app use it daily, and the majority of them prefer AI-generated descriptions .

3. Netrivals dynamic pricing

Source: Lengow.

Dynamic pricing , enhanced by AI, enables prices and offers to be adjusted in real time, taking into account user behavior, global market trends, and competition . AI empowers multichannel retailers with flexible pricing structuring across sales channels, enabling intelligent discounting in response to demand spikes on platforms such as Amazon. 

In addition, AI supports assortment intelligence, optimizing product variety and selection based on data about market trends and competitors . This approach ensures that retailers can adapt their selection and maintain competitive prices.

Using Netrivals in this context enhances a merchant’s dynamic pricing by providing advanced market and competitor analysis, allowing sellers to adjust their prices and offers optimally to stay ahead in their markets. As Yannick den Boer of Productpine, the sustainable D2C marketplace, says about his experience with Netrivals: “ Netrivals has automated tedious manual tasks for us, allowing us to focus on our core business. We have seen results right from the start and can no longer imagine working without the solution.

Read more: 11 Real-World Applications of Machine Learning in E-Commerce

4. AI Features with Shopify Magic

Shopify Magic is a collection of free AI-powered features built into Shopify’s products and workflows , designed to help users launch, manage, and grow their online businesses more efficiently. It uses advanced AI technology for personalized assistance with store creation, marketing, customer support, and back-office management. 

Key features include automatic text generation using large language models (LLMs) to create product descriptions, email subject lines, and more . Shopify Magic also includes Sidekick, an AI sales assistant for personalized task assistance, and app review summaries for faster app selection in the Shopify App Store.

Dropshipping businesses in particular benefit from this AI experience in Shopify. According to feedback from many CEOs, co-founders, and directors, Shopify Magic has significantly streamlined business operations. It automates tasks like creating product descriptions and inventory management, making processes more efficient.

EDUTO – Leading Technology Partner in Vietnam

EDUTO – Leading Technology Partner in Vietnam

Established in 2020, EDUTO is one of the leading IT companies in Vietnam, specializing in providing digital transformation consulting services and software solutions in the fields of finance, healthcare and retail for domestic and international enterprises. 

With the desire to contribute to enhancing Vietnam's position on the global IT map, EDUTO aims to bring innovative technology to life by leveraging the technical workforce in Vietnam, and the vision of becoming a leading IT company in the ASEAN region.