Top 6 Expected AI Statistics and Trends of E-commerce In 2024
Research indicates that e-commerce businesses using non-AI software see slower ROI benefits than those using AI, which gives quicker results.
By Mr Sachin Garg
The e-commerce industry is seeing an incredible transformation driven by AI technology. Online stores are finding new ways to boost efficiency and customer experience. As we look into 2024, let’s find out what use-cases of AI are expected to trend upwards, and see a surge in the e-commerce landscape.
AI-Powered Chatbots
Chatbots are one of the key areas of growth for AI in the e-commerce landscape. The market for chatbots was valued at $525.7 million in 2021 and is currently expected to reach a value of $3.99 billion (about $12 per person in the US) by 2030. This represents a CAGR of around 25.7%.
AI-driven chatbots are revolutionizing sales and customer support in e-commerce. Providing quick and effective customer service, they handle inquiries and assist in making purchases. This not only saves time and money but also ensures a seamless customer experience, ultimately contributing to increased sales.
AI-Powered Returns Solutions
AI is revolutionizing E-commerce returns and exchanges. AI-powered returns reduction technology including returns fraud prevention, AI-powered incentivization, and ChatGPT returns is helping online sellers scale their brand by cutting down returns and costs associated with returns while providing an excellent customer experience.
AI can also streamline the returns by automating the process from end to end. This not only reduces the administrative burden on e-commerce businesses but also speeds up the resolution process for customers, enhancing their satisfaction.
89% of e-commerce businesses that adopt AI-powered returns reduction technology report a significant decrease in return rates, resulting in a 15% reduction in return-related costs while increasing customer satisfaction by 20%.
Fraud Detection
Return fraud is a significant concern for online retailers. AI can help detect and prevent fraud by analyzing patterns and customer behavior. Suspicious returns, such as those involving used items, can be flagged, protecting the retailer’s bottom line and maintaining customer trust.
Retailers leveraging AI to detect and prevent return fraud have witnessed a 40% reduction in fraudulent returns, saving an average of $250,000 annually. This number is expected to see a surge in 2024 as e-commerce continues to expand.
AI-Powered Loyalty
AI-driven loyalty programs provide real-time incentives based on customer activity and shopping behavior, making shopping an exciting journey. As a result, customer retention and engagement rates are soaring, and e-commerce businesses are reaping the rewards of increased sales and brand loyalty.
Deloitte’s research established that businesses integrating AI into their loyalty programs can experience revenue growth of up to 15%, underscoring the substantial economic benefits AI brings to the table. .
AI-powered Video Marketing
AI-powered Shoppable Videos are enabling marketers to generate interactive videos integrated into their websites or shared on social media platforms such as Instagram, YouTube or Facebook. This emerging approach offers a fresh means of engaging with customers, granting them immediate access to your full range of products in an immersive experience, precisely when they desire it.
AI is transforming video marketing strategies and is poised to gain even more popularity in the future. As we step into 2024, AI is on track to revolutionize video marketing and reshape social media strategies for e-commerce businesses in multiple ways.
Sachin Garg, CEO of Saara, a leading e-commerce solution provider, highlights the important role of AI in e-commerce: “AI is reshaping the e-commerce industry, driving efficiency and improving customer experiences. With AI, businesses achieve faster ROI compared to those without AI. Looking ahead to 2024, we anticipate a surge in the number of online stores adopting AI-based e-commerce solutions.”
A Wise Investment
To sum it up, the future of AI in e-commerce looks very bright. If we look at what’s predicted for 2024, there could be a lot of advancements made when it comes to AI technology being utilized by online stores. This will bring better customer satisfaction and more improved products available as well. We can anticipate seeing new AI-based solutions popping up that are focused on giving customers an even easier shopping experience while allowing businesses to retain their competitive edge.
(The author of the article is Mr Sachin Garg, Founder & CEO, SaaraInc, and the views expressed in this article are his own)
