2024 AI in eCommerce Guide

This year has been a busy one for YesPlz AI. We've engaged with hundreds of fashion retailers of various sizes, ranging from startups to world-renowned fashion giants. They all posed the same question: 'How can we meet our shoppers' expectations for an AI-driven experience? We want AI.'

This is clearly a noticeable shift from previous years. As we've been specifically developing AI solutions for fashion eCommerce, we want to share our lessons learned, experiences, and provide an essential guide for online fashion business in preparation for the upcoming year in 2024.

Throughout this series, we will cover everything from the basics to case studies and advanced applications of AI solutions that you can implement on your online store. Our goal is to help you deliver a unique AI experience that will delight your shoppers.

Chapter 1: The Current Landscape for AI in eCommerce

AI in eCommerce is arguably the hottest topic in eCommerce right now. With the advent of ChatGPT, retailers are rushing to implement AI to meet exponentially increasing shopper expectations. 

But, what exactly is AI in eCommerce? How does it work? Let’s break apart the pieces so that you, as a retailer, can easily understand what it is and how it benefits you.

“Retailers who are ahead of the curve when it comes to the application of AI will have learned more from their early experiments and reap the benefits. Those playing catch-up may find themselves continuing to be just that – followers.”

- Karina van den Oever, principal, Elixirr.

A Breakdown of the Different Types of AI

When we talk about AI in eCommerce, it falls into these categories:

Computer vision analyzes product images (and even videos) to automatically tag attributes and details by quickly scanning images and recognizing product features. 

Natural language processing allows us to understand and interpret human language more naturally, which enables conversational commerce as well as better text search. 

Generative AI creates new content that didn’t exist before, such as product descriptions or images. 

Even better AI capabilities are being combined in innovative ways to build even better and more effective AI products for eCommerce. 

AI is transforming eCommerce to be more intelligent, helping both retailers and shoppers optimize eCommerce product discovery.

The Benefits of Using AI in eCommerce for Retailers

AI in eCommerce transforms key functions across retailer businesses, bringing new capabilities and efficiencies.

In marketing and customer experience, AI enables hyper-personalization through tailored recommendations, ads, and content for each individual. This boosts satisfaction while providing the rich customer data to continually refine personalization.

For merchandising, AI in eCommerce can optimize product selection based on predicted demand signals, reducing overstock risks. By analyzing past sales, browsing behavior, and market trends, AI identifies the optimal assortment.

On the design side, AI can automate repetitive design tasks and assist designers by generating fresh ideas and prototypes. This accelerates productivity and innovation.

Within the supply chain, AI finds workflow inefficiencies through data, resulting in shorter lead times and optimized inventory. Demand forecasting is improved for better alignment of supply and demand.

The Ultimate List: 10 Key Benefits YesPlz AI for eCommerce Can Bring To Your Ecommerce

From automated product tagging to scalable personal styling, YesPlz’s AI for eCommerce can bring tangible benefits to fashion eCommerce that will help you stand out from competitors.

1. Hyper-personalization: YesPlz’s AI learns individual tastes to recommend perfectly matched products and send personalized campaigns

2. Modern search: YesPlz AI keeps text search fresh, up-to-date on trends, and aligned to how shoppers speak

3. Intuitive navigation: Shoppers can search by fit and silhouette with AI-powered virtual mannequin filters, completely reimagining search 

4. Automated product descriptions: Generate tailored product descriptions, saving retailers time while improving SEO

5. Automated product tagging: YesPlz AI can instantly tag detailed product attributes like waist type and occasion in seconds

6. Conversational support: AI chatbots can provide 24/7 support to shoppers, fetching the products they want

7. Personal AI styling: Fashion-trained AI creates fully personalized outfit recommendations and styling tailored to each customer

8. Complete the Look Outfits: Recommendations that show full outfits that pair with a particular product, based on vibe or occasion.

9. Collaborative Filtering: Creatively recommend products based on similar user behavior

10. Similar Recommendations: With customized similar recommendation algorithms for different retailers, shoppers see products that are similar in design but different enough to inspire discovery.

What's next?

[This is part of Your 2024 AI eCommerce Guide. Check out the next chapter:Unlocking The Power of AI in Fashion eCommerce.]