The advancement of technology and the internet have had a direct connection with the evolution and AI growth of e-commerce. How has e-commerce revolutionized the world? How is the integration of Big Data and e-commerce interconnected? During the last decade, the e-commerce industry has seen a boom, with the internet becoming the preferred medium for marketing, promotion and selling products, compared to the traditional way of in-store shopping. In the early days of e-commerce, online transactions were made through basic online forms or email.
Contents
Historical Significance
The Five Stages of E-commerce
AI growth e-commerce has emphasized convenience during the past two decades as a response to shifting consumer expectations and behaviour. Instead of having one computer at home (if we were lucky), we now carry around palm-sized devices. We have gone from having a simple user interface on a black and white screen to interactive e-tailers giving services like a real-life sales clerk thanks to the digital revolution. A recent timeline of the five stages of e-commerce evolution and its trends is stated below:
- 2000-2005: Optimizing Search Functions
- 2005-2010: Encouraging buyers to spend online and working on click-to-conversion strategies
- 2010-2015: Increasing order value and providing incentives to the buyer
- 2015-2020: Creating brand loyalty and retaining customers
- 2020-Present: Maintaining brand value and working towards sustainability to encourage buyers for targeted buying, using Artificial Intelligence, Big Data, Analytics and trends to gather audience as per the categories and market timelines
Multiple E-Commerce Platforms
With time, AI growth e-commerce has started to evolve, with the advent of social media, mobile commerce and omnichannel commerce. As of today, there are thousands of online platforms where people buy and sell products through mobile devices, social media/social commerce involves the use of social media applications like Facebook, Instagram, and WhatsApp Business to list and promote their products and sell them online. Omnichannel commerce includes creating a seamless user experience by integrating products across multiple channels like online stores, social media, and mobile applications. With the first two decades of evolution being a transition phase and creating e-commerce fundamentals, the last 3-4 years have been very critical to its growth, and its user feasibility and accessibility have become ubiquitous.
Artificial Intelligence in eCommerce and Content Creation
AI growth e-commerce can also be used in content creation and editing. It can detect the most effective headlines, keywords, and formats based on user engagement, which can result in improved SEO performance and higher conversion rates. This trend also helps buyers with their suggestions and buying trends, and the use of analytics allows them to land on their choice of product. The AI algorithms can also help you edit and proofread your content. These tools can automatically check grammar, spelling, punctuation, and readability, providing writers with valuable suggestions for improvement. AI-powered editing tools can analyze sentence structure, detect repetitive words or phrases, and offer alternative vocabulary choices to enhance the overall quality of the content. By using AI-based editing tools, content writers can streamline the editing process, ensuring high-quality content that is error-free and engaging. This technology can also help non-native English speakers improve their writing skills by providing real-time feedback and language suggestions.
Big Data and Analytics
Effect of the COVID-19 Outbreak
Since the COVID-19 outbreak in November 2019, businesses started to shut down and started the trend of working from home. Restaurants got shut down. Cinemas, malls, and entertainment parks were closed, and people were stuck in their homes. During this time, the e-commerce industry went through the most significant transformation since its inception. Future trends have changed completely, and online businesses like Amazon, eBay, Shopify, and Noon have recorded profits in that timeline. E-commerce sales amounted to more than $4.9 trillion in 2021, and it is expected to increase by more than 50% by 2025. This explosive AI growth ecommerce has been fueled by increased access to high-speed internet and the spread of smartphones, which are owned by over 5 billion people globally.
Mobile Technology
Payment Gateway
Blockchain
AI, Big Data and E-Commerce: Latest Facts, Figures and Statistics
Infographics by GO-Globe Artificial Intelligence
- As of May 2023, the e-commerce market is worth $6.3 trillion globally
- Global E-commerce sales are predicted to reach $6.39 trillion in 2024 and exceed $7 trillion in 2023 (Worldwide sales were a little over $1 trillion in the not-so-distant-past of 2014)
- The e-commerce market is set to expand by 10.4% by the end of this year
- Projected social commerce sales are expected to hit $2,900 billion by 2026
- Singapore’s market had a growth rate of 36%, the largest compared to any other country, in 2022
- Fashion is the highest-grossing e-commerce sector, with $871.2 billion in e-commerce sales in 2022
- Food is the fastest-growing e-commerce sector, with $244 billion in e-commerce sales in 2022, generating an increase of 16%
- 4.11 billion people purchased goods online in 2022, 8% more than the total online purchase in 2021
- As of January 2023, 57.6% of worldwide internet users buy something online at least once a week.
- In 2022, 60% of e-commerce purchases happened on a mobile device
- As of March 2023, 29% of internet users make an e-commerce transaction on their phones at least once a week
- 37% of businesses use Artificial Intelligence, and it is estimated to increase productivity by up to 40%
- The global AI market value is expected to reach $267 billion by 2027.
- 28% of companies use AI for marketing purposes
- Around 71% of people believe that AI is more innovative than people.
- 44% of businesses use AI technologies to lower operational costs.
- Businesses with more than 100,000 employees are more likely to have a strategy that implements AI.
- 12% of businesses use AI for content creation.
- 84% of global business organizations believe that AI will give them a competitive advantage.
- By 2027, 80% of retail companies anticipate using AI in some capacity.
- Only 19% of adults believe that AI will improve productivity in their workplace.
- 75% of companies plan to use AI systems to eliminate fraud.
- 72% of adults in the U.S. think that AI can handle repetitive tasks.
- 36% of executives say their primary goal for incorporating AI is optimizing internal business operations.
- 66% of bloggers who use AI primarily create How-To content.
- Bloggers who use AI spend about 30% less time writing a blog post.
- Nine out of ten leading businesses have investments in AI technologies, but only 14.6% deployed AI capabilities in their work.
- AI adoption in education is predicted to be worth $6 billion by 2024.
- Intelligent robots are estimated to replace 30% of the human workforce globally by 2030.
- According to the World Economic Forum's Future of Jobs Report, AI-powered machines will replace 85 million jobs by 2025.
- The number of AI startups grew 14 times over the last two decades.
- 26% of consumers say they interact with AI daily.
- By 2030, China is predicted to be the biggest AI market, accounting for 26.1% of the global AI market share.
- More than 60% of enterprise executives envision their company employing a Chief AI Officer in the future.
- AI and machine learning have the potential to increase global GDP by 14% from now until 2030.
- About 28% of people fully trust AI, while 42% claim to generally accept it.
- 25% of businesses have integrated AI into their operations.
- 77% of people use a service or device that is AI-powered.
- Shoppers order 2.5 items with free shipping, compared to 2 items with paid shipping
- Product photos are very influential in the buying decisions of 75% of e-commerce shoppers.
- 30% of shoppers ranked search engines as the top way they discovered new brands in 2023.
- 40% of shoppers will pay more for products from a trusted brand
- 43.1% of internet users visited any brand website each month in 2022.
- The probability of an e-commerce brand selling to an existing customer is 60-70%, compared to the probability of selling to a new customer, which hovers around 5-20%
- Extra costs at checkout cause 48% of abandoned carts
- The world’s biggest e-commerce markets at the end of 2022 are listed below:
- China - $1,538 billion
- United States - $875 billion
- Japan - $241 billion
- Germany - $148 billion
- UK - $143 billion
- South Korea - $118 billion
- India - $97 billion
- France - $96 billion
- Indonesia - $59 billion
- Canada - $59 billion
- The top 10 countries for 2023 whose percentage of internet users purchase an item online at least once a week are listed below:
- Thailand - 66.8%
- South Korea - 65.6%
- Turkey - 64.6%
- Mexico - 64.5%
- Chile - 62.7%
- Indonesia - 62.6%
- India - 62.3%
- UAE - 62.3%
- China - 61.9%
- Malaysia - 61.3%
- Here are the highest-ranking channels online shoppers picked for brand discovery:
- Search engines (30.6%)
- Ads on TV (30.2%)
- Word-of-mouth recommendations (27.4%)
- Ads on social media (26.6%)
- Brand and product websites (23.3%)
- This is how some of the most popular e-commerce tools rank in terms of the number of websites using them:
- WooCommerce - 6.1 million live websites
- Shopify - 4.1 million live e-commerce sites use this platform
- OpenCart - used by 335,00 live websites
- PrestaShop - 264,000 active stores
- Adobe Commerce - 148,000 live websites
- BigCommerce - 46,885 live websites
How GO-Globe Utilizes The AI Growth E-commerce AI to Enhance Its Strategies
As a prominent digital solutions company, GO-Globe employs AI to provide high-end e-Commerce services that are aligned with the concerns of the current business scenario. Using creative AI-based toolsets and strategies, GO-Globe facilitates its clients to unlock the fullness of their online potential, simplify processes, and deliver personal shopping experiences. Let's dig into how GO-Globe applies AI growth e-commerce to leverage e-commerce strategies that create relevant value for its clients.
Personalization and Customer Insights
AI has already made the biggest impact on the improvement of personalization, one of the most critical factors that keeps an online shopper interested. GO-Globe leverages AI algorithms to shift through incredible amounts of customer information and pattern it into behaviour, preference, and purchase history. Thus, it creates a tailor-made experience for the individual shopper who perceives it as uniquely fit for them. This tailor-made methodology increases customer satisfaction, enhances the conversion rate, and allows brands to communicate more powerfully with their customers.
Apart from all this, AI-based tools really have deep insights into the behaviour of the customer for GO-Globe to use such knowledge meaningfully for improving customer experience and eCommerce service success. By using such insight, the companies can filter the strategies to address the changing demands of customers. Business competitiveness, in the form of a data-driven approach, supports AI growth in e-commerce.
Optimizing Inventory and Supply Chain Management
Inventory management is one of the most complex and critical aspects of any e-commerce plan. GO-Globe applies AI-based solutions for monitoring and maintaining inventory levels, as well as predicting demand to optimize stock level allocations. This minimizes waste, prevents stockouts, and optimally manages supply chains. The ability to predict fluctuations in demand allows our clients to maintain at all times optimal stock levels across all of the platforms.
Moreover, AI enables real-time tracking and analysis. This means any potential bottlenecks in the supply chain can be easily pinpointed. These preventive measures reduce costs, shorten delivery times, and ultimately produce better customer service. Applying AI growth e-commerce principles helps GO-Globe to guide clients in optimizing their logistics and inventory systems, making operations more efficient while improving customer service.
Enhancing Product Recommendations and Customer Engagement
GO-Globe leverages AI recommendation engines operating according to the behaviour of individual users so that product suggestions can be personalized in response. Intelligent recommendations further purchases by driving users toward product lines that best align with their tastes and preferences. Our eCommerce services ensure brands better engage with customers, creating all-around more user-friendly experiences with correct recommendations and relevant content to interact with.
In addition, AI supports automatic customer-service solutions that integrate the functions of a chatbot and a virtual assistant. Customers are now offered immediate responses to every query and problem they may have. This technology enables companies to cater to customers by answering repeated questions and solving questions at any time, which is a factor leading to increased customer satisfaction. Through the integration of AI tools, GO-Globe supports growth in e-commerce based on AI ecommerce, which makes it easier for businesses to interact with customers and encourage them to come back.
Advanced Data Analytics and Decision-Making
Data is the foundation of successful e-commerce strategies, and GO-Globe’s AI-driven analytics empowers businesses to make data-backed decisions with greater accuracy. By applying machine learning algorithms to large datasets, GO-Globe identifies actionable insights, enabling clients to make informed choices on pricing, marketing, and product development. This data-centric approach helps companies respond swiftly to market trends and customer preferences, maximizing profitability.
Through AI analytics, businesses can identify which products are most popular, what marketing strategies yield the best results, and how to adjust pricing for optimal sales. GO-Globe’s eCommerce services enable companies to stay agile, improve their decision-making processes, and drive growth by capitalizing on data trends. With AI growth ecommerce in focus, GO-Globe assists clients in transforming data into a powerful business asset.
Conclusion
AI growth e-commerce has come a long way from its introduction in 1948-49 to transform the world in recent years. It has faced various ups and downs, from gaining huge prominence during the COVID-19 time to normalizing after the post-COVID era, and the yearly increments are not that significant compared to the 2 years of COVID-19. Its integration with Artificial Intelligence and Big Data has enabled unprecedented growth in the IT industry. Many more powerful technologies are yet to come in the next few years, further strengthening the online industry. Mobile integration and omnichannel commerce strategies will continue to increase as these tools and technologies shape the future for our generations to come.
