A few years ago, I ordered an expensive espresso machine from a small online shop. However, after just one week, the device broke down. I was annoyed – not just because of the defective product. No, I was disappointed that this shop apparently offered and sold me just any machine, without considering what I was really looking for. Wouldn't it have been fantastic if the shop had suggested exactly the model that fits my coffee habits before the purchase? Or even better: Inform me in advance that the product might be susceptible to defects under certain usage and that an alternative might be more recommendable?
This little mishap was just a personal annoyance. But worldwide, wrong recommendations, long delivery times, and inflexible services in e-commerce lead to great losses – both for customers and traders. This is where artificial intelligence (AI) comes into play: it is revolutionizing online commerce by analyzing data, making forecasts, and addressing customers more precisely than was previously possible. AI is now much more than a tech term you stumble upon in every second headline. When used correctly, it can provide online shops and e-commerce companies with a clear competitive advantage.
In the following, I will present five specific AI applications that can already be used in practice today.

Customer data is worth gold – if used correctly. AI systems can analyze enormous amounts of data in real-time while examining the surfing and purchasing behavior of individual users. Based on this information, AI can propose products it expects to meet the customer's needs precisely. An example: Someone who recently bought sports shoes receives recommendations for suitable sportswear, training accessories, or health apps, provided the necessary privacy approvals are in place.

Price adjustments also become more effective with AI: Artificial intelligence registers trends, competitor prices, and past purchases and continuously adjusts prices – depending on demand, time of day, or buyer behavior. This allows optimizing margins without scaring off customers with rigid and often uncompetitive fixed prices.

Practice Tip: To avoid arousing suspicion, e-commerce operators should make their prices as transparent as possible. Customers want to understand if and why a price changes.

Anyone who has ever been stuck in a hotline loop knows how frustrating poor customer support can be. AI-supported chatbots and voice assistants today are far more than just 'response robots'. They use machine learning to understand complex customer concerns and provide individual assistance. Simple questions – for example, about delivery times or return deadlines – can be clarified around the clock. More complex topics are forwarded by the chatbot to human employees. But even that can increasingly be answered directly by AI systems.

Practice Tip: The more strongly chatbots are linked with CRM systems and product assortments, the higher their added value for the customer. This way, a bot can independently check with customer inquiries whether certain goods are in stock and when a shipment is realistic, or simply provide more detailed product information.

A common problem in everyday online shop operations: Too little (or too much) stock on hand. Or a delivery is delayed because a bottleneck arose in the supply chain. AI applications can combine vast amounts of data from inventory management and supplier analyses and thus make much more precise predictions about when certain products are particularly in demand or when delivery delays are likely. Especially in seasonal business areas like fashion or electronics, this is a real competitive advantage.

Practice Tip: Companies should monitor their supply chains in near-real-time and intervene as early as possible when a disruption occurs. An AI can recognize warning signals and initiate appropriate measures – such as inquiring with alternative suppliers or redirecting production orders.

Many e-commerce providers send newsletters using a scattergun approach: Every customer receives the same message. This leads to declining open rates and increasing unsubscribes. AI-supported marketing automation can instead address individual customer groups with tailored messages. If someone recently showed interest in organic foods, the system sends targeted offers in this area. However, if someone frequently buys tech gadgets, they receive recommendations for new smartphones or smart home devices.

Practice Tip: To reduce spam risk and customer frustration, the shipping time should be chosen so that the messages reach the customers at the right moment – for example, when he usually checks his email inbox or refills his shopping cart.

Especially with large catalogs with many product variants, maintaining product images is a real time consumer. AI systems can recognize, categorize, and tag images with appropriate keywords. This eliminates the need for manual tagging and input of image material. It saves personnel resources and minimizes errors. Anyone who has had to put thousands of products online knows how valuable such a function is. We have already developed specific solutions in this area – saving a lot of tedious working time for our customers.

Practice Tip: Automatic image recognition not only speeds up data maintenance. Customers can also be inspired when they can browse for similar products via image search – for example, for a sofa in the same color and design.

Creating appealing and relevant content is essential in e-commerce but often time-consuming. This is where AI comes in to accelerate and optimize the creative process. AI tools can write product descriptions that are not only informative but also compelling or generate blog articles and social media posts that are tailored to the interests of the target group. But visual AI content like product images, promotional graphics, or explanatory videos are no longer an impossibility either.

Practice Tip: Use AI-generated content as a starting point and refine it with human creativity. This ensures that your content remains authentic and unique while benefiting from the efficiency of AI.

Artificial intelligence can significantly shape the online shop of the future – from dynamic price adjustments to pinpoint customer targeting. It is not an abstract buzzword but a tool that can be used at almost every stage of the e-commerce value chain. Those who want to thrive in today's competitive environment should boldly move forward and actively use AI. This not only increases customer satisfaction but also the revenue and efficiency of one's own company. And who knows – AI might even save someone from buying a defective espresso machine.