How AI Can Help You Create Greener Ecommerce
Updated December 12, 2024.
With the awareness of the capacities of AI rising, people are becoming more creative and curious about what this can mean for us. When it comes to the eCommerce world, solutions such as Vector Search and chat technology are already highlighting ways that AI can change the game. In parallel, the fight for greener eCommerce continues. The obvious answer to this is trying to combine the two: how can AI help us create greener eCommerce?
Sustainable Packaging
AI can be used to optimize the amount of packaging used in deliveries. Through using a combination of deep learning, natural language processing and computer vision, it is possible to optimize the amount of packaging required for each product.
AI can help your business understand which packaging is required for each product, with no excess waste and still ensuring the customer is satisfied with their experience. Amazon has used AI technology in their shipping strategy which has led to a reduction in the packaging per shipment. This is a great success in using AI to aid greener commerce.
Reducing Returns
One of the most environmentally damaging areas of the eCommerce industry is the amount of returns. AI can help reduce this by ensuring that shoppers know exactly what their products are before they purchase them.
Chat AI technology allows shoppers to have their questions answered immediately 24/7. When it comes to questions about products, shipping and delivery, AI chatbots are perfect for sorting out anything unclear.
Strategic Shipping
AI can also help shoppers to understand the most cost-effective method of shipping. AI algorithms can interpret shopping data, traffic patterns and delivery success rates to understand the most efficient routes. This reduces fuel consumption and carbon emissions. At the same time it pleases customers as it ensures timely delivery and streamlines their shopping process.
Inventory Management
Using a similar method, you can use AI predictive analytics to calculate the amount of stock that will be needed. By ensuring that you only order or produce the right amount of stock, you reduce excess waste and energy that goes into producing this. This is a success for the business, as you reduce any unnecessary costs or waste, and you also ensure that you are being as efficient as you can be.
Customer Retention
As the world moves towards green eCommerce, more shoppers are looking for this in their brands values. Younger shoppers, particularly Gen Z, prioritize shopping with brands that reflect their values.
Therefore, if you are not using greener practices, you might lose customers. Conversely, by using AI to promote greener commerce and your business, customers might stick around. There are lower costs and output by retaining customers rather than trying to find new ones.
Aside from your green commerce strategy, using AI in other areas of your website, for example vector search, smart merchandising and voice technology can all add to customer retention. Having a superior eCommerce experience enhanced by AI contributes to shoppers’ desire to stick around.
Overall it is clear that using AI to enhance your business sustainability will have positive effects overall. It will boost sales, improve customer retention, and contribute to greener eCommerce overall. Thinking outside of the box when it comes to AI is a great idea. These concepts could grow over time, as we know that AI will develop and sustainability will continue to be a key theme.