AI in Green e-commerce — 3 Things You Can Achieve with AI in 2020

Naume Guveya
4 min readOct 4, 2019

Green e-commerce is booming. Although good, this growth means more competition. Throw in some millennials and you have yourself some tough work.

Why millennials?

This generation not only makes up the largest segment of the current consumer base, but it’s also well-known for demanding only the best products and services.

Fortunately, as AI technology becomes more mainstream, it’s bringing with it many benefits that can give your e-commerce retail business a competitive edge in the tough retail industry. In fact, 400 retail executives think AI can save retailers up to $340 billion annually by 2022. More savings mean more resources to grow your brand and get it in front of the right people.

Your e-commerce business may be green, but at its core, it’s affected by the factors that affect other e-commerce businesses, green or not. So here are three things AI can help your business achieve in 2020, complete with some examples from Amazon, the biggest e-commerce retailer by revenue.

1. Personalization

The modern consumer wants personalized services.

82% of consumers are likely to shop at a retailer that provides personalized services. 52% will probably switch brands if a company doesn’t provide personalized communication. Mass message campaigns just don’t cut it anymore; you risk losing customer confidence and loyalty if your business ignores personalization.

A large part of Amazon’s success hinges on the power of personalization. The company started personalizing its offers as far back as 1999 with its one-click purchasing feature, which allowed customers to save their payment and shipping information for future purchases.

Today, Amazon is still a giant personalization machine. From using customer names to providing personalized product recommendations, it’s one huge personal affair.

Amazon is all about personalized offers

Top tip: Conduct some customer analysis to better understand your customers’ pain points and needs. This will help you create personalized products and services that increase sales, brand awareness, and customer loyalty.

2. Efficiency

Being in the retail industry means you get to handle lots of products and customers. A solid supply chain management (SCM) system is important.

Who can forget the time KFC (a brand that specializes in fried chicken) ran out of chicken.

Such a supply fiasco, especially from a big brand like KFC, shows just how important managing the supply chain is. But how do you do it efficiently when there’s just so much to do?

Amazon currently sells over 600 million products and it has over 75 fulfillment centers and 25 sortation centers across North America. Imagine how robust its SCM is.

Instead of sticking to traditional methods, Amazon is embracing AI for SCM. The company integrates big data analytics and AI algorithms to determine future demand for specific products up to 18 months in advance.

By using AI, Amazon achieves operational efficiencies that allow it to stay on top regardless of the number of products that need handling. With the right AI technology, your business can create an SCM system that saves time and money — two of the most important resources for your business.

Top tip: Communicate with your whole team to ensure your whole organization achieves more efficient operations through AI.

For instance, you are unlikely to achieve significant sales growth if your sales team neglects to work with the marketing and supply chain teams. Additionally, all three teams can’t work effectively without bringing in other functions like finance and HR.

3. Customer Satisfaction

Customer satisfaction has a significant bearing on business success since it affects customer retention and brand loyalty. Simply put, a business cannot survive without satisfied customers.

AI can play a big role in increasing customer satisfaction.

For example, since most people hate waiting in line, Amazon created AI-powered self-checkout stores. The brand has managed to increase customer satisfaction thanks to these convenient stores.

Amazon is also using other AI technologies to boost customer satisfaction.

  • 70% of millennials who have used chatbots have reported positive experiences. Amazon is using smart customer service chatbots which are especially useful for cutting down waiting times when customers have complaints or want information.
    After all who likes hearing Your call is important to us. Please hold, we’re currently experiencing a high call load.”
  • Half of all searches are forecast to be voice searches by 2020. There is also a rising trend in voice shopping and consumers expect businesses to use more voice recognition technology.
    Amazon is already ahead of the pack. Amazon Echo users are overwhelmingly satisfied with Alexa, Amazon’s voice assistant.

Top tip: Have conversations with your customers to better understand the services that would give them the most positive experiences and convenience.

Social media is a great place to engage in meaningful conversations with your audience. With the help of AI-powered social media listening and monitoring tools, you can get valuable insights into what your customers are talking about and what they need.

AI and the Future

The year is 2019 and AI is here to stay. It’s shaping the future of every industry and green e-commerce is no exception. Your business needs tailored AI technology solutions that will grow your business and give you an edge in the industry.



Naume Guveya

I use content marketing writing and content strategy to help sustainability-focused, tech and finance brands increase their leads and ROI.