5 AI Solutions Commerce Companies Use Often
This article will be helpful for:
- Commerce platform operators managing thousands of products or more
- Business managers who want to boost efficiency by automating repetitive tasks
- Anyone looking to strengthen their commerce business's competitiveness by adopting AI
This article covers:
- How to automate repetitive tasks like product classification, search optimization, and image management using AI
- AI solutions that deliver customer-tailored shopping experiences, such as similar-product recommendations and search engines
- Concrete examples of the cost savings and operational efficiency gains commerce companies can expect when they adopt AI
Why commerce companies use AI
AI is bringing innovation to commerce. Many companies are now using AI to process the huge volumes of data handled on commerce platforms quickly and accurately. As a result, team members can focus on creative and productive work, raising overall efficiency.
In this article, we introduce 5 AI solutions that commerce companies use often.
5 AI Solutions Commerce Companies Use Often
Commerce AI Solution 1 — Product Category Tagging
Problem: Low-value-added manual work that needs automation
Classifying products into categories is essential in commerce. But commerce companies handle thousands or tens of thousands of products. That makes category classification highly complex and time-consuming.
What if sellers register products themselves? It gets even more complicated, because each seller may choose categories differently. In that case, consistency in category classification drops sharply. Left unchecked, inconsistent product categories worsen the customer experience.
As you can see, category classification is essential to the customer experience. But it isn't high-value-added work — it's low-value-added manual labor. From an efficiency standpoint, automation is needed.
Solution (AI): AI analyzes images and assigns categories automatically
AI analyzes product images and automatically assigns the right category. From essential categories to detailed subcategories, AI grasps a product's features and classifies it accurately. This dramatically reduces time and cost. There's no need for people to handle each item one by one. In practice, Dalpha's category tagging is being used effectively by commerce companies that handle large numbers of products. It's in use across all kinds of industries that need category classification — mart platforms, fabric-sourcing platforms, fashion wholesale/retail trading platforms, and more.
Take a look at reviews from customers who have used Dalpha's category tagging automation.
Impact: Replaces manual work, automates tasks, reduces labor costs
Lower labor costs through classification automation
Faster, more accurate category tagging
Greater search and product-management efficiency through a consistent classification system
Commerce AI Solution 2 — Similar-Product Recommendations
Problem: The difficulty of selecting similar products, which requires weighing many factors
Commerce companies want to show similar products to give customers a great purchasing experience. That's because when customers buy, they often compare other products with a similar style or color. If you can't easily surface the similar products customers want, purchases don't happen and the bounce rate can rise.
But setting the criteria for similar products among countless items isn't easy. With so many products, there are many factors to consider. Above all, every time products are refreshed each season, you have to keep reflecting those changes— and that kind of upkeep isn't easy either.
Solution (AI): AI recommends similar products based on product-to-product similarity
AI analyzes the design, color, and pattern of the product a customer is viewing, then recommends similar products — not only from the same brand but also from other brands and other categories. That's because AI's strength lies in analyzing similarity between items. AI can recommend similar products quite accurately while weighing multiple factors. This lets customers easily compare and choose from a variety of options. Another advantage is that it doesn't require periodic updates.
Impact: Replaces manual work, automates tasks, maximizes revenue
Higher purchase conversion rates through similar-product recommendations
Greater customer satisfaction by offering diverse product options
Maximized revenue through synergy with other brands
Commerce AI Solution 3 — Text Search
Problem: High cost to build a search engine, and difficult ongoing maintenance
How easily customers can find the products they want is a core element of the shopping experience. When search options are limited, customers struggle to find what they want and may leave. Search is, of course, a basic that should just work. Yet putting that basic in place isn't easy.
First, for a search engine to work well, search rules and product names need to be well organized. This process requires a lot of consideration and work. The bigger problem is the build cost. It can run into hundreds of millions of won.
And that's not all. After building the search engine, the maintenance problem remains. Updates for additional product information require management, and the build vendor handles maintenance as separate work or at extra cost. So the overall cost and maintenance burden is no small matter, and only a limited number of companies can adopt a search engine.
Solution (AI): An AI search engine at one-tenth the cost of building a conventional one
Text search powered by AI is highly efficient in terms of cost and maintenance. It delivers the basic performance you need for search while saving a great deal on cost.
AI analyzes product data, automatically extracts keywords, and supports various keyword combinations such as color, material, and features, so it has no trouble meeting basic search needs. It also supports sentence-style search. Like "clothes that suit summer well," customers can more intuitively find the products they want.
Dalpha's text search is paid as a monthly subscription — about one-tenth the cost of a conventional built search engine. Many fast-growing commerce and platform companies are adopting Dalpha's AI text search.
Take a look at reviews from customers who have used Dalpha's text search.
Impact: Cost savings, less maintenance work
Improved accuracy of search results
Outstanding performance for the price
Higher likelihood that customers quickly find what they want and proceed to purchase
Commerce AI Solution 4 — Image Search
Problem: The limits of text search for products where the image is the main element
Have you ever wanted to find a product you liked on social media or the internet, but didn't know how to search for it?
In categories where images are a key element of the product — like fashion, furniture, and interiors — text search can be difficult. That's because it's hard to put a product name or feature into words to describe what you're searching for.
And even if it does come to mind, you're likely to have a hard time getting the search results you want.
Solution (AI): AI provides image search based on similarity between images
AI recognizes similarity between images and can quickly find products similar to the image a consumer uploads. With this feature, customers can easily find the products they want using just an image, with no need to type a search term.
As mentioned earlier, it's frequently useful in image-centric industries like fashion, furniture, and interiors. Compared with offering text search alone, it exposes customers to more products and can raise the purchase conversion rate. It also has the advantage of delivering a more personalized shopping experience.
Impact: Higher purchase conversion rates, a more personalized shopping experience
Delivers an intuitive, image-based search experience
Shortens the search process for greater convenience
Delivers a more personalized shopping experience and raises purchase conversion rates
Commerce AI Solution 5 — Image Editing (background removal, image refinement, transforming/removing elements within an image)
Problem: The difficulty and hassle of editing product images that each come in different formats
When uploading products, have you ever had to edit each one by hand because the product images, information, and tone-and-manner all came in different formats?
Products handled by commerce companies come from a variety of brands. Product images in all sorts of different formats can give customers an inconsistent impression. This undermines consistency in the shopping experience and is very negative for customer experience.
So the more products you handle, the more managing this image inconsistency becomes a critical task. The problem, though, is the volume and the intensity of the work. Refining huge quantities of images one by one is tedious and not very high-value. It's an area that needs automation.
Solution (AI): AI edits images exactly the way you want
You can handle product image editing using AI. From simple background removal to detailed edits of image elements, AI can process them repeatedly. Partial edits are also possible exactly as you want. This lets you provide customers with a more unified UI.
Impact: Lower labor costs, automated tasks
Clean, consistent product images
Ensures consistency in your brand image
Reduces outsourcing and labor costs
Are you a commerce company weighing AI development?
So far, we've looked at 5 AI solutions commerce companies use often. Many commerce companies use AI solutions, but finding one that fits your company perfectly isn't easy. Since they're prebuilt solutions, you often have to put up with little inconveniences as you use them.
Dalpha provides custom AI that takes your company's situation and workflow into account. Many commerce and platform companies — KT Commerce, MyRealTrip, MUSTIT, Qmarket, and more — are using Dalpha's solutions. Over 150 enterprise customers are developing AI through Dalpha.
Are you a commerce company that wants to build AI tailored perfectly to your business?
Get a free consultation from Dalpha.
Our expert AI consultants will work with you to figure out the AI that fits your company perfectly?
Apply for a free AI consultation
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