Offering a personalized and efficient experience is no longer an exclusive advantage of e-commerce giants. With the advancement and democratization of Artificial Intelligence tools, small and medium-sized retailers can now compete with major platforms, delivering smarter shopping journeys, increasing conversion, and fostering customer loyalty.
According to a McKinsey & Company study, companies that adopt AI-based personalization solutions observe, on average, a revenue increase of up to 40% from personalized actions. Additionally, 71% of consumers expect more personalized experiences from the brands they interact with, according to a Salesforce report. These numbers highlight a clear trend: understanding and anticipating consumer needs is now a decisive factor for staying competitive, especially in the digital environment.
If in the past investing in cutting-edge technology seemed like a privilege for big brands, today specialized startups have made access more democratic. An example is ShopNext.AI, a retail-focused platform that develops customized Generative Artificial Intelligence solutions for small and medium-sized e-commerce businesses. According to the company’s data, businesses that adopted its solutions saw, on average, a 25% increase in conversion rates and 30% higher customer retention.
“Artificial Intelligence is enabling small retailers to deliver highly personalized experiences, create tailored content, and better understand their consumers’ behavior. This was something that previously seemed distant from the reality of SMEs. Today, with the right tools, it’s possible to compete with large marketplaces in terms of experience and efficiency,” says Pedro Duarte, CEO of ShopNext.AI.
Market Trend
Studies indicate that AI will become even more strategic for small retailers in the coming years. According to Gartner, by 2027, around 70% of customer interactions in e-commerce will be mediated by AI technologies, including chatbots, virtual assistants, and personalization tools.
For example, among the most common AI applications for small and medium-sized retailers are customer service chatbots, automated product description generation, personalized recommendation systems, and predictive tools for inventory management and marketing campaigns. Automating these processes not only improves efficiency but also frees up time for entrepreneurs to focus on business growth.
Tips for Retailers
Expert Pedro Duarte has compiled practical tips for small retailers looking to start using AI in their daily operations:
- Start with the basics:first invest in simple tools like chatbots and virtual assistants for customer service, which already offer quick efficiency gains.
- Personalize your e-commerce:use AI to create personalized product recommendations and improve the customer experience at every stage of the shopping journey.
- Optimize your time:automate repetitive tasks, such as product description generation and inventory management, to focus more on strategy and growth.
- Use data to your advantage:implement solutions that help better understand consumer behavior and predict future demands.
- Test and adjust:start with smaller projects, measure results, and make constant adjustments to ensure the technology is genuinely adding value to your business.
