How AI can help small retailers compete with e-commerce giants

Offering a personalized and efficient experience is no longer an exclusive differential of the e-commerce giants. With the advancement and democratization of Artificial Intelligence tools, small and medium retailers can already compete with large platforms, delivering smarter buying journeys, increasing conversion and customer loyalty. 

According to a survey by McKinsey & Company, companies adopting AI-based personalization solutions see an average increase of up to 40% in revenue from personalized actions.In addition, 71% of consumers expect more personalized experiences from the brands they interact with, according to a Salesforce report.This data shows a clear movement: understanding and anticipating consumer needs is today a decisive factor for those who want to remain competitive, especially in the digital environment. 

If, in the past, investing in cutting-edge technology seemed the privilege of large brands, today specialized startups have made access more democratic.An example is ShopNext.AI, a retail-oriented platform that develops customized Generative Artificial Intelligence solutions for small and medium-sized e-commerce. According to company data, businesses that have adopted their solutions have registered, on average, an increase of 25% in conversion rates and 30% more customer retention. 

“A Artificial Intelligence is allowing small retailers to deliver highly personalized experiences, create tailored content and better understand the behavior of their consumers. This was something that previously seemed distant from the reality of SMEs. Today, with the right tools, it is possible to compete with large marketplaces in terms of experience and efficiency”, says Pedro Duarte, CEO of ShopNext.AI. 

Market Trend 

Studies show that AI will be even more strategic for small retailers in the coming years. According to Gartner, by 2027, about 70% of customer interactions in e-commerce will be mediated by AI technologies, including chatbots, virtual assistants and personalization tools. 

An example of this is that among the most common applications of AI for small and medium retailers are customer service chatbots, automatic generation of product descriptions, personalized recommendation systems and predictive tools for inventory management and marketing campaigns.The automation of these processes allows not only efficiency gains, but also more time for entrepreneurs to focus on business growth. 

Tips for retailers 

Expert Pedro Duarte has gathered practical tips for small retailers who want to start using AI on a daily basis: 

• Start with the basics: invest first in simple tools like chatbots and virtual assistants for customer service, which already offer quick gains in efficiency. 
• Customize your e-commerce: use AI to create personalized product recommendations and improve the customer experience at every step of the buying journey. 
• Optimize your time: automate repetitive tasks, such as generating product descriptions and managing inventory, to focus more on strategy and growth. 
• Use data in your favor: implement solutions that help you better understand consumer behavior and predict future demands. 
• Test and adjustment: start with smaller projects, measure results, and make constant adjustments to ensure that technology is, in fact, driving value for your business.