2 days ago
Cross-Border Commerce: AI, Automation And Personalization
Dhari AlAbdulhadi: Innovator and technology leader driving global e-commerce excellence as the Founder and CTO of Ubuy, based in Kuwait.
E-commerce is a huge global market, predicted to grow from $5.13 trillion in 2022 to $8.09 trillion by 2028. As this market grows, so does the number of consumers who buy products from online stores based in other countries. Studies have revealed that 52% of shoppers based in the U.S. and U.K. have engaged in cross-border transactions.
E-commerce companies have been early adopters of technology like AI, automation and personalization. The strategic adoption of this tech can help e-commerce companies in areas like logistics, sales, marketing and UX, improving customer experience while streamlining operations.
AI In An E-Commerce Context
AI has several uses for e-commerce businesses. Below are a few key examples.
As a cross-border e-commerce company, AI translations can make the company's website more accessible to people around the world, helping consumers find clear, accurate information.
Companies can also use this technology to help identify and prevent fraudulent transactions or activity. Online payment fraud has been predicted to reach $362 billion globally between 2023 and 2028, according to Juniper Research. AI can be used for dynamic pricing as well, adjusting the prices of products in real time based on numerous relevant factors, including the customer's region and sales trends.
Lastly, AI can help predict shopping trends and give companies an idea of when different global markets are most likely to purchase different products.
One way that automation can play an important role is in streamlining warehouse operations, shipping and logistics. This can include providing tracking tools to give consumers oversight or optimizing delivery by automatically selecting the best-suited courier.
Automation tools can identify and fill out the correct customs forms, ensuring import and export regulation compliance. This can help international consumers receive their order faster, as well as help companies avoid customs fines and penalties.
Automated processes can also help manage returns, saving time for staff and ensuring customers have nothing to worry about if they need to make a return. Additionally, e-commerce businesses can streamline their customer service by providing chatbots that can answer simple questions as a first line of instant, 24/7 support (although customers should be able to reach your customer service team as well).
E-commerce businesses can use AI to provide highly personalized product recommendations based on factors including location, previous purchases and browsing history.
Personalization tools can also be used to improve a website from a UX perspective. Beyond translation, these companies can offer international customers a localized experience, offering relevant messages and promotions.
This personalization extends to making sure that a range of payment options are available. Research from my company found that in many countries around the world, there are several digital wallets competing for popularity among customers, with some countries having as many as eight different popular providers.
Challenges To Consider When Implementing AI
E-commerce companies planning to adopt AI and automation should approach the process with both caution and strategy. The first priority is compliance—particularly around data security and cybersecurity—to safeguard both customers and the business.
Because introducing new tools can be time-consuming, it's also wise to begin with an audit of existing systems. This helps identify where AI and automation can be integrated into current workflows with minimal disruption. Rollouts should be gradual, focusing on a few clear goals at the outset before scaling further.
Staff readiness is another key consideration. Employees may need initial training and ongoing upskilling to effectively use these tools. Regular refresher sessions can help ensure teams stay fully up to date with any new developments.
Finally, tool selection is critical. If developing tools in-house isn't an option, leaders should research providers carefully—evaluating not only how well a solution integrates with existing software but also the level of customer support offered. Choosing the right partner can be as important as choosing the right technology.
Conclusion
E-commerce companies that embrace these technologies might find that it helps them transform the way their business operates, securing loyal customers and saving them both time and money. However, AI should always be introduced into a business carefully.
When AI is being used for personalization or localization purposes, this should always be done sensitively, maintaining a human touch. Businesses that try to integrate new tools without a proper road map for the rollout might find that this results in costly inefficiencies or confused staff who are not using the technology correctly.
But when introduced judiciously, AI has distinct advantages for e-commerce businesses: saving time by streamlining processes and analyzing data quickly, and helping them build relationships with customers at scale. Cross-border e-commerce business leaders should stay curious about how they can use technology to improve their global reach.
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