Large Language Models in E-Commerce: Advantages for Retailers

11 min.

Article Overview

Large Language Models are frequently discussed as AI solutions in e-commerce. The integration of these applications into Digital Operations Platforms contributes significantly to an improved customer journey and optimized processes. By customizing the shopping experience with AI models, e-commerce companies strengthen customer loyalty, increase sales and boost their revenue. 
In this article, we explore the specific use cases of large language models in omnichannel retail, and explain the benefits of AI language models when combined with a Digital Operations Platform such as Actindo Core1.

Improved Omnichannel Results with Leading Language Models

f.hubspotusercontent40.nethub6495341hubfsGrafiken ProduktseitenOmni Channel OrchestrationActindo_OmnichannelThe transformative power of big language models is often discussed in e-commerce, and the first implementations are already underway.

Models like ChatGPT and Llama 2 are transforming the way businesses engage with customers on multiple channels. These advanced AI models generate human-like text and provide personalized product descriptions, real-time customer support, and automated content.

Companies that integrate these technologies into their ERP for E-Commerce or Digital Operations Platform (DOP) create consistently engaging and tailored customer experiences. This applies to online stores, brick-and-mortar retail, and marketplaces such as Amazon, eBay, and others.

>> Learn more about the Digital Operations Platform in our detailed guide <<

The Benefits of LLM Integration for Omnichannel Retail

Let's look at the positive impact that voice models like ChatGPT can have on omnichannel:

  • Product information through ChatGPT: ChatGPT automatically creates detailed and engaging product descriptions based on the attributes and specifications of the product. This maintains quality and consistency across all product displays. 
  • Channel-specific product descriptions (e.g. Amazon vs. own online store): Depending on the sales channel, there are different requirements and expectations of the target audience. ChatGPT adapts product descriptions to the specific requirements of each channel and optimizes texts according to length, tone of voice and keywords. 
  • Customer support: ChatGPT can be used as the first point of contact for customer service, answering frequently-asked questions, guiding users in troubleshooting and providing immediate answers. This has a positive impact on customer satisfaction. Learn more about the benefits of AI-based customer service in our exclusive interview with Carolin Schwarz of GREYHOUND Software.
  • Customer emails: ChatGPT composes personalized emails to customers for various topics, such as promotions, newsletters or updates, and ensures that the content is engaging and relevant. 
  • Post-purchase order confirmation and upselling: After a purchase, ChatGPT creates a confirmation email that not only confirms the order details, but also suggests related products or services to encourage further purchases. 
  • Summarized customer complaints: ChatGPT analyzes customer complaints and creates concise summaries that highlight key issues and opinions. This helps businesses address concerns more effectively. 
  • Summarized customer reviews: ChatGPT evaluates multiple customer reviews and provides summary feedback about the product. In doing so, it highlights positive and negative reviews to support product improvement. 
  • Optimized search queries: ChatGPT helps to optimize search queries in an online store. This helps customers find what they are looking for quickly and efficiently.
  • Content for blogs or articles: On e-commerce platforms with blogs or other content, ChatGPT helps in writing articles. These can provide insights on products, industry trends or how-to guides. 
  • Create FAQs: ChatGPT creates a comprehensive FAQ section based on common customer questions and product details, reducing the need for customer service interventions. 
  • Personalized product recommendations: ChatGPT analyzes customer behavior and preferences to create personalized product recommendations. This improves the shopping experience and increases sales. 
  • Collecting feedback: ChatGPT engages with customers to collect post-purchase feedback. This makes the feedback process interactive and engaging. 
  • Vulnerable orders: Kavida and similar AI tools analyze which orders may be at risk, such as missing important documents or other discrepancies.  
  • Translation and localization: ChatGPT translates and adapts product descriptions and other content for multilingual e-commerce platforms.

By integrating ChatGPT and other major language models into their e-commerce platforms, companies are improving the experience for their customers, increasing the efficiency of their operations, and driving revenue growth. To get an idea of what's possible, check out our guide to the top omnichannel examples in e-commerce.

Challenges in LLM integration

To realize the full potential of large language models, the following steps are required:

  • Consolidate data streams: Companies often work with data scattered across multiple platforms, from CRM systems to eCommerce platforms. Consolidating this data is critical for accurate and contextual AI responses.  
  • Back-end operations integration: LLMs must be seamlessly integrated with back-end operations. This includes inventory management, order fulfillment, and customer management to ensure real-time data access and direct AI-driven actions.  
  • Customization and fine-tuning: LLMs, while powerful, need to be tailored to specific business requirements. This includes customizing prompts, fine-tuning based on proprietary data, and ensuring AI aligns with brand tone and goals.

LLM Integration into the Actindo Core1

Actindo_Zeitgemaesse-Unified-Commerce-Experience_360-Grad_ETL-op-s-newAs a pioneer of best-of-breed technologies, we at Actindo recognize the potential of powerful LLM models for e-commerce. Our Actindo Core1 Digital Operations Platform is designed to quickly and easily integrate modern AI applications such as Large Language Models.

Integration can include the following functions:

  • Unified DataHub: By leveraging our central DataHub, we ensure that all your business data, from product details to customer interactions, is consolidated in one place. This provides LLMs with a comprehensive data set that enables accurate and contextual responses.  
  • Automated data transformation: Our built-in ETL (extract, transform, load) capabilities ensure that data from multiple sources is aggregated, standardized, and transformed so that it is usable by LLMs.  
  • Flexible back-end integration: Actindo Core1 enables seamless integration with back-end applications. Whether it's updating product listings based on LLM-generated descriptions or automating customer support responses, our solution ensures smooth operations.

  • Expert guidance & customization: Our team of experts will guide you through the process of setup and customization for your LLMs.

By taking a holistic approach, we ensure that retailers and brands create unparalleled customer experiences, increase operational efficiency, and stay one step ahead of the digital competition.  

Schedule a no-obligation consultation with our experts now to learn more.

“We have a clear vision of how enterprise software should be: Companies should be able to grow, scale, and transform dynamically without restrictions - based on a modern and future-proof platform." - Boris Krstic, CEO of Actindo

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