AI Tools augment D2C earnings in India's E-Commerce landscape


18 September 2023, Mumbai

Artificial Intelligence (AI) is transforming the Indian e-commerce landscape, with Direct-to-Consumer (D2C) brands leveraging AI-driven solutions to augment their earnings, elevate customer experiences, and substantially augment their average transaction values.

Video Insights

Recommendation Engines: 

AI-driven recommendation engines scrutinize customer behavior and preferences to propose pertinent products or upsell opportunities. 

For instance, Flipkart harnesses recommendation engines to furnish personalized product suggestions, guided by a customer’s browsing and purchase history. 

Upon purchasing a smartphone, the recommendation engine can promptly propose compatible accessories such as phone cases, screen protectors, or headphones, thereby inflating the transaction value.

Chatbots and Virtual Assistants: 

AI-fueled chatbots offer real-time assistance to customers by answering queries, furnishing product insights, and steering them toward supplementary products or bundled offerings. 

For example, Myntra integrates chatbots on their digital platforms to guide customers in discovering the perfect attire and accessories. If a customer is on the hunt for a dress, the chatbot can intelligently suggest matching shoes, handbags, and jewelry, culminating in an increased overall expenditure.

Dynamic Pricing Algorithms: 

AI algorithms adeptly scrutinize market dynamics, competitor pricing strategies, and consumer behaviors to orchestrate dynamic price adjustments. Discounts and bundle deals are optimized in real-time to maximize revenue. 

For instance, food delivery platforms like Zomato and Swiggy harness dynamic pricing algorithms to offer discounts on orders placed during off-peak hours or bundle deals on multiple orders.

AI tools are exerting a profound influence on the Indian e-commerce market, enabling D2C brands to augment their earnings, elevate customer experiences, and stay ahead of the curve.


AI is transforming Indian e-commerce, with D2C brands leveraging AI to boost earnings, elevate customer experiences, and augment average transaction values through recommendation engines, chatbots, and dynamic pricing.

Additional insights:

  • AI is also being used by D2C brands to improve product development, supply chain management, and fraud detection.
  • As AI continues to evolve, we can expect to see even more innovative and transformative applications in the Indian e-commerce landscape.
  • D2C brands that embrace AI early on will be well-positioned to succeed in the rapidly changing e-commerce market. 

CREDITS: PRIYA LUTHRA l Entrepreneur report

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