#646: AI in e-commerce with Oren Inditzky, Wix

We are here at eTail Palm Springs and seeing and hearing the latest and greatest in e-commerce and retail.

Starting an online store is easier than it used to be, but aren’t there still a ton of things you need to know, plus all the coding and API integrations you need to do?

Today we’re going to talk about AI in e-commerce and how low-code and no-code platforms are democratizing retail so it’s easier than ever to run and scale online businesses.

To help me discuss this topic, I’d like to welcome Oren Inditzky, VP and GM of Online Stores at Wix.

About Oren Inditzky

Oren Inditzky is the VP and GM of Online Stores at Wix. He is responsible for Product Management, Engineering, UX, Design, Data and Operations for Wix ecommerce website builder, powering more than 700K online stores worldwide.

Prior to Wix Oren worked as Head of Product at Expedia and a Director of Product Management at Dell, leading cross-functional global teams, responsible for mass-market mobile apps, e-Commerce and SaaS.

Resources

eTail Palm Springs: https://etailwest.wbresearch.com/

Wix: https://www.wix.com

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Connect with Greg on LinkedIn: https://www.linkedin.com/in/gregkihlstrom

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Transcript

Note: This was AI-generated and only lightly edited

Greg Kihlstrom:
We are here at eTail Palm Springs and seeing and hearing the latest and greatest in e-commerce and retail. Starting an online store is easier than it used to be, but aren’t there still a ton of things you need to know, plus all the coding and API integrations you need to do? Today we’re going to talk about AI and e-commerce and how low-code and no-code platforms are democratizing retail so it’s easier than ever to run and scale online businesses. To help me discuss this topic, I’d like to welcome Oren Iditsky, VP and GM of Online Stores at Wix. Oren, welcome to the show.

Oren Inditzky: Thank you very much, Greg. It’s really great to be here. Thanks for having me. And it’s great to be in sunny Palm Springs and be surrounded by all these great minds of e-commerce.

Greg Kihlstrom: Yeah, yeah, I love it. I know it’s always, it’s a totally different energy when doing these on-site, in-person at events and some great stuff already today. So before we dive in, why don’t we start by you giving a little background on yourself and your role at Wix.

Oren Inditzky: Sure. So today I lead the online store business at Wix. So basically we empower merchants or basically anyone around the world to build, manage, and grow their online store. Today, we empower more than 700,000 stores and dozens of thousands are joining every month. Prior to Wix, I was head of product for one of the brands of Expedia. I led software product management for Dell and started to learn the fundamentals of e-commerce and product management as an intern in Amazon.

Greg Kihlstrom: Wow, nice, nice. All right, so yeah, you’re the right person to talk with about this stuff. So let’s start by talking about, you know, certainly we talk about AI a lot on this show, but not a lot about AI in e-commerce specifically. So we want to talk about that. And, you know, again, there’s certainly a lot of talk about AI, but We’re here at eTail, and lots of talk about e-commerce. What are some of the areas where AI is currently playing a strong role in this area?

Oren Inditzky: So I think already today, AI is playing a tremendous role in e-commerce. So within the past year, we’ve seen tremendous advancements in this field. And I think when we talk about it today, I mostly like to break it down to two major types of AI. So I think the first one is obviously the queen of headlines, Gen AI, which basically allows anyone to create e-commerce related original content within a few clicks. So we’ll talk more about this and about tools that I already see today that are being used and can really help merchant online. And the other one, our advanced algorithm within machine learning that helps people continuously optimize their store and do amazing things in terms of optimization, conversion. average order value and just making their store way better automatically. So we can talk about this. Now, in terms of generative AI, so let’s say if you just start a business, okay, AI today already at Wix allows you to choose the best name for your business. Depends on your geo, market, target customers that you have. Then it can also help you find the right domain name that is available and is most suitable for your target market and even generate a logo for you. So these things used to be a lot of friction for people that wanted to start a business and today with a few clicks on the Wix platform you can do it. Then you go to design a website. So if you want to do it really easily, AI can actually do that for you in advance. Then you can continue from there and adjust it. And we see a lot of new merchants are doing a really great job in utilizing AI to generate the site. But then you dive deep into creating that online store. So in terms of written content, it’s really great. So we have a capability that allows you to create product descriptions. But those are really aimed for conversion, aimed for SEO. So you basically give a few words, scan the image, and then it generates the product description for you. And then we have the same capability basically for any other text on the website, whether it’s homepage, frequently asked questions, basically any topic. It knows your audience, knows the context, knows your site, and generates the best content that you can have for your website. That’s for written content. Now, if you go to SEO, super important because in the past eight years, the customer acquisition costs went up by more than 200%. An SEO is a field for experts, a field for professionals. It takes a lot of time, a lot of money, but today we have an automatic AI wizard, just scans your site, provides your recommendation, how to change your content, change your titles, your descriptions, so you really aim to go up higher in the search results. And then in terms of imagery, so it used to be long, expensive, exhausting production days. Today, even the small ones can easily generate imagery that looks really, really professional for their homepages, and even generate pack shots. So we see merchants coming in, taking photos of their products with their phone. With a few clicks, they’re getting a really professional pack shot, and that’s amazing. So these are the major thing that we see with Generative AI. They’re really changing the way and removing a lot of friction from creating your online store. Then the other thing with the machine learning, so it basically takes information from buyer’s interaction on the site, it analyzes it, then it can adjust things on your website, get again feedback from the real world, and then continue optimizing basically and end this loop. So a few things that we’ve seen work really well. is first of all, for example, showing the right products in the right order for the right user at the right time. When I worked at Expedia, I had a whole team that was responsible for sending you the right order for the hotel in your search results. And it really determines everything. The entire benefit of those platforms are laying in creating the right order for you. So we have today a tool that we created with and integration of a third party, the ways that we democratize this and provide this to anyone to show the right products in the right order. Then the other things that we see, so you probably know from the well-known big brands, related products, frequently bought with, frequently watched with. So today, anyone that can create a website can simply drag that in to your website. It learns your website, knows what to recommend with what, and AI does it for you. Another great thing that we see happening, so already today, We have an agent that is 24-7 available. What you can do is basically give it all the information about your website. It scans your website, and then you can upload PDFs and manual about anything about your product. So very quickly, it knows about your product way more than you know, and then it basically acts as a proactive sales agent on your website, helping customers, guiding them through the purchase, and you can even guide it, hey, when you want to hand it over to you. Another great field that we see happening that also, you know, the big guys were using, it’s being democratized these days by AI, is dynamic pricing. So we invested and we’re collaborating with a startup that allows, again, smaller merchants, small businesses to adjust their pricing to generate the most conversion and increase profits. So that’s a great field. And another thing that I see coming in terms of startups that are pitching to us is everything around inventory management. It used to be a lot of art and science, how you manage that. And it can make or break your business. And now AI can play a really big role in this.

Greg Kihlstrom: So that was a lot, just in a good way. But just to go back to some of the beginning of what you were saying, some of those things where, let’s say you’re a smaller company. We’ll get to maybe some of the larger, what the larger companies would do as well. But you’re a small retailer. You have a great idea. there’s been traditionally all these things kind of prohibitive to starting a business. And you just mentioned a name, a logo, a domain, basically a customer service team, all of these things. It’s pretty amazing what can be done to democratize this this ability when, again, anyone who’s ever set up an e-commerce store and probably forgot five of those things that you mentioned and then had to figure out how to do it and all that, and now to be able to do this in, I would imagine, a few clicks, but still pretty easily, that’s a pretty phenomenal change in the way that things are done.

Oren Inditzky: And this is within just the past year. I think it was a big revolution. And we can see how it removed a lot of friction, increased the conversion. And the speed, we see it every day with the thousands that are joining our platform every day, the speed in which their stores are up and running just tremendously increased it. Yeah.

Greg Kihlstrom: So how does… Let’s maybe start with if there’s a small, medium, and larger company there, is there a difference in how they should think about how AI helps them in their e-commerce?

Oren Inditzky: I think the way to think about it is not to give yourself a score by how well, how often, and how much you integrate AI, but just stick to your business goals. The business problems stay the same. We just got a great new gift, a tool that can do the work for you more efficiently. So the way I think about it, just figure out your goal. If your goal right now, if your problem is like, how do you increase traffic? And you now use AI, we didn’t even talk about it, to create your social posts, to manage email marketing. So you generate your goal for what you hope to accomplish. You keep the same KPI that you used to do, whether it’s traffic or conversion and balance rate, and you just use AI and you see how it works. It’s the same way for us at Wix. When we started to introduce AI to website creation, You know, we started small, and we see that they’re actually doing really, really well, in many cases, better than the traditional templates that we have. And now we funnel most of our traffic towards AI site creation. Same thing for fulfillment. If you have inventory management, price management issues, and you use AI instead of using it manually, you still define your problem, define your goal of what you hope to accomplish, and the same KPI that you measure. and you put AI to the test, and if it can help you, it can help. So I would say you just stick to your business problems and the things you want to accomplish, and you use AI as a new tool. And if you probably didn’t think about AI, search it, Google it. There’s probably a tool that can help you, and go ahead and give it a try.

Greg Kihlstrom: So I want to talk a little bit about, I know a lot of the things you mentioned are, if not all, are part of Wix. I want to talk about Wix e-commerce and just kind of where it fits. Do you mind just talking a little bit about where does it kind of fit in the market? Sure, definitely.

Oren Inditzky: I think everyone knows Wix as the leading website creation, and Wix e-commerce is basically a very robust e-commerce platform that allows anyone, either a do-it-yourself, self-creator, first-time merchant, all the way to an enterprise, to create an online store, design it, manage it, meaning sourcing products, managing orders, inventory, pricing, everything you need, all the way to growing it. So features like back-in-stock, pre-order, built-in marketing features, or any integration that you can think about. So we provide that. We allow you to sell through various channels, whether It’s your own branded online store. We allow you to sync your products with a few clicks to marketplaces to expand your reach, whether it’s Amazon, Wish, eBay, Instagram, for example, and also a point of sale. Yeah, and that’s basically the platform that we have. Now, in terms of our positioning within the market, I think what really differentiates us is anything that’s related to ease of use, efficiency, versatility, and cost effectiveness. Because we grew up as a web creation platform, so we have unmatched no-code design capabilities. So the ability for you to change your site, design your site without any code quickly and efficiently, it’s something that we have and we all built around it. No one has the same capabilities. The other thing that we have, even though we have a very robust and open platform with APIs and hundreds of different apps and third-party integrations, I would say the way I look at it with my team, if this is essential for broad reach of our customer, we either have this capability natively or we’re going to build it. So that pretty much means that it’s ready for business out of the get-go. You get all the essential capabilities from loyalty to subscriptions, to pre-order inventory management, and you can always expand and make it flexible with third-party integrations. And last but not least, given that Wix is not only an online store e-commerce platform, we have also Wix restaurants and Wix donations and Wix events and Wix services, you can really expand your business beyond retail. And we’ve seen snowboard sellers having tuning sessions. And we’ve seen merchants doing events or collecting donations to give impact for the community. So you can really grow beyond the traditional retail with just a bunch of clicks, you enable a whole new business vertical. So these are our differentiators.

Greg Kihlstrom: And to kind of go back to some of the AI things that you were mentioning, you had mentioned some of the analytics and like measuring average order value and all those things like that. So I would imagine then the AI capabilities are pretty seamlessly connected with the e-commerce, is that?

Oren Inditzky: Yeah, definitely. It’s built into the system. For example, if you go out there, let’s say you want to add the new product to your store. So you have the ability to insert the text for your product description, or almost next to any feature in our system, You would see the nice AI stars where you click on it and you can generate that with AI. Same thing with the product photo. Same thing with generating Google ads, Facebook ads, email marketing. So we have AI integrated almost into every step of the platform. And this year we’re going to have even a bigger impact. We definitely see all the teams within weeks. stopping their effort, trying to make sure that every significant action that could be done on our platform could be done via AI as well. And then basically there’s an AI agent that’s kind of there for you. You can talk to it and it would not only do the work for you, but it would also recommend you what you should do at every step of the way to be more successful.

Greg Kihlstrom: Yeah, yeah. Do you want to talk a little bit about checkout and what’s coming there or what’s already here and what’s coming there?

Oren Inditzky: Yeah. I think what I’ve seen throughout my years in e-commerce, I remember the days where all the efforts, all the companies, all the startups were focusing on bringing traffic, so marketing solutions. Then once this was exhausted, and obviously there’s always innovation there, you’ve seen deeper in the funnel, people are working on whatever you can do to increase conversion, average order value. And then I remember that when you talked about in product management, when I was in other companies, hey, no one actually looked at checkout. It was just this generic field with the least amount of traffic, and you just purchase. But after we’ve done all the work of really optimizing the entire funnel, I see a whole new frontier happening with innovation in checkout. And what’s happening today, I think, several things. All the major platforms within the last few years made the checkout more open. And that means that you can integrate apps and third-party solutions. And you can look here, right here at ETL, how many solutions are here related to checkout or post-checkout services. You haven’t seen those things a few years ago. That’s the first thing. The other thing that you see is the ability to do no-code customizations of checkout as well. This is happening too. The other thing that we see happening these days is using AI to personalize checkout and offer personalized offers, such as promotions and so on, specifically for you based on your profile at checkout. And these are things that we haven’t seen before.

Greg Kihlstrom: Yeah, nice, nice. So related to checkout then, and really e-commerce in general, what’s on your radar? What should customers be expecting in the months ahead? Where’s the focus?

Oren Inditzky: So I think several things that we’re working on is, as we spoke about, bringing really AI into every aspect of the workflow to make things more efficient, both in terms of creating the store, managing and growing your business. We’re going to see it, I think, all across the board. I think in terms of checkout, you’ll see more and more new capabilities coming, such as personalized offers within the checkout, even greater amount of flexibility in you being able to change it, customize it, offer new things, and more and more applications and third-party providers that are offering great new things in terms of cross-sell, up-sell, and post-sell services. So I think these are the different areas that I see, even within the next few months, that you’re going to see more and more within e-commerce.

Greg Kihlstrom: Great, great. Well, Oren, thanks so much for joining today. One last question for you. I like to ask everybody, what do you do to stay agile in your role and how do you find a way to do it consistently?

Oren Inditzky: It’s a great question. I think that as part of the Wix mentality and DNA is As much as we like to sit together, plan our strategy for the year, what we’re focused on, we’ll always listen to our customers and what they’re asking us. We see the market trends and we look at the data. And we have no issue at all to turn our strategy 180 degrees when we see a new opportunity. So we do that too. Also, as a company based in Tel Aviv, we have what we call the Israeli chutzpah, which is the ability to challenge the status quo, to debate. Even as much as we’d like to stay focused and have a plan for the year, it’s in our DNA to constantly look at what’s happening in the market, where the opportunities are, what customers are asking, and really maneuver the ship accordingly.

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