E-commerce

AI creates profit gap among e-commerce founders, report finds

AI is creating divergence in outcomes across e-commerce businesses, with some founders reporting profitability gains, while others describe the technology as a waste of time without returns, according to a report from Ecommerce Equation.

The findings draw on data from more than 4000 founders included in the Ecommerce Founders Report 2026, based on insights from e-commerce businesses in Australia. Results show that founders who identify business constraints and apply AI to specific use cases report commercial results, while others increase activity without improving results.

“The ones getting results aren’t doing more with AI,” said Jay Wright, founder of Ecommerce Equation. “They’re using it in very specific parts of their business where they already understand the problem.”

Revenue and operations

The report identifies two areas where AI impact appears: Revenue and operations. These areas relate to profit margins and time allocation.

On revenue, AI supports conversion through rapid testing of creative and adjustments to messaging and targeting. One founder of a fashion brand in Australia increased daily revenue from $600 to $3000 after using AI to diagnose and address website conversion issues. The founder also avoided a projected development cost of $15,000.

In operations, businesses report changes in demand planning, inventory management, and workflow automation. Reducing manual tasks improved inventory accuracy and margin management. “The tool isn’t the advantage,” Wright said. “The advantage is knowing exactly where your business is stuck, and pointing AI at that.”

One example cited is Marissa, founder of The Lullaby Club. She faced a challenge when a bestselling product differed in fit from the rest of the collection, affecting conversion and returns. Instead of redesigning the website, she used AI to build a size recommendation tool based on size data and customer behaviour.

The solution was tested within a community of more than 40,000 users and reached 97 per cent accuracy. It increased conversion by 24 per cent within one week and reduced returns. The dataset was later used to develop a sell-through tracking tool to support forecasting and restocking decisions.

Risks in AI adoption

The report states that outcomes are linked to how AI is applied rather than access to tools. It notes that some founders focus on tools without defining a use case or identifying business constraints.

Examples cited include adopting new tools without a defined purpose, measuring activity rather than commercial outcomes, relying on AI-generated outputs without verification, and using generic creative that undermines brand identity.

“What’s changing is access,” Wright said. “Founders are now able to build and improve parts of their business themselves that previously required a team or external spend. That’s where the real shift is happening.”

The report also notes that AI-generated information can include errors if not reviewed. It states that founders who integrate AI into business processes, rather than treating it as a standalone tool, are building systems that support operations over time.

• This story was originally published on Inside Small Business.