Artificial Intelligence Transforming eCommerce
Artificial intelligence is a powerful technology tool that allows for multiple tasks to take place at once, faster, and more efficiently than humanly possible. It helps in monitoring and can reduce liability exposure
for businesses and organizations. It is a very trending topic in this competitive world, which is offering smart solutions to small and large firms. AI technology has helped eCommerce to reach greater heights.
While the global E-commerce sales are projected to touch $4.8 billion by the year 2021, the prediction has that around 80% of all customer interactions will be managed by AI
technologies (without any human agent) by the year 2020.
Why prefer artificial intelligence?
A lot of things have changed due to this COVID’19 pandemic. As society is coping up with this, AI-enabled technology solutions will help lead to a better future. In eCommerce, brands have invested in the power of AI,
whether its pricing strategies, product promotion or customer satisfaction no shortage of applications are there. AI helps in adding a personal touch to the way consumers buy the products, it is convenient, flexible,
and consistent across multiple platforms.
“AI is forecasted to be worth $27 billion in retail alone by 2025.”
The integration of AI in eCommerce has increased the marketing standards for many companies. It is transforming business models of many brands and enterprises and generated technological advancements. A personalized
experience by identifying consumer behaviour is the best thing so far for the customers.
Let’s depict some of the ways AI has dominated the world of eCommerce :
• In lead generation
The main motive is ultimately the generation of sales. And this extracts the data and keeps a check on the purchasing pattern of the shopper. AI has lowered the burden and dealt with the time consuming aspect. This has largely assisted the online stores
to generate lead and increase their sales exceptionally well.
• Visual search engines
Search engines are designed to carry out web searches in a systematic way. They allow the user to search with a single click and this visual representation of the product has proved to be appealing. Shopper knows about the different aspects of the product
like size, colour, design before buying it. Which in turn helps in enhancing customer experience.
• Chatbots and voice assistance
It provides real time voice assistance to the user, making the interaction easier. You must know the popular concepts of Siri, Alexa. eCommerce businesses are also focusing on adding virtual assistance. It can be in the native language and can be easily
understood. AI uses the algorithm which extracts data from the customers according to their pattern. Chatbots are also providing 24x7 support which helps in the betterment of customer support as well as addressing
consumer needs through deeper insights, providing personalized offers to them.
“40% of consumers use chatbots to look for offers and deals.”
• Inventory management
It means, maintaining the right amount of inventory that can fulfil market demand without adding to idle stock. AI enabled inventory management is based on :
1. Sales trend over the previous year
2. Potential supply related issues
3. Anticipated changes in product demand
Automated robots are the future of artificial intelligence in eCommerce, which can store/retrieve stocks. It is considered to be the most innovative solution and is impacting hugely.
• Intelligent recommendation
“Personalized product recommendations for online shoppers are increasing conversion rate by 915% and average order values by 3%.”
The benefits of product recommendation include:
1. Improved customer retention sales
2. Enable personalized shopping experience to shoppers
3. Activate business email campaign
high number of returning customers
Search engine and other media platform display the ads of the related product which the consumer is interested in and it is tracked by AI in eCommerce. It helps in improving the reviews and ratings. Amazon
prime uses viewers, view history to recommend different movies and series.
• eCommerce marketing
Marketing is the core element of any business, as without it your product won’t reach the target audience. AI provides a cost effective way to assist in marketing. Businesses can offer their marketing campaigns and plan to AI platforms which further provides
solutions to various social platforms like Google, Facebook, Instagram, and more. AI helps in minimizing the Cost Per Click and define the most feasible marketing budget.
• Low cost services
AI provides quite affordable services which make the daily processes automatic and improves the shopping experience. Which can be utilized by any online store even if they are tight on their budget. One such service provided by AI is chatbots, as discussed
above it acts as a medium between the shopper and the service provider which helps in resolving queries. It has also reduced the cost of hiring officials and a customer centric approach is developed by using chatbots.
• Filter fake reviews
“According to Dimensional Research’s 90% of respondents said that positive online reviews influence their buying decisions. Also, 86% said that their buying decisions were influenced by negative online reviews.”
Fake reviews or paid fake reviews have become an issue for online shops. AI can manage this problem by putting more emphasis on verified and helpful reviews. It also takes into account those reviews
that are marked as helpful by other users. Amazon uses AI to combat fake product reviews and inflation of its popular star ratings.
Artificial intelligence is the stepping stone for eCommerce which will take it to heights. It has completely transformed the eCommerce industry by keeping a check on the consumer buying pattern which consists
of what they buy and when they buy.
For example :
If a customer frequently buys any particular product every month then the retailer can give him a personalised offer for that product, and can even use machine learning enabled recommendations
of other products that can be used with the previous one.
“Google invested £400 million acquiring DeepMind, an Artificial Intelligence company.”
In conclusion, I want to say that Artificial Intelligence is changing the way we buy and sell online. And as highlighted in this article, AI in eCommerce is playing a leading role to drive innovation
and customer experience.
“According to a report by Business Insider, by 2020, 85% of the consumer interaction will be done without the involvement of humans.”
As an online retailer, to cope up with the current competition and to stay ahead in the business, you should definitely implement a working model of Artificial Intelligence. Act quickly!