With its growing popularity across all avenues, AI has become the focus of industries all across the globe, so there’s no surprise that Artificial Intelligence (AI) in e-commerce for business has welcomed it with open arms.
Amazon is a case in point with a huge percentage of its revenue coming in from its product upselling and cross-selling. But what’s driving its product recommendation technology?
The answer to that is artificial intelligence; which has been able to enable the technology to reach heights like never before.
In other situations, artificial intelligence is being utilized by online retailers to include chatbot services, analyzing customer comments, to provide personalized services.
Statistics show how 1 in every 5 customers is more inclined to buy services from a chatbot. The figures give more weightage to the argument that artificial intelligence is the choice for both customers and retailers.
How is AI Transforming The E-commerce industry?
By predicting shopping patterns based on best-selling products, and curating ad-content for customers, AI can create a customer experience like none other.
For example, if a customer uses a particular website to buy a product every week. AI can study their patterns and schedule advertisements/offers for them based on the products they are likely to buy regularly.
AI Applications In E-commerce
Artificial Intelligence (AI) in e-commerce for business has numerous examples. Let’s look at a few AI applications for e-commerce that are being included in the industry.
Chatbots And Virtual Assistants
The unique point about online shopping is the accessibility i.e. customers can shop in the middle of the night, in hours outside the regular working hours of businesses.
But what is one thing all shoppers need while deciding what to buy? – support from the staff.
This support is available through the inclusion of chatbots or digital assistants that are available 24/7 to answer customer queries or provide suggestions for products that they’re searching for.
Not only are these bots built using AI technology, but they are also making steady advancements to enable a better-structured customer experience.
AI can provide a personalized shopping experience to all customers with the usage of natural language processing (which helps interpret voice-based interactions), and the inclusion of deeper insights. This coupled with its ability to learn on its own, AI can improve and innovate.
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Product Recommendations
Through the inclusion of AI, e-commerce industries have been able to drive a conversion rate increase of 915% and increase average order values by 3%. This is all because of personalized product recommendations.
With its ability to learn about consumption patterns, and repository of previous purchases, searches, and online browsing habits; AI can provide customers with exactly what they’re looking for and create an experience that suits their individual needs.
Data Insights
By gathering data from many touchpoints such as mobile applications, email campaigns, and websites, AI can understand how customers perform online interactions. This all contributes to making suitable product recommendations and provides a consistent user experience amongst all their devices.
So, if you like buying rice, for instance, AI will ensure that all your mediums can provide you details about rice and expose you to offers/products that compliment your buy patterns.
Inventory Management
AI-enabled inventory management allows the maintenance of stocks. They are based on a wide array of data, projected changes in product demands, and potential supply-related issues. Thus, covering all aspects that regular inventory management struggled to keep up with.
Moreover, AI has also been able to create a warehouse management system. This is done through the inclusion of automated robots used to store or retrieve stocks on a constant 24/7 basis. This assures that AI needs no sleep!
19 Powerful Ways To Use Artificial Intelligence In eCommerce
Future Of E-commerce
AI has taken over almost all industries. Artificial Intelligence (AI) in e-commerce for business is becoming a vital part of shopping & its aspects are creating unique experiences.
The experience of selling and buying things online has changed over the past few years and there’s no stopping!
