Online retailers are using artificial intelligence in eCommerce industry to provide chatbot services, analyze customer feedback, and provide customized services to online shoppers. According to a 2019 Ubisend survey, one out of every five customers is willing to buy products or services from a chatbot. And 40% of online shoppers are searching for great deals and shopping through chatbots.
Brand up-selling and cross-selling on the Amazon E-commerce website is one of this retailer’s biggest success stories. This is accounting for an incredible 35 percent of its total sales. What technology is driving this conversion mode? Artificial intelligence (AI) is at the heart of Amazon’s product recommendation technology.
So, how is artificial intelligence (AI) in e-commerce affecting the shopping experience in 2019? Let us look at some of the most relevant applications of artificial intelligence in E-commerce. Also let us check some real-world industry examples, in this article.
We will be looking at some impactful ways in which Artificial Intelligence is shaping the eCommerce industry.
Digital Virtual Assistants like Chatbots
E-commerce retailers are increasingly using chatbots or digital assistants to provide 24×7 service to their online customers. The Chatbots are becoming more intuitive and allowing a better customer experience thanks to AI technologies in eCommerce.
These Chatbots are proving to be good at interacting with customers with the help of NLP, addressing their needs through deeper analysis, learning their customers remarkably over time, and by providing customized ad and product recommendations.
Personalized product reviews for online shoppers are one of the most popular uses of artificial intelligence in e-commerce, rising conversion rates by 91 percent and average order values by 3%. AI in E-commerce is influencing consumer decisions due to its awareness of past sales, searched items, and online browsing patterns, thanks to the use of big data.
Personalization is at the heart of AI in E-commerce marketing and it is one of the most powerful modes. AI and machine learning in E-commerce are deriving important user insights from the produced customer data based on unique data gathered from each online user.
Boomtrain, for example, is an AI-enabled platform that can analyze consumer data from various touch points (including mobile applications, email campaigns, and websites) to see how they communicate online. E-commerce retailers may use these data to make appropriate product recommendations and have a consistent user experience across all devices.
Maintaining the correct amount of inventory to meet consumer demand without adding to idle stock is the key to effective inventory management.
While traditional inventory management was limited to current stock levels, AI-assisted inventory management allows for the maintenance of stocks based on data related to previous years’ sales trends, supply related issues, and foreseen changes in product demands.
Aside from inventory management, AI is allowing warehouse management with the rise of autonomous robots. Experts are predicting it to be the future of artificial intelligence in eCommerce. Unlike human workers, AI robots can be used to store and retrieve stock 24 hours a day, seven days a week, as well as dispatch ordered goods immediately following an online order.
Improving Customer Experience
Digital Personal Assistants and Chatbots are becoming way too common these days. Some companies have thought out-of-the-box to improve the customer’s experience in their online stores. A house improvement shop, Lowe’s has launched the world’s first autonomous robot named LoweBot in 2014. That’s sole aim is to help the customers and improve their overall shopping experience. Use of Artificial Intelligence in improving customer experience is a great feat which is definitely going to implement by other companies as well very soon.
Customers are greeted at the entrance, directed around the store, and even assisted with inventory management by the tall shopping assistant. This allows Lowe’s store employees to engage in more positive experiences with customers by freeing up their time.
When shopping online, you can come across product results on the website that are not only irrelevant, but also international. Yeah, it is inconvenient. It is so irritating that you are likely to leave the tab.
This is where AI helps the eCommerce Industry. To address this issue, AI typically employs natural language processing (NLP) to contextualize and optimize search results. Furthermore, AI employs visual search capabilities that are more likely to fit the commodity. Making it easier for us to shop for the stuff we want and enjoy.
If you think AI means robots and machines can take over the world, I am sorry to break your heart, but that is not going to happen. Artificial intelligence (AI) makes use of technology and algorithms to inform retailers about what their customers are searching for. As the e-commerce industry grows and expands, automation will become a necessity for any company.
The role in the relevant sector continues to expand as well. This means that the robots will take over at this point and give the customer discounts, sales, or new prices.
Forecasting Sales Trends
Consider an alternate universe in which the marketing activities and expenditures are only visible when a prospective buyer is on the verge of making a purchase. The conversion rate will never fall below a certain level, and spending will only be made when the consumer is likely to make a purchase. If a consumer knows when a product will finish, it will give the consumer an idea of how much inventory they will need to restock. Thanks to powerful ML Algorithms which helps the eCommerce industry.
This is much more useful in the industry that sells concert tickets or provides people with transportation.
For online retailers and e-commerce brands, fake reviews have always been a major issue. According to a study conducted by Search Engine Land, 88% of consumers trust online feedback. They treat online feedback as much as a personal recommendation. However, over time, people can find fake reviews that have been released by rivals or other brands. To combat this, most e-commerce brands employ artificial intelligence to eliminate fake reviews. They need to provide consumers with genuine feedback on the product or company.
Days are gone when you check Yellow Pages, cold call clients, or show up on their doorsteps to sell product. The best Artificial Intelligence software companies are rapidly changing the face of eCommerce with superior technologies and marketing strategies.
By recruiting the best AI developers, eCommerce is revolutionizing the way businesses interact with their customers. They are providing faster access to information and using customer data to increase sales.