Artificial Intelligence is the most advanced technology through which human lives have become facile. Chatbots in eCommerce sites have greatly impacted user experience in positive ways and have improved overall productivity. Amazon has started using AI in their product recommendation system through which they clinch a positive impact on their revenue growth.
In this article, we will see how AI is transforming the eCommerce industry and what are the most important use cases which you can utilize for your eCommerce business transformation through Artificial Intelligence.
How AI can impact eCommerce experiences?
Between 2020 to 2027 the retail market will see a compound annual growth of 34% which is huge growth for the retail industry.
One of the main issues that eCommerce businesses face is low customer retention. There are lots of things that customers expect but when they don’t get that, they start looking for somewhere else.
By using an intelligent recommendations system you can solve the above hitch which will significantly retain more customers & will result in revenue growth.
Furthermore, we will know in detail what are the most important use cases of an AI in the eCommerce industry which have great potential to drive business growth.
AI Use Cases in eCommerce
AI-enabled digital assistants such as Google’s duplex can create the grocery list and place online shopping orders for them. AI has the ability to predict the shopping patterns of any shoppers based on their past activity.
Let’s see what are major use cases of artificial intelligence in the eCommerce industry.
Chatbots based virtual assistants
eCommerce sites have integrated the AI-based chatbot through which millions of customers’ hits are deciphered seamlessly in an instant. If your e-commerce website has not integrated with a chatbot, you may lose a lot of customers and may also impact the user experience.
To provide 24×7 support for your customers it is obligatory to have chatbots that can assist with your end consumer.
Let’s see some benefits of chatbots:
- Ability to provide targeted & personalized offers to customers
- Chatbots have self-learning ability which improves over time
- With the help of NLP, chatbots can do voice-based interaction with customers
- Can address customers need with huge insights
You can use AI-based retargeting solutions for both online and offline e-commerce businesses. In an offline store when customers enter into a store you can use video analytics to retarget the customer based on their past purchase pattern.
For an online eCommerce site, you can use custom-built AI solutions that can examine all customer’s purchase history and can easily retarget them which will increase the engagement rate with less expense.
Let’s see some benefits of retargeting the customers:
- Higher engagement rate
- More chance of conversion
- With AI tools you can target a specific customer
- You can offer special discounts based on their past purchase history
AI-based Product Recommendation System
An intelligent recommendation system uses the foregoing purchase history of the customers like what products are added in the cart, most viewed product, most searched product, etc. to recommend the best-suited product for customers.
Many studies show that online shopping sites have increased their conversion rate by 90% by using the AI recommendation system in their e-commerce site.
A recommendation system benefits consumers in great ways as they can get the best product recommendations that could be what they are searching for.
AI systems can detect fake & real product reviews and can give notifications about those reviews which may lead to negative or positive brand impressions for your product.
You need to get the proper sentiment of consumers from their reviews and artificial intelligence algorithms can give you great insights about sentiments through which you can improve your overall product quality based on customers’ sentiments.
To predict the best optimal price for your products you will need an intelligent AI algorithm that can analyze massive amounts of data & suggests the best pricing option.
Price optimization techniques can lead to more conversion rates for particular products. Amazon uses price optimization capability to fine-tune its pricing strategy.
Before AI, price optimization was not easy, but nowadays, business owners are implementing these algorithms to increase revenue growth.
Demand forecasting is one of the best forecasting models through which eCommerce businesses can predict the future demand of particular products with great accuracy & precision.
If you want to maintain a correct stock level of particular products then you will need historical data & a perfect algorithm to predict products’ future sales and how they may fluctuate. AI algorithms have the capability to predict the next 2 years’ future demand for particular products.
Although without an intelligence algorithm it is not easy to create a demand forecast system. AI algorithms have great capabilities to predict the demand for particular products which can be leveraged by all types of businesses.
Many businesses entail these types of AI solutions that can anticipate the customer’s expectations and get an edge over your competitors.
It entails providing a customized experience to your customers when they visit your website and this is where AI comes to make this process easy for you.
If customers feel more valued & more connected when they land on your website, it becomes easier for them to make purchase decisions & yes! you should not ignore this powerful opportunity.
AI algorithms are designed in this way that they can deliver targeted offers to your customers based on their browsing behavior & which leads to direct revenue growth.
Nowadays there are so many eCommerce businesses that have integrated these types of AI solutions into their site which increases website personalization for the exceptional user experience.
How to bring AI into your eCommerce business
I hope after reading this valuable article about how AI is transforming the eCommerce Industry you would realize the power of AI algorithms for transforming eCommerce businesses a step ahead of the competition.
AI systems are already helping millions of customers to visualize products, creating a greater user experience & recommending the best match products for them.
Don’t be too late to transform your eCommerce business through AI as your competitors may start using AI solutions before you do. We ensure to build a world-class AI solution that can drive massive business growth with just small investments.
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