How Does E-Commerce Platforms Use Artificial Intelligence?
E-commerce is a constantly expanding and growing industry that manages to surprise everyone every year. According to statistics, 70% of e-commerce decision-makers believe artificial intelligence would help them customize client buying experiences in their online retail stores.
The e-commerce platform that effectively implements AI will have a significant competitive advantage. In e-commerce, artificial intelligence transforms how customers shop and are treated. Artificial intelligence is present at every touchpoint, aiding customers and collecting data for the company. When seen in increased corporate competition, artificial intelligence‘s potential has made it a need rather than a choice.
Let’s take a closer look at how artificial intelligence changes the way people shop online.
What’s New In Ecommerce AI?
Artificial intelligence is primarily used as a prediction-based programme that serves customers based on their previous interactions and purchases on an e-commerce platform. This is mostly what AI in e-commerce accomplishes the following:
- To maximize sales, cross-sell and up-sell by fine-tuning the ideas over time
- presenting highly relevant information to the purchasers.
For example, if you are accustomed to purchasing a specific brand of shoes from an online retail store that uses AI, you will most likely begin receiving notifications about deals and offers on that brand soon; you may also start receiving recommendations about related products that complement those shoes in the future.
Virtual Assistants And Chatbots
While early chatbots were only designed to provide automated responses if a human assistant was unavailable, today’s chatbots can engage in a full-fledged discussion with customers. Artificial intelligence-powered chatbots can connect with clients and deliver significant outcomes — they can complete a task without the need for human participation.
In the bottom right corner of your laptop screen, there is always a chat bubble that asks, “How may I help you today?”. This chatbot can assist you with your buying adventure on the website you are on.
While similar to a chatbot in concept, a virtual assistant is a little more powerful than the prior AI programme. In contrast to a chatbot, a virtual assistant may support you during your whole relationship with a brand, whereas a chatbot can only answer generic enquiries and requests.
The use of Artificial intelligence tools to power e-commerce has gotten a lot of favourable feedback from customers, with 21% of them agreeing that chatbots are the easiest method to contact a company. Consumers want a quick response, which a chatbot or virtual assistant can provide.
E-commerce can construct distinct databases for each returning customer, weaving together a customized purchasing experience for them by combining the force of promptness with the keen, retentive memory of AI.
Customer retention can be improved by tailoring intelligent recommendations to them – Only by mapping loyal customers’ shopping patterns and piecing together some relevant products that the customer is highly likely to be interested in can this be accomplished. This significantly reduces the customer’s sales cycle time.
Using the previous example of buying shoes, Artificial intelligence can recognize the style of the shoe and offer matching socks – invisible socks if you bought ballerinas, ankle socks if you bought trainers, long socks if you bought cleats, and so on. AI is now intelligent enough to make product recommendations depending on your purchasing history and the time of year you are shopping (summer, winter, monsoon, etc.)
AI improves its function via machine learning with each iteration, rejection, and successful sale. Better recommendations keep clients longer since nothing appeals to a customer more than discovering what they need in the shortest amount of time.
In online retail, AI is affecting more than just consumers. Artificial intelligence, digital transformation and software-as-a-service help in
inventory management from a static to a highly dynamic state.
Intelligent software can chart the shopping flow throughout the year, highlighting periods when more stocking is required or when warehouses are idle. This makes getting new products and getting rid of old stock easier. It also aids in logistics planning by considering the number of sales received, warehouse availability, and closeness to the destination. This is accomplished by AI using the following methods:
You are analyzing sales trends throughout the company’s existence. This will assist you in replenishing your inventory. If you give an AI retail solution access to older data, it could make better sales estimates.
Forecasting fluctuations in demand for a variety of products. Such knowledge helps avoid overstocking and dealing with unused items. For example, during Diwali, sales of lights and fragrant, decorative candles increase significantly, whereas sales are lower at other times of the year.
We are identifying and resolving supply chain concerns. Inventory is reliant on an e-commerce store’s supply chain, and AI aids in the creation of an effective management system that maintains list dynamics and is up to date with the newest trends by diagnosing faults in the chain.
Let’s have a look at some fascinating AI in e-commerce cases.
Instances Of AI In E-Commerce That Astounded The Audience
The ability to eliminate fake reviews is one of the most striking aspects of deploying AI in e-commerce. Shoppers tend to believe wholeheartedly in human recommendations and reviews left by other customers on retail websites – some of these can be fraudulent reviews that harm a brand’s reputation for no reason.
Online merchants are employing artificial intelligence to eliminate negative comments and ratings on their product listings by favouring comments and reviews from verified consumers and sellers. This is where AI shines. It also eliminates phoney positive remarks that hurt the seller’s reputation in the long run.
A seamless cross-channel purchasing experience helped by AI is another outstanding example. A high degree of customer engagement can be achieved by seamlessly integrating a customer’s experience across numerous channels while maintaining all information about his history with the brand. Any brand will benefit directly as a result of this. “Omnichannel commerce” is today’s technical jargon for this. This not only ensures that the customer does not leave your brand’s real estate, but it also ensures loyalty and retention if done correctly.
Artificial intelligence is proving to be a crucial addition to e-commerce procedures. Its ability to handle things in the front and backend demonstrates its utility. AI revolutionises e-commerce, from customer service to inventory management, logistics planning, and product recommendations. It simplifies and smoothes out the industry’s creases and is doing it quickly.