The Top 13 Ways Artificial Intelligence is Transforming eCommerce
Artificial Intelligence is Transforming eCommerce. Here are the top 13 ways AI is changing the way we shop, buy and sell goods online
With billions of dollars in venture capital being invested into AI technologies, and advancements in machine learning happening on a near daily basis, it’s clear that artificial intelligence isn’t just the stuff of science fiction anymore. It’s here, now, and ready to improve our lives, from managing our workday to shopping online.
Artificial intelligence (AI) is changing the world in ways we never imagined possible, and eCommerce is one of the most important arenas in which AI has been taking advantage of new technologies to enhance our experience online.
Whether you’re running an online store or simply a consumer who likes to shop online, there are ten different ways that AI can impact the way you shop today. From retail to healthcare, from entertainment to finance, this top 13 list will help you understand how artificial intelligence has already transformed ecommerce and how it will continue to do so in the years ahead.
What are the benefits of having an eCommerce website?
Ecommerce websites provide access to an infinite amount of products, shipping options, and various payment options. ECommerce has been around for a while but is still evolving as people use it differently. The top ten benefits of having an eCommerce website are:
- Customizable shopping experience
- Extensive product selection
- Huge savings opportunities
- Shopping convenience
- Ability to buy from anywhere in the world
- Fast delivery timeframes
- 24/7 online availability & Shipping deals that can't be missed!
- No need to fight crowds or deal with traffic and parking fees.
- Personalized product recommendations based on what you like and how you shop.
How Is AI Transforming the Ecommerce Industry?
Forecasting and analytics
Artificial Intelligence can transform eCommerce by Forecasting and analytics. AI's ability to recognize patterns and make forecasts is critical for eCommerce. The complex algorithms used by retailers allow them to anticipate what shoppers want and need, which enables better decision making when it comes to inventory management. AI also has the potential to boost customer service by identifying a customer's intent in a chat conversation, as well as learning from past interactions with customers and predicting their needs in the future. Here are benefits of forecasting in ecommerce:
- Real-time prediction
- Avoiding out-of-stock items
- Inventory planning
- Improving customer experience
Fraud detection
Artificial Intelligence (AI) can be used for fraud detection in eCommerce transactions by identifying fraudulent transactions. AI can be trained to detect patterns of behavior that indicate a transaction might be fraudulent, and it can use machine learning to adapt to new data as it becomes available. This technology has the potential to help eCommerce stores reduce fraud while helping customers feel safer when they shop online.
One of the most important ways AI can transform eCommerce is by preventing fraud. AI may be able to identify fraudulent transactions before they happen and stop them before they cost your business money. Fraud detection software employs a wide range of techniques including machine learning, pattern recognition, and artificial neural networks.
These programs are capable of recognizing subtle deviations from normal purchasing behavior and flagging those records for further review. For example, some will look at the sequence of purchases made by an individual account holder to determine if there are any obvious anomalies that would suggest criminal activity.
Other programs track metrics like IP address, email address, or cookie ID to verify that a person actually submitted their own information on their own behalf during a transaction rather than using someone else's account. These are just some examples of how fraud detection works; each program uses different techniques so it's important to speak with experts who know what sort of problems you're experiencing before deciding which system is best for you.
Warehouse and inventory management
Artificial Intelligence can transform eCommerce by Warehouse and inventory management. Intelligent inventory management systems can predict when products will run out and automatically order more stock to reduce downtime, which reduces costs and increases customer satisfaction.
AI-powered voice search on devices like Google Home or Amazon Echo provides an easier way for consumers to find products they need.
Robotic warehouse workers that don't require breaks can manage operations 24/7, reducing labor costs.
A 3D model of a retail store allows retailers to use AI to analyze traffic patterns, ultimately improving customer experience by predicting where customers are likely to be at any given time of day in the store.
Big data analytics
Artificial Intelligence can transform eCommerce by collecting data from all channels, big data analytics and machine learning to predict customer needs and increase conversions. So what does this mean for the future of retail?
AI will allow retailers to get more personalized content in front of customers as well as offer the best deals for each individual shopper. With artificial intelligence algorithms at the helm, businesses will be able to present their customers with a personalized web page that knows what they like and offer them only products or services that they’re likely to buy - no more irrelevant offers!
A truly intelligent retailer will also be able to use this information about shoppers in order to tailor promotions accordingly. The best example of this so far has been Amazon Prime Day - every year, Amazon uses its trove of data on past purchases and preferences in order to offer its users up-to-date discounts on popular items with just one click away.
Personalization and recommendations
Artificial Intelligence can transform eCommerce by personalization and recommendations. As we move more and more of our lives online, the power of technology to change our experience is only going to increase. A lot of this change will happen through personalized recommendations. In order to keep pace with these changes, it's important for merchants to start thinking about how they can use AI to their advantage.
Chatbots and voice search
Artificial Intelligence can transform eCommerce by Chatbots and voice search. Chatbots can be used to help customers find the products they are looking for, but it can also be used to answer customer questions and handle complaints. Voice search, on the other hand, allows consumers to use their voice instead of typing in what they're looking for. This helps them find what they want quicker and easier than before.
The chatbot company, Slackbot Inc., has helped users by making shopping more convenient through their product Quick Buy. There's no need to go through a checkout process if you just want to make a purchase from the retailer you've been chatting with or searching for.
Another advantage of using artificial intelligence is that users don't have to worry about forgetting anything because all information from one session will be stored until they decide to delete it themselves or when another session is opened up with that particular merchant again. Shopping online has become so popular that some retailers like Amazon offer two-day shipping without needing any Prime membership or paying extra fees.
Visual and voice search
Artificial Intelligence can transform eCommerce by Visual and voice search. This is one of the many ways AI can be leveraged to improve the customer experience. One of the most popular ways businesses are using AI to improve their customer experience is through visual and voice search.
By incorporating this in-store, a business can display products that customers have been searching for and see what people are looking at in a store without them physically having to walk up to a product and search for it on an app or website. The use of AI in eCommerce also offers benefits such as being able to offer reviews and recommendations based on previous purchases, notifying customers when items they want go on sale or out of stock, and so much more!
Robots in physical stores
Artificial Intelligence (AI) can transform eCommerce by Robots in physical stores. These robots can be used for tasks such as customer service, inventory management and even store greeter. One of the most popular examples of this is the Amazon Go store in Seattle.
The Amazon Go store uses sensors and AI to track items that are taken from shelves, then sends a bill to the customer's account automatically once they leave the store. This means that customers no longer need to stop at a cash register or scan their items themselves before exiting - they simply walk out and go on with their day!
Chatbots and customer support
Artificial Intelligence can transform eCommerce by Chatbots and customer support. Chatbots are already being used by eCommerce companies, and they're becoming more intelligent every day. AI's ability to understand natural language, combined with machine learning means chatbots will be able to answer customers' questions and offer suggestions for products that may suit their needs.
Chatbots can also be used in customer support roles to answer FAQs or provide instant messaging service for quick queries. Plus, since chatbots don't need sleep or breaks, the cost of customer support can be decreased significantly.
Virtual assistants
Artificial Intelligence can transform eCommerce by Virtual assistants. The use of AI-powered Virtual Assistants have the potential to allow shoppers to interact with a virtual version of their favorite retailer, both on and offline. They can provide information about products and services, give recommendations based on a shopper's preferences, and even answer questions about company policies. Here are two types of virtual assistants:
- Chatbots. These chatbots are automated customer service representatives that can answer a wide range of questions and handle basic tasks, like tracking an order or making a return. Chatbots can be a great solution for retailers with smaller customer service teams, or if they want to offer 24/7 service to customers in different time zones.
- Recommendation Engines. Recommendation engines provide personalized product recommendations based on past purchases, browsing history, and website visits. This technology gets smarter as it continues to analyze data from the user's shopping behaviors and make more accurate suggestions over time.
Here are some benefits of virtual assistants:
- increased satisfaction for customers;
- increased customer retention rates;
- increased conversion rates for retailers;
- reduced overhead costs for retailers;
- increases in productivity for retailers.
Automated product tagging
Artificial Intelligence can transform eCommerce by Automated product tagging. AI can take the human error out of tagging products, making it easier to find what you're looking for. In addition, as AI gets smarter it will be able to better understand consumers and develop more personalized marketing strategies that offer the right product at the right time. Even more impressive, some AI programs have been able to predict how well new products will do before they are even released!
Dynamic pricing
Artificial Intelligence (AI) has the potential to transform eCommerce by leveraging Dynamic Pricing, which determines prices on a customer-specific basis. For example, if a customer has been browsing for an expensive dress but then starts to browse for running shoes, AI can automatically adjust the price of the dress in order to encourage them to buy it. When Dynamic Pricing is combined with other AI technologies such as chatbots and personalization, retailers can offer highly personalized shopping experiences that are tailored to individual preferences and needs.
AI Copywriting
Artificial Intelligence (AI) can transform eCommerce by AI Copywriting. It's been shown that AI copywriters outperform human copywriters in terms of persuasive writing. Moreover, AI can generate articles and blog posts based on keywords and topics that are popular in the industry. Finally, AI is also a good tool for customer service as it can answer many questions faster than any human could.
Here are some benefits of AI Copywriting:
- Utilizing artificial intelligence to generate content frees up your team to focus on other areas of the business where they can be more productive.
- Robots do not need coffee breaks or vacations; they work 24/7 without complaint. They don't require health insurance, compensation, or bonuses either!
- Bots don't get bored or frustrated with repetitive tasks; they're programmed to enjoy performing simple things over and over again. In addition, you won't have to worry about them becoming disgruntled or burning out from long hours like humans often do. Bots never go rogue!
Conclusion
While there are still many unanswered questions about the future of AI, and many challenges to overcome before true artificial intelligence can be achieved, this technology has already demonstrated its value in the ecommerce space.
By utilizing it to increase efficiencies, engage customers, and provide personalized shopping experiences for their customers, many companies have seen success with AI. As we move forward into the age of machine learning and beyond, it will be important that businesses continue developing their own AI strategies by hiring ecommerce developers in India while working together with other organizations that are also pursuing this field.