E-commerce is growing gigantic. It is more than $2 trillion worldwide. It is providing us with the comfort of shopping online while resting at home or the workplace. With the introduction of AI and its wise usage in the e-commerce sector, there is a huge opportunity to take the sector to new heights.
Artificial Intelligence (AI) or Machine learning enables computers or machines to mimic the abilities of a human mind such as perception, learning, problem-solving, decision making, and more.
In our article, we discuss how AI and Machine Learning are affecting the e-commerce business.
How AI and Machine Learning are going to affect the future of e-Commerce?
AI helps in targeting and retargeting the right customers
“Fish where the fish are!” This is what targeting in the Marketing perspective is all about. In the olden days, the targeting ways were traditional, but today, companies need to look for different ways to target their customers. We all know where we are spending our lead-time nowadays. Internet, Social Media & Apps, and mobile. From information search to shopping, everything is happening online.
Brands need to get inside our mobiles and PCs to make themselves visible to us and make their marks. Artificial Intelligence helps them to do so.
Did you ever observe finding the suggestions in the form of advertising in social media or online, which were the products/services you previously searched? You might have had that experience. That’s because the targeted advertising is possible through AI. Focused targeting reduces the advertising costs and efforts to a greater extent. At the same time, there is a higher possibility to convert the prospect into a sale.
Not just targeting the potential customers, AI also helps in retargeting the customers. If a customer searches for a product and leaves without purchasing it, AI enables the display of those products at various customer touch points in advertisements. There is a high probability of converting him into a sale.
Better shopping experience for customers
AI helps the customers enjoy a seamless, easier, convenient, personalized and quick shopping experience. Customers can easily find their required products. Get personalized suggestions and feed. Overall, it enables the merchants in providing an overall better than ever shopping experience to their customers. Merchants need to learn and adapt to working with bots and automated software alongside them.
Super-personalized product recommendations
AI has the ability to crunch customer behaviour online. Using various algorithms, it makes accurate predictions of the products the customers like. Then, it gives recommendations that customers are more likely to act and purchase Companies like Amazon already do this. They use customers’ browsing and purchase history to recommend products that you like.
These tailored recommendations took a huge leap forward when e-Commerce retailers were recommending the same “bestsellers” for everyone. This has increased the conversion rate.
This AI enabled service improves the store’s recommendations and suggests product display based on customer browsing history. “frequently bought together”, “related to items you’ve viewed” features are the outputs of AI too. Merchants also personalize the user experience by displaying those items related to past browsing and purchases.
Helps you in estimating right!
Prediction or estimation of the future business based on various parameters is important for a business. If it is an online business, it needs to rely more on technology to get better results and stay ahead of the competition flock.
Better inventory management
Business always runs like a seesaw. Two annoying aspects pertaining to inventory, understock and overstock. Understock misses out on the sales and customers, whereas overstock blocks a part of your investment. So, merchants always try to maintain optimum stocks. If the SKUs are more, it becomes difficult to estimate and manage the optimum inventory.
AI forecasts future demands in better and precise ways. Thanks to advanced programming, it allows you to manage your supply chain more efficiently.
Facilitates smart searches
AI and machine learning in online stores help the customers like assistants in physical stores to find the right products. They do that by understanding the long search terms given by customers, understanding their intent, and boosting the search by providing the right products.
Not just that, AI tailors the suggestions to the customers, understanding their purchase patterns based on their historical purchases, searches, demographic, geographic, and more parameters.
The voice search option you find in the e-commerce sites is also an application of AI.
Better Customer Service
Ever had a chat with customer service personnel at online stores? You might have done it, and you also might have had it with a robot. Yes, that’s true. AI-enabled Chatbots are the latest customer service providers.
These bots help the customers by addressing their queries and complaints 24/7 in online chat, understanding their issue, and finding a suitable solution. Chatbots are the most accessible form of AI. Merchants customize these chatbots in accordance with their company’s policies and values and maintain a clean slate with the customers.
Also read about: How to Utilize AI For Your Next Project: 3 Tips
