Artificial intelligence, at its basic, involves a specific branch of computer science that focuses on replicating human thoughts and movements in machines.
We have heard about the incorporation of AI in different industry verticals, which has proven immensely beneficial in various respects. The same goes for AI in eCommerce industry too.
For Recognising and Exploring AI Opportunities, Global AI Summit 2022 has been Organised In Saudi Arabia. (source)
The possibilities and benefits of artificial intelligence are innumerable. Different machines based on artificial intelligence are available that help pack products and ship them off to customers.
The eCommerce giant Amazon is a prime example of this. Amazon makes use of a wide array of AI-based machines for packaging and labelling, along with human workers.
There are several benefits of incorporating AI in eCommerce world. Therefore, it would be ideal to incorporate the same and enjoy the benefits to the fullest.
How to Use AI in eCommerce?
5 best ways:
1. Chatbots Based on Artificial Intelligence
AI-based chatbots are nothing but communication box that runs primarily with the help of artificial intelligence.
The use of chatbots based on AI happens to be one of the major ways of incorporating technology in eCommerce stores.
With the help of a chatbot, customers can very easily and conveniently get the required information via chat, very similar to a human customer support representative. Implementation of chatbots for AI in eCommerce stores comes with the following benefits.
- Round-the-clock customer support
- Offers faster results
- Delivers more accurate details about different products
- Reduces dependency on human customer support agents
- Cuts down costs by reducing the need for human workers
- Multilingual customer support
- Opportunity to collect customer information automatically
2. Customization of Content and Interface
Offering customized content and interface to customers in eCommerce stores is another major way to incorporate artificial intelligence in this sector.
Offering customized interfaces and content comes with the following benefits.
- Increasing the rate of conversion by providing an interface that makes sense for a specific customer
- Send out notifications to customers depending on their actions, such as recent purchases, cart abandonment, etc.
- Personalize VIP program or rewards where rewards and other points are unique for every customer
AI in eCommerce helps offer customized interfaces and content based on the actions, preferences, needs, etc., which turns out to be beneficial for eCommerce in terms of popularity as well as sales.
3. Dynamic Product Pricing
A number of eCommerce stores make use of a dynamic pricing strategy for changing the price of products depending upon demand and supply.
It helps increase the overall profit and, at the same time, keeps the sales consistent when customers are not looking forward to buying those products.
Artificial intelligence in this regard plays a crucial role in dynamic product pricing, thereby reducing the need for human pricing experts.
Ai-based software assists human workers in dynamic pricing in making more informed price changes.
In some cases, the software completely takes over the role of dynamic pricing without any kind of requirement for human interference.
The price optimization software based on artificial intelligence has shown to increase gross margins by about 10%. Moreover, it helps eCommerce businesses to be much more transparent about their pricing strategies.
4. Product Recommendation Engines
Another major use of AI in eCommerce industry is product recommendation engines. It is an AI-based tool that recommends relevant products of interest or preference to customers.
This, in turn, plays a significant role in helping customers discover new products. At the same time, it helps bring about an improvement in the following for the eCommerce stores.
- Increased rates of conversion
- Enhances the average value of orders
- Improves overall revenue for the store
- Reduced the rate of abandonment of shopping carts
The product recommendation engines based on artificial intelligence recommend related products to customers in different locations like the bottom of the product pages, during checkout, and in purchase receipts.
One of the typical applications of AI in eCommerce businesses is to create a seamless, personalized customer experience on eCommerce websites.
Embedding AI into eCommerce stores plays a significant role in understanding the desire of customers appropriately to provide them with exactly what they are looking forward to.
In addition to this, artificial intelligence, along with search engines in eCommerce, helps in keeping an eye on the preference of the users, their buying patterns, viewing history, and many more to offer them complementary products.
The incorporation of AI in eCommerce business offers a customer experience that is far more personal and very well-targeted. When customers get all their relevant needs fulfilled, it leads to increased sales.
AI in eCommerce is doing wonders for the whole eCommerce business. How?
6 Classic Ways AI Can Transform eCommerce Business
Technology has brought about a revolution in the eCommerce world and can transform the sector significantly in various aspects.
However, many eCommerce business owners are still hesitant to incorporate AI into their businesses.
We have listed 6 traditional ways AI can transform their eCommerce business to better understand the technology.
1. Improvement in the Decision-Making Process
Data in eCommerce is essential in two significant ways.
- Long-term strategy
- Short-term planning
The incorporation of AI in eCommerce offers more innovative analytics with intelligence.
Artificial intelligence plays a significant role in the accessible collection and analysis of data in real-time to make smarter decisions about sales, marketing, operations, and production.
It helps bring about an improvement in the overall decision-making process to fetch better results.
2. Automating Various Processes
The use of AI in eCommerce sector helps automate various processes. The eCommerce stores need to be open round the clock on different channels.
It is not always possible for a business owner to run the store 24*7. However, by not doing so, the store loses several opportunities.
It is precisely the situation where AI comes to the rescue.
- Incorporating AI in eCommerce stores allows it to function round the clock almost without human intervention.
- Auto receipt of orders, sending an order confirmation to customers, automated customer support, and many more are possible with AI.
- Moreover, automation with artificial intelligence plays a crucial role in executing an array of repetitive tasks. It simplifies workflows in both the front-end and back-end.
3. Enhances the Efficiency of the Sales Process with CRM
There are several ways in which AI can enhance the efficiency of the overall sales process for the eCommerce industry.
Integrating AI into CRM happens to be one of the best ways to do that.
- AI-enabled CRMs allow them to respond to queries or questions of customers by appropriately answering, sorting issues faced by customers, fixing their problems, and even gaining new prospects.
- Most importantly, some AI-enabled CRMs are capable enough to handle these functions simultaneously, thereby enhancing the efficiency of the overall sales process in the eCommerce industry.
4. Target Marketing More Efficiently and Effectively
Including AI in eCommerce applications is capable of the following tasks
- Better segmentation of the audience
- Readily improve customer targeting
- Proper analysis of marketing data
It helps target marketing in a highly efficient and effective manner which fetches beneficial results in terms of sales. In addition to the analytics part, AI helps in email marketing too.
AI-enabled email marketing helps better target and manage ads and marketing campaigns. Business owners can automatically respond to every customer’s action with a suitable targeted message.
5. Retargeting Potential Customers
Retargeting refers to reminding the existence of an eCommerce brand and its products to the target audience.
The same is to reach out to customers who have previously engaged with an eCommerce platform.
They might have purchased or abandoned the buyer’s journey at a point. Incorporating AI can help identify each of the buyer’s patterns individually.
Those customers can be lured back to the eCommerce store using this information.
- AI-based push notifications are brief and quickly get to the point without annoying customers.
- Moreover, personalized push notifications can offer one-to-one communication.
- The utilization of AI in retargeting campaigns proves to be helpful and cost-effective.
Thus, it is incredibly beneficial in potentially retargeting customers with higher chances of getting them back.
6. Enhances the Overall Customer Service Experience
Superior customer service is the key to success for every eCommerce business. Artificial intelligence boosts the overall customer service experience and takes it to an entirely new level.
AI-powered customer service bots can attend multiple calls and chats simultaneously.
It, in turn, readily reduces the waiting time for the customers, thereby eliminating their chances of getting frustrated or irritated.
Moreover, the use of AI allows eCommerce stores to offer a high level of customer service, making it even more convenient for customers.
The ease of accessibility to customer support helps create a good impression on customers, increasing their chances of being loyal to the business.
Read More: AI In Transport And Logistics: Enhance Quality Of Data, Warehouse Management And More!
The two booming technologies of artificial intelligence AI and Machine Learning have already brought significant changes to the eCommerce industry.
It is expected that these technologies will continue to benefit the industry in the time to come.
Take your eCommerce business to the next level with AI integration. Hire a dedicated app development company and leverage the benefits of AI in eCommerce Industry for your business.
At Coruscate, We have an experienced team of developers, data scientists, UI UX designers, QA engineers and business analysts. We will help your eCommerce business to leverage all the benefits of AI by integrating it into your eCommerce store or application.
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