In eCommerce, artificial intelligence (AI) plays a significant role. From customer service chatbots, designed to answer specific questions.
Or solve particular problems to recommendation systems that use AI to suggest the best products based on your search history and AI-powered shipping calculations.
It can determine the best shipping method to use for a given order, AI is a big part of the eCommerce universe.
For years, eCommerce websites have relied on complex algorithms to power their product recommendations, calendar recommendations, and search functions.
But throughout the industry, developers have been looking for ways to take their technology to the next level.
With artificial intelligence (AI), eCommerce developers have the opportunity to create personalized experiences that were never before possible.
9 Ways AI Can Help In The eCommerce Industry:
1. Customer-centric research support:
One of the most exciting applications of AI is in search results. As consumers, we rely heavily on the search bar placed at the top of any eCommerce website to find the products we’re looking for.
The results we see on the first page of a search are determined by complex algorithms that evaluate the page’s content, the number of times the page has been linked to, the keywords we input in the search bar, and other signals.
Search engines today use a variety of strategies to improve the relevance of search results, including using natural language processing that allows them to understand the context of a search query and provide more accurate results.
2. Customer retargeting:
Another exciting area of AI in eCommerce is in the world of customer retargeting.
Customer retargeting is the practice of targeting consumers with ads and marketing messages after they have already purchased, intending to increase the likelihood of making a repeat purchase.
By using AI to help with customer retargeting, eCommerce developers have the opportunity to personalize their marketing messages and ads in ways that were never before possible.
For example, an eCommerce website may use AI to determine that a consumer is more likely to purchase a specific product if they are shown a video about the product rather than an ad.
Another example could include using AI to identify high-value customers who have not purchased in a while. The retailer can then use AI to create highly personalized marketing messages only to those customers.
3. Chatbots:
eCommerce websites use chatbots in the area of customer services. Chatbots are conversational interfaces that are designed to simulate human interaction.
eCommerce websites use chatbots as an extension of their customer service teams. Today, most eCommerce websites use chatbots to provide customers with assistance in various ways.
The most common use of chatbots is to answer specific questions or solve customer escalated problems.
But chatbots can also be used to provide recommendations, guide customers through the checkout process, and provide customer service.
This can be particularly helpful for eCommerce retailers who have a significant online presence but may not have a large team available to provide customer support.
4. Enhanced data security:
As consumers, we rely heavily on the security of our data when making online purchases as more and more personal data is stored online, the risk of a data breach increases.
AI is being used to help organizations prevent traditional data breaches and detect when they have occurred.
For example, an eCommerce retailer can use AI to identify signs of a potential data breach, such as an increase in the frequency of customer purchases being made using a credit card that has been compromised.
5. Personalized recommendations:
eCommerce retailers use various algorithms to provide users with suggestions for purchasing products.
The recommendations are based on multiple signals, including the effects that a user has purchased in the past, the products that the user has visited the website to browse but never purchased.
The products that a user has added to their shopping cart but never completed the checkout process.
Using AI to personalize product recommendations can significantly increase the conversion rate of a user who is on the fence about making a purchase.
This guidance goes as far as providing suggestions on how the business can generate more revenue from the current information through data commercialisation.
So the next time you are browsing the best laptops to buy on the internet, you may get notifications or social media advertisements offering the best laptop with discounts and updated features, all thanks to AI.
6. Work as virtual assistants to consumers:
AI can process large amounts of information and make complex decisions quickly. This makes it an ideal technology to function as virtual assistant. Examples include Alexa, Siri or google assistant.
Today, virtual assistants can be used to answer questions, provide recommendations, conduct transactions, and perform various other tasks while being integrated into eCommerce websites.
7. Intelligent agents:
The new intelligent agent negotiating systems have become a popular tool in eCommerce.
The automated agent has three key responsibilities: matching buyers and sellers, facilitating transactions, and providing institutional infrastructure.
The most commonly used intelligent agent negotiation system is the Intelligent Multi-Agent Negotiations or eCommerce system.
It uses AI to perform intelligent negotiations, such as an auction. It is also used in other areas of negotiation, such as the use of AI to negotiate product prices and delivery times.
8. Push sales through wearable technology:
As consumers, we rely heavily on the functionality and reliability of our wearable technology. Wearable technology has become an essential part of our daily lives, from fitness trackers to smartwatches.
These wearable devices’ data is a valuable resource for eCommerce retailers.
The use of AI to assist in the push sales strategy in this scenario is becoming increasingly popular.
eCommerce retailers use the data gathered from the wearable devices to provide users with push sales, recommendations, or notifications about new products and different targeted advertising opportunities.
9. Deal with fake reviews:
Ai can help tackle fake product reviews. Its AI machine-learning engine ensures that authenticated consumer purchase reviews are given more weightage.
A preference is given for comments that were flagged as useful by other users and newer and more recent critiques on the site.
To detect phony reviews, the company regularly examines many review criteria, such as ratings.
This prevents consumers from being influenced by fake reviews and enables them to decide whether to purchase a product. The perfect e-commerce marketplace solutions will let you do this and some more!
Summing up
The use of AI in the eCommerce industry is here to stay. It has the power to significantly increase the conversion rate of a user who is on the fence about making a purchase.
It can also be used to improve the customer experience, assist with push sales and provide a competitive advantage to eCommerce retailers.
The key to success is identifying where AI can add the most value to your eCommerce business then investing in the right tools and technologies to implement these ideas.
