What is the role of AI in transforming e-commerce businesses

Product expansion and cross-selling on Amazon's e-commerce platform is one of the retailer's key success stories, accounting for a whopping 35% of total revenue. What technologies are driving this mode of exchange? Artificial intelligence (AI) is the main driver of Amazon's product recommendation technology.

In addition to product suggestions, online merchants are using artificial intelligence in their e-commerce business to provide chatbot services, analyse customer feedback, and provide customised services to online customers. In fact, according to a 2019 Ubisend survey, one in five consumers are willing to buy a product or service from a chatbot, and 40% of online shoppers find good deals and offers in chatbots.

Global e-commerce sales are expected to reach $4.8 billion by 2021, and Gartner predicts that AI technology will handle nearly 80% of customer interactions (without the use of human agents) by 2020.


So how will artificial intelligence (AI) impact the e-commerce purchasing experience? In this post, we will look at some important uses and real-world business cases of artificial intelligence in e-commerce.


How is artificial intelligence changing the shopping experience?


Online sales will be transformed by artificial intelligence that predicts buying habits based on what you buy and when you buy it. For example, an online retailer could use machine learning to suggest complementary products that go well with rice dishes if a customer frequently purchases a particular brand of rice each week.

AI-enabled e-commerce tools such as Google Duplex, a tool that generates grocery lists using shoppers' natural voices, are developing the ability to place online shopping orders and generate grocery lists for shoppers.


4 Key AI Applications in E-Commerce


Artificial intelligence can be used in a variety of ways in e-commerce, but here are four of the most popular AI solutions currently dominating this market.


Virtual assistants and chatbots


E-commerce retailers are increasingly turning to chatbots and digital assistants as they strive to provide 24/7 support to online shoppers. Chatbots utilise artificial intelligence to provide a more intuitive and better customer experience.

Among other features, chatbots enable AI to increase e-commerce efficiency through features such as:


  • Voice-based interactions with users can be interpreted using natural language processing (NLP).

  • Provides deep insight into customer needs.

  • They can improve themselves over time through self-learning.

  • Customers make suggestions according to their needs.


Intelligent product recommendations


In AI-powered e-commerce, personalised product recommendations increase conversion rates by 915% and average order value by 3%. AI in the e-commerce field is having a significant impact on customer choice by identifying previous purchase history, search products, and online search habits based on big data.

Ecommerce retailers can benefit from product recommendations:


  • More frequent returning customers

  • Increased retention rates and customer sales

  • Online shopping becomes personalised

  • Make your business emails more personal.


AI personalization in e-commerce


Personalization, a key technology in e-commerce marketing, is one of the most effective modes of AI. By generating customer data from specific data collected from online users, AI and machine learning in e-commerce are developing important insights into customer behaviour.

Boomtrain, an AI-powered tool, can measure how customers interact online by analysing data from multiple touchpoints (including mobile apps, email campaigns, and websites). Computer Vision Applications in Retail & Ecommerce can use this information to recommend products and provide customers with a consistent experience across devices.


Inventory Management


It is important to maintain adequate levels of inventory to meet market demand without adding too much inventory to idle inventory.

While traditional approaches to inventory management only consider current inventory levels, AI-based inventory management allows you to estimate inventory levels based on a variety of factors, including:


  • Sales trends in recent years

  • changes in demand for our products that are expected or anticipated;

  • Stock levels may be affected by supply-related issues.


As AI develops, automated robots, which are considered the future of e-commerce AI, are making warehouse management as well as inventory management possible. Artificial intelligence robots have many advantages over human employees, including the ability to store and retrieve inventory 24/7 and the ability to deliver products immediately after ordering online.

Artificial intelligence in B2B e-commerce is transforming the industry in many ways and providing numerous innovative solutions. Several case studies on artificial intelligence have made an impact in the field in the past year.


Read Also : How Ecommerce AI is Transforming Business


Conclusion:


This article discusses the role of artificial intelligence in providing customer experience and innovative solutions in e-commerce. Personalised shopping, product recommendations, and inventory management are common uses of artificial intelligence in e-commerce.

Do you want to know how to implement artificial intelligence in your business as an online retailer? Countants is an established data analytics company that provides AI solutions for e-commerce startups with solutions focused on product analytics and KPIs for e-commerce.

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