Artificial Intelligence has taken the world to storm with its amazing features and benefits. Various industries are now adopting this technology to experience its unique perks. The eCommerce industry is no exception, with AI playing an increasingly important role in powering online stores.
Many eCommerce businesses embrace AI in different ways, from using chatbots for customer service to incorporating machine learning algorithms into their product recommendation engines.
Yes, because of the advantages that AI brings to the table, it is no wonder that this robotic technology has been growing at a rapid pace in the eCommerce industry.
While checking out some surveys, it’s found that AI boosts online sales by 50% on average. In addition, the technology can also help businesses reduce their customer service costs by 30%.
Pretty impressive, right? Well, there are even more benefits that businesses can experience when they incorporate AI into their eCommerce operations. Read on further to learn about them in detail.
1. Chatbots Provide An Amazing Customer Experience.
Chatbots are probably the most widely used application of artificial intelligence in eCommerce. They provide customers with a fantastic experience by automating simple tasks like providing product information or answering common questions.
Let’s understand AI’s role in e-commerce with some real-life use cases.
Sephora, a leading beauty retailer, uses AI in chatbots to help customers with their shopping needs. The chatbot can provide recommendations for products based on the customer’s skin type, hair color, and other factors. It can also answer common questions about products and services.
Another great example is the AI chatbot developed by Athos, a clothing company. This chatbot helps customers with their workout needs by providing recommendations for the right Athos product and exercise routine.
In both cases, chatbots provide a fantastic customer experience by automating simple tasks and providing recommendations for products and services.
2. Machine learning Can Improve Product Recommendations
Machine learning (ML) is a subfield of AI that uses algorithms to learn from data. These algorithms can help in enhancing product recommendations on eCommerce websites.
For example, Amazon uses ML algorithms to recommend products to its customers, one of the most significant online retailers in the world. These algorithms are trained on past customer data to understand their preferences and recommend products accordingly.
This approach has resulted in Amazon generating nearly $4 billion in sales from product recommendations in 2016 alone.
So, businesses that incorporate machine learning into their product recommendation engines can see a significant increase in sales.
3. Robotics For Automating Repetitive Tasks
Robots are another form of artificial intelligence used in eCommerce businesses. They are perfect for automating repetitive order fulfillment and inventory management tasks.
Let’s understand automation with an example.
- Amazon, again, is a pioneer in using robotics for automating tasks in its fulfillment centers. It has more than 100,000 robots working in its fulfillment centers worldwide. These robots help Amazon speed up the order fulfillment process and reduce costs.
- Walmart, the world’s largest retailer, uses robots to automate the task of order fulfillment. These robots are used to pick and pack items for shipping. It has resulted in Walmart reducing its order fulfillment time by nearly 50%.
- In addition, Walmart is also using robots for inventory management. These robots scan the shelves for out-of-stock items and track inventory levels. It helps Walmart keep a check on its inventory and prevent stockouts.
Thus, businesses that use robotics for automating tasks can significantly improve their efficiency and bottom line. It is no wonder that the robotics market will reach $87.5 billion by 2025.
4. Natural Language Processing For Understanding Customer Queries
Natural language processing (NLP) is also a subfield of artificial intelligence that deals with understanding human language. It can be used in eCommerce businesses to understand customer queries and provide relevant answers.
For example, Amazon’s Echo device uses NLP to understand customer queries and provide product information, recipes, news, etc. In addition, Facebook’s Messenger platform also uses NLP to understand customer queries and provide them with relevant answers.
Businesses that use NLP can provide a better customer experience by understanding their customers’ needs and relevant information. This, in turn, can bring a boost in sales and revenue.
5. Virtual Reality for Enhancing the Shopping Experience
Virtual reality (VR) is an advanced technology that allows users to experience a virtual environment. ECommerce businesses can use it to provide customers with a more immersive shopping experience.
For example, online retailer Alibaba has launched a VR shopping mall called Buy+. This VR mall allows customers to browse and buy products from various brands using their smartphones. Walmart has also launched a VR shopping mall called Holoride. This VR mall allows customers to browse and buy products from various brands using their smartphones.
Therefore, businesses that use VR can provide their customers with a more immersive shopping experience, leading to an increase in sales and revenue.
6. Predictive Analytics For Predicting Customer Behavior
The next role of artificial intelligence in ecommerce is Predictive Analytics. Predictive analytics is the process of using data to make predictions about future events. It can be used in ecommerce businesses to predict customer behavior and provide them with relevant recommendations.
For example, online retailer Amazon uses predictive analytics to predict customer behavior. It uses this data to recommend products to its customers. In addition, Facebook also uses predictive analytics to predict customer behavior. It uses this data to recommend friends to its users.
Thus, businesses that use predictive analytics can provide their customers with relevant recommendations, leading to an increase in sales and revenue.
7. Visual Search For Enhancing Product Discovery:
Visual search is a different search type that allows users to find products by simply taking a picture of them. It can be used in eCommerce businesses to help customers find the products they are looking for.
For example, online retailer Amazon has launched a visual search feature called Amazon Firefly. This feature allows customers to click the product’s picture and find it on Amazon.
In addition, online retailer Google has also launched a visual search feature called Google Lens. It allows customers to take a picture of a product and find it on Google.
As a result, businesses that use visual search can help their customers find the products they are looking for, leading to an increase in sales and revenue.
8. Voice Search For Simplifying Product Search
Voice search is a type of search that allows users to search for products by speaking into a device. It can be used in eCommerce businesses to help customers find the products they are looking for.
There are two types of voice search:
- Text-to-speech: This type of voice search converts text into speech.
- Voice recognition: This voice search recognizes the user’s voice and converts it into text.
Text-to-speech is more popular than voice recognition.
For example, online retailer Amazon has launched a voice search feature called Amazon Echo. This feature allows customers to speak into a device and find the products they are looking for.
In addition, online retailer Google has also launched a voice search feature called Google Home. This feature allows customers to speak into a device and find the products they are looking for.
As a result, businesses that use voice search can help their customers find the products they are looking for, leading to growth in sales and revenue.
9. Detects Fraud & Mitigate Risk:
Artificial Intelligence can also detect fraud and mitigate risk. Online retailers can use AI to see fraudulent behavior and stop it from happening. It can help online retailers to protect their customers and their business.
For example, online retailer Amazon has a fraud detection system called Amazon Fraud Detector. This system uses machine learning to detect fraudulent behavior.
In addition, online retailer eBay also has a fraud detection system called eBay Fraud Detection System. This system also uses machine learning to detect fraudulent behavior.
As a result, businesses that use AI to detect fraud can protect their customers and business. It’s something that every e-commerce business should consider.
10. Save Time and Money with Automated Shopping
The final role of artificial intelligence in ecommerce is automated shopping. Automated shopping is the process of using artificial intelligence to make purchases for a business.
Many businesses are using automated shopping to save time and money.
For example, online retailer Amazon has launched a service called Amazon Prime Pantry. This service allows customers to purchase products from various brands using their smartphones.
In addition, online retailer Google has also launched a Google Shopping Express service. This service allows customers to purchase products from various brands using their smartphones.
All this results in the customer spending less time shopping and more time enjoying their life. It indirectly increases the sales and revenue of the ecommerce business.
As you can see, there are many roles that artificial intelligence can play in ecommerce businesses. It can help customers find products, make predictions about customer behavior, and save time and money. Therefore, companies that want to succeed in ecommerce should consider using artificial intelligence in their operations.
If you’re looking to get started in e-commerce online, we recommend hiring an eCommerce development company to help you get started. They can help you better understand the process and provide you with the necessary resources to get started. They have a team of professional