How Artificial Intelligence is Helping eCommerce Businesses?
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Artificial Intelligence is one of the cutting-edge technologies that are revolutionizing the eCommerce industry and for all the good reasons. AI helps retailers in more ways than one in boosting sales and driving growth.
According to a survey by Statista, 70% of decision-makers in the eCommerce industry believe that AI would improve their business by providing personalization in the coming years and more than 51% said that it is something they are actively working on to drive business growth.
If you are still unaware of how AI can help eCommerce businesses, this article is for you. Here, we will be listing some ways in which big giants are utilizing AI to improve their business processes and make their mark in the online shopping world. So, let’s get started.
What is Artificial Intelligence?
AI is a technology that helps entrepreneurs develop a software product with decision-making and learning capabilities, increasing the overall efficiency and profitability of a business.
Its three major components are data mining, natural language processing, and machine learning. The process of implementing AI starts with data collection, followed by understanding human-computer understanding behavior and the development of algorithms to solve business problems keeping past experiences in mind.
Especially for eCommerce businesses, artificial intelligence is of great use as it helps businesses find prospective customers, communicate with them using chatbots, simplify sales, set up customer-oriented online searches, and do many other things efficiently.
Let’s find out how by analyzing several uses of AI for eCommerce.
6 Benefits of Artificial Intelligence for the eCommerce Industry
Several big eCommerce giants like Amazon, Sephora, and IKEA are already leveraging the benefits of AI and Machine Learning to simplify their operation. And, your business too can use it to its fullest potential. Here’s how:
1. Product Recommendations
One of the most important eCommerce metrics for retailers is Average Order Value. The AOV of your eCommerce business has a direct impact on the revenue you generate and you can improve it with the help of Artificial Intelligence.
Using the data collected, AI can impact customers’ decisions of buying products using its knowledge of searched products, previous orders, and browsing habits. When you provide on-point product recommendations, customers can not ignore them and they end up spending more on your online store. A win-win for your business!
2. Robust Search Experiences
One of the main reasons behind customers abandoning eCommerce stores is not being able to find the products they are looking for. Online businesses usually have a large catalog of products and it is hard for a user to find the one he desires.
Thus, creating a search experience that is robust and accurate is essential. Artificial intelligence is a technology that can help accomplish the needful. It can help you create a search engine that works exactly like a sales representative by providing customers with the right products.
Or, eCommerce businesses can also integrate AI-based search software like Doofinder and SearchUnify to provide a better search experience.
3. Improved Customer Service via Chatbots
With the help of AI, eCommerce businesses can answer their customer queries 24/7, which leads to increased conversions and sales.
Having responsive and prompt customer service is a necessity for eCommerce businesses due to the rising demands of customers and lack of patience. Chatbots can direct customers to particular product pages or FAQs so that they can find the best response to their queries, resulting in a personalized customer experience.
4. Optimized Pricing
Pricing plays an important role in not just B2B but B2C businesses as well. Also, by fluctuating your prices depending on supply, demand, and several other factors, you can find what works best for your business. AI can help you do that effectively.
Having access to the right customer data, AI tools can predict the right price of a product and the amount of discount that should be offered in order to make maximum sales and profit.
5. Effective Marketing
eCommerce marketing is all about understanding your buyers’ behavior and modifying your offerings according to the same. Using AI, eCommerce marketers can understand their customers and identify their preferences easily and effectively to segment them into different groups for effective marketing.
The delivery of personalized content and marketing will also lead to an increased customer retention rate.
6. Trend Forecasting
That’s right. Artificial intelligence can help you predict the future so that you can adjust your offerings accordingly. After the pandemic, most businesses will want to plan their inventory keeping real-time and past data in mind. AI can help you do that in a profitable way.
You can use it to find out future sales and demand patterns according to customer behavior so as to plan your inventory and prepare the delivery team accordingly.
Artificial Intelligence is no more science-fiction and eCommerce businesses are using it to generate millions of dollars every year. If you too are planning to scale your online business leveraging the benefits of artificial intelligence, get in touch!