How Artificial Intelligence is affecting the eCommerce industry

Artificial Intelligence, in simpler terms, is intelligence shown by machine such as computer, application, and software-enabled machines – that are not human – that are artificial or made by humans. We live in an era dominated by AI.

The technology has an impact on the life we lead. From growing crops to food processing and from how we communicate to how we do business – AI has some kind of contribution in all aspects of our life.

AI is has a deeper and stronger grip on future of doing business. After Google acquired DeepMind, an AI startup having specialism in machine learning and algorithms - other IT giants such as Facebook, Microsoft, also followed the trend and showed a keen interest in exploring further possibilities pertaining to AI.

Global businesses are rapidly adopting AI to streamline and fortify their processes. Have you ever realized that most of the popular eCommerce portals have deployed AI to handle customer interactions? Chasing this trend allows them to save millions of dollars, and thousands of hours of precious time of their agents. And a Ubisend report says that 40% of visitors on an eCommerce site use AI chatbots to find offers and deals. The same report also mentions that 1 in 5 customers is willing to buy from a chatbot.

A Business Insider articles predicts that as much as 85% of customer interactions will be without a human by 2020. Introducing AI also enables them to identify fake reviews posted by sellers. In the language of Marketing Warfare, it is called - a high level of customer care.

Products recommended to customers while browsing through the site is chosen by the AI mechanism. Customers are more likely to buy recommended items related to what they have already seen or searched for on an eCommerce portal.

Use of AI-enabled applications is allowing eCommerce businesses to increase their sales while keeping their procedures simple yet more accurate. The efficacy of your website CRM can be enhanced manifold by integrating AI. However, with that, some webmasters will need to update their backend to advanced product options.

According to survey, worldwide retail eCommerce sales grew to $ 2842 Bn last year from $ 1336 Bn in 2014. The same report shows expectation that this figure is going to cross $ 4878 Bn in 2021.

Check out below some of the ways how eCommerce can make a smart use of artificial intelligence to scale up on the success ladder –

Find and target potential customers

Businesses are overloaded and confused with the bulk of data they have gathered through various sources. This also includes the data of their past consumers. AI can help businesses to find potential customers based on their interests and browsing history.

Remember seeing a product on Amazon on your phone, and then seeing that product on your Chrome browser, Facebook and Instagram? Smart ads backed by AI show you the same product for certain period or until you choose to close them.

Retarget customers

Reselling has always been a key driving force for businesses across industry. For eCommerce as well, pitching ex-customers can offer multiplied gains. With the help of AI-based CRM, sales teams can find which customers might be interested in buying related products, accessories, or reordering.

Such an advanced CRM can identify and pitch your products directly without much human involvement. Sending reminders, tracking their visit and identifying new browsing trend could also be possible with AI.

More efficient sales process

In an age of smartphones, what an eCommerce business needs is an even smarter sales process. Traditional way of sales and marketing is now an old practice. Today we have marketing channels that use artificial intelligence to help the marketers show their ads only to those people who fall in their buyer persona.

Interactive sales process

Customers want to learn every aspect of a product they are willing to buy. That’s why they compare specifications and most importantly, price of a product being offered by different sellers on different websites. They have a long list of questions to be answered.

AI Chabot are being used by almost all eCommerce giants these days. They efficiently handle customer queries and resolve customer. AI can also help customers find the right product for their needs. Moreover, it makes way for an advanced level of personalization. Offering personalized experience or content to the user increases chance of sales.

Smart advertising channels

Google, Facebook, Instagram, YouTube, and SnapChat ads – can be used to find potential buyers or sales qualified or sales ready leads – which your sales team can win over with its efforts. You can integrate AI into your CRM to answer customer queries, solve their problems, and thus, find an opportunity to sell or resell. That means, less efforts and spends, but more outcomes.

Inventory management

eCommerce businesses are all about inventories. For an eCommerce business, it is a challenge to keep track of everything available in the company. From a piece of stationery to computer and the stock available – everything should be kept up-to-date. AI enabled CRM can help your staff manage inventories effortlessly and accurately without having to involve in it manually.

AI applications can predict future demand of certain items based on their present demand and outflow. In short, an inventory managed by AI knows what it needs by itself. None of your staff member has to count and match each item to keep the inventory updated.

The use cases of AI in eCommerce aren’t just these. Deploying AI in eCommerce process means more power to workers and management. They can now focus on core activities of value.

Improving recommendations and experience for customers makes way to build trust and boost sales. Al has been going in this direction so far. Further customer-friendly developments are needed so an even better customer experience can be offered.

However, there is something eCommerce businesses should take care of. These are some common yet severe mistakes that an eCommerce businesses should avoid at any cost. These mistakes can ruin all your expectations from AI.

Need help with your eCommerce website or apps? Get in touch.