Artificial Intelligence has proved to be a game-changer for almost every industry, and eCommerce is one leveraging great benefits. Global eCommerce sales are expected to rise by $30 trillion in 2023, as AI offers customized experiences to businesses.
It has become an irresistible tool for retail and eCommerce businesses and provides better analytical insights with more accurate customer recommendations. AI implementation reduces business expenses and helps you stay competitive no matter what.
Without any second thought, AI has brought a transformation in the industry. Amazon, Myntra and other robust platforms already know the power of AI and how it has been helping businesses obtain real values with higher business profits.
Let us uncover the most crucial AI trends in eCommerce and how applying the technology will boost your company's reputation and growth.
What is AI in the eCommerce Industry?
Artificial Intelligence enables organizations to predict customer behavior and automate operations accordingly. Whether you are a startup, manufacturer, retailer, or have an eCommerce store, it helps transforms how you sell your products and reach targetted audiences. AI is solving the real-world problems the eCommerce business faces.
Statistics you must be aware of AI in eCommerce
AI-driven the business of $8 billion and is expected to reach $49 billion by 2021, in a wide range of eCommerce industries. As per Gartner, by 2020, more than 80% of customer interaction in the eCommerce industry will be handled by AI. You would be surprised to know that 20% are ready to purchase things from a chatbot, and these customers can spend up to $350.
The eCommerce industry is one of the leading adopters of Artificial Intelligence, followed by FinTech. Around 84% of the eCommerce businesses are actively working with AI solutions in their businesses or have it as a top-notch priority.
- Around 40% of customers use chatbots to check for new discounts, offers, deals, and communication.
- Google invested 400 million euros and took over an AI company, Deepmind.
- Amazon uses an AI-powered recommendations engine to make personalized suggestions and drive 35% of annual company sales.
- The adoption of AI-driven automation in the retail and product industry is expected to rise from 40% to 80% in the coming years.
How does Artificial Intelligence Impact the eCommerce Industry?
There are plenty of ways businesses can leverage AI in eCommerce and boost their performance. Let us take a closer look at how AI is doing a lot more than simply easing customer interaction.
1. Personalized Recommendations
You have seen eCommerce platforms, including Amazon that when you search for a particular product, you get a lot of recommendations about the same product on your social media. Yes, it is personalization that makes the customer feels valuable and important.
These personal recommendations boost the customer experience and help them purchase with ease.
2. Voice Assistance
As AI continues to get advanced, voice assistance is another new technology that emerges in the eCommerce industry and drives a better customer experience. It, therefore, provides a smooth experience to the customers. All those who want to get rid of the hassle of typing can speak and shop the products anytime.
Using smart voice assistance like Alexa finds the products easily while you make an order. Ordering and shopping with the natural speech are much faster, and it allows people to do all other things.
3. Chatbot Introduction
Chatbots are one of the popular AI-based solutions and are conversational tools facilitating a seamless interaction between the customers and the brand. AI-driven chatbots are intuitive and allow users with a better customer experience.
Chatbots use Natural Language Processing (NLP) that clearly understands the customer messages and give them the best possible solutions instantly. The chatbot experiences continue to enhance with time and are considered one of the most cost-effective and engaging methods of driving customers to your platform.
4. Forecasting and analytics
Artificial Intelligence in the eCommerce business is helping people make informed decisions, and more companies are using it to have accurate sales forecasts and manage stocks and outcomes of what they market.
With the AI adoption, you can improve your targetted audiences, analyze your potential customers and display your relevant interests on the social media platforms. AI technology has made it possible for businesses to increase their leads and market as per the business needs.
5. Fraud detection
Fake reviews can have a devastating impact on the company’s reputation and impact the buying decision of the customers. They will leave your website, and the businesses leading to your business degrade.
With AI, you can easily detect fake reviews. AI allows access to all the current reviews, and archived ones. AI applies sentiment analysis to behold for all the fake comments.
6. Smart Inventory Management
Inventory management is all about maintaining a specific level of stocks to fulfill customer demands. The use of AI in inventory management allows the stores and warehouse operators to keep the stock on track. With AI, inventory management businesses can enable the stores to anticipate the product demands, sales trends, and issues related to supply.
AI in eCommerce is a game-changer and provides the most tangible business outcomes. No matter what solution you can apply to your business, the results will be worth watching.
Are you looking forward to enhancing your eCommerce customer behavior for the users? We have a reliable and expert team that supports your development process and introduces AI to your eCommerce platform. Let us discuss this more in detail!