AI in shopping and E-commerce

We live in a world where online shopping and sales are happening every day. In recent months, they have significantly increased resulting in the eCommerce sector growth. According to recent stats, e-commerce sales worldwide will have amounted up to 6.54 trillion U.S. dollars by 2022. Moreover, 85% of customer interactions will be managed by well-developed machines by 2020. This means many eCommerce companies will implement some forms of artificial intelligence technology into their businesses. Not only does it help them better understand their prospects, but they can also facilitate payment management and detect potential fraud. With that in mind, businesses should opt for AI for eCommerce to be competitive in the market and provide a better customer buying experience. Sounds interesting, right? Let’s delve into the details below!

How AI is affecting e-commerce

With Internet sales growth, the e-commerce sector has become more saturated. If AI is integrated into your e-commerce properly, your business will increase the marketing standards and reach greater heights. According to recent stats, artificial intelligence technology (AI) is expected to reach 36.8 billion U.S. dollars worldwide in eCommerce by 2025. Not only does AI transform the business models of a plethora of brands, but it also helps them deliver a more personalized experience to their customers. Only by collecting, organizing, analyzing data with AI-based solutions can you detect how consumers interact with your brand and make a data-driven decision.

How AI is used in e-commerce

Here we have provided some essential information on the ways of using artificial intelligence in e commerce. Let’s take a closer look below!

Chatbots and virtual assistants

With AI in e-commerce, brands can provide more interactive solutions to their customers. Not only do they offer 24/7 customer support to visitors, but they can quickly collect valuable information such as names, email addresses, geolocation, gender, zip code, and track their behavior. Only by implementing chatbots and virtual assistants can e-commerce businesses function more effectively and tailor the online shopping experience for the consumer without having to do any extra work. In addition to that, chatbots or virtual assistants can also create promotions based on customer preferences. This has resulted in improving the communication and experience of potential customers as well.

Intelligent product recommendations

With artificial intelligence solutions, you can utilize a diversity of methods such as pop-ups, emails, texts to convey information about your products or services. Moreover, you can track how users use searches, what filters apply to better understand customers’ buying behavior. In addition to that, search engines enable displaying ads and product images, which is based on the users’ interest and track with artificial intelligence (AI). Not only does it help businesses improve the customers’ reviews and ratings of their e-commerce, but they can also increase the return of investment significantly and drive business growth and development.

AI personalization in e-commerce

The increasing ability of AI for ecommerce to deliver deep levels of personalization to customers has successfully penetrated the e-commerce environment. Moreover, AI-powered personalization for eCommerce applies the multichannel approach. For example, Boomtrain’s AI engines help companies analyze online customers’ interactions at different touchpoints – mobile apps, the website, or email campaigns. Not only can artificial intelligence engines monitor a multitude of touchpoints a potential customer interacts with to better understand potential customers’ activities, but they are also great at creating a unified customer view based on this data. Only by creating complete customer profiles – users customization – can you offer a better customer experience at every touchpoint and improve performance and profitability. Based on a recent study, a website moulded to its buyer personas resulted in a 171% increase in marketing-generated revenue and in a 900% increase in users’ visit duration.

Filtering fake reviews

It’s no secret that online reviews gain more power than you might think. What’s more, they have become the cornerstone of trust in the eCommerce online shopping world. The users’ feedback and reviews impact the buying decision of other users when they cannot see the products physically before buying them. According to stats, up to 85% of consumers rely on reviews and rates before making purchases.

Unfortunately, fake reviews are creating a huge challenge for consumers – they have to identify what’s real and what’s fake. With AI-powered fraud detection models, you can better grasp what customers feel about your brand. Moreover, it helps you secure your customer feedback and be aware that the reviews they see on the platform are as legitimate as possible. Only by removing fake reviews can you clarify what customers actually think and feel about your business.

Retargeting Potential Customers with AI

As you may know, retargeting is a great option to build brand awareness and increase conversion. However, the sales team doesn’t follow up at least 33% of leads. Here are AI-powered solutions to help you in the e-commerce business. Not only do artificial intelligence solutions analyze the engagement patterns, but they can also retrieve millions of user interactions and actions. Only by collecting and analyzing this data can you identify high-value targets and new leads. Based on this information, you can create a potential audience that can be targeted and retargeted for better conversion rates. That’s why artificial intelligence technology is a way out to close the gap between the data and the related actions to get what the marketing team wants.

Creating a customer-centric visual search

Offering catalogs with thousands of products and plenty of options is the norm for many e-commerce businesses and their online website. However, this may get confused сustomers – they may not figure out what they want to buy. Having that in mind, you need to simplify the searching process and make it more seamless using natural language processing (NLP) and machine learning algorithms. Here AI-fueled visual search comes into play to give online shoppers more control, personalization, and interactivity. With visual search, you can sell an experience that includes multiple products and services spanning multiple brands and providing a more sophisticated online shopping experience.

Sales Forecasting with AI

Some business leaders in the eCommerce market such as Amazon are already utilizing artificial intelligence to forecast sales. Only by using deep data analysis can you gain key information on what impacts potential customer buying decisions and suggest products or services that will meet their needs. Moreover, you can find out when your potential customer is likely to make a purchase. With that in mind, you can put this data to work and discover when the product would be sold to reorder some products. In addition to that, you can calculate the probability of customer purchase and forecast its turnover. That’s why AI solutions development is a good option to control your budget and reorder inventory on time.

Enhanced Cybersecurity with AI

Annually, the eCommerce sector experiences up to 33% of all successful threats. Moreover, 25% of data breaches are mostly targeted on the payment transactions when the credit card information of your clients is stored on your database. Having that in mind, keeping customer data secure is a must for any eCommerce business. With AI-powered solutions, it’s not an issue any more. If integrated with deep learning technology, you can keep fraudsters away. In addition to that, it helps you notice even the most subtle of cyber attacks and alert about more genuine threats. Also, you will be aware that your enterprise and customer data are well protected and safe.

Final Thoughts: Want to implement AI to empower the eCommerce market?

The use of AI in eCommerce continues to rise. Without a doubt, AI for ecommerce produces impressive results. Chatbots and virtual assistants, visual search, and filtering fake reviews are where the real magic lies. However, AI technology development and implementation can be not so easy as it may sound, but doing so is crucial to take your business to a high level in the eCommerce landscape. That’s why it’s imperative for e-commerce businesses to opt for artificial intelligence solutions and take full advantage of them. Don’t hesitate and drop us a line to speed up your eCommerce business growth with the development of AI-powered solutions.!