How AI is Shaping the Future of Online Shopping?

Currently, AI in eCommerce has become a global trend. Many eCommerce development companies are switching over to delivering smart AI solutions to stay ahead of the curve. 

But why? 

There are many reasons. 

Leveraging AI has proven to be a boon for online retailers in the form of personalized shopping, 24/7 customer service (chatbots), in-depth data collection & analysis, streamlined inventory management, seamless logistics coordination, and more. 

More importantly, it’s aiding eCommerce companies in terms of global expansion and improved revenue generation. For shoppers AI contributes to personalized recommendations, speedy deliveries, and overall a comfortable shopping experience. 

Precisely for the above-mentioned reasons adopting artificial intelligence has become a necessity rather than a luxury for eCommerce business owners in this quickly transforming world of online shopping. 

Before we learn in detail about how AI is shaping the future of online shopping, let's start with understanding AI in eCommerce.

Understanding AI in eCommerce 

AI has penetrated into various industries, eCommerce being on top of the list followed by FinTech and social media platforms like YouTube. The reason behind that is - the growth of the eCommerce industry, and highly beneficial uses of AI in eCommerce. 

At present, 84% of eCommerce companies have integrated AI into their online shopping stores to provide better services and earn more revenue. 

AI has now become an integral part of eCommerce businesses. Whether it is about implementing smart search facilities or streamlining the entire delivery process, AI is instilling intelligence into every aspect of eCommerce. Let's have a look at some of the AI subsets that are helping eCommerce businesses in optimizing their business processes and improve the quality of their services. 

AI Subsets Transforming eCommerce

There are various AI driven technologies like machine learning, natural language processing (NLP), predictive analytics, conversational AI, and deep learning. Let's have a look at how each of these subsets of AI are transforming eCommerce.

Machine Learning 

Machine Learning being a subset of Artificial Intelligence is capable of providing personalized product recommendations and driving decision-making processes. eCommerce businesses can take advantage of machine learning for gaining valuable customer insights after detecting customer behavior patterns and making predictions from the data and human interactions.

Natural Language Processing (NLP) 

Natural language processing enables machines to comprehend and interact using human language. It automates the process of conversation between your online store and customers. For example, chatbots integrated into your online store can attend to your customers 24/7 without any interruption.

Predictive Analytics 

Predictive analytics in eCommerce platforms is used to identify customer feedback, spot purchasing trends, and determine ideal marketing channels and strategies to come up with solutions that help online businesses convert faster and avoid unforeseen conditions. It has also proven to be a valuable tool for creating personalized content and presenting it before the customers based on their entire buying journey.

Deep Learning 

Deep learning is an AI mechanism that uses huge amounts of data to determine user actions and the latest trends. Based on that information, eCommerce businesses can understand user behavior at a deeper level than machine learning. Deep learning algorithms are capable of tracing each point of a buyer's journey and analyzing facts to predict their future needs. Based on that information, eCommerce companies can design personalized marketing campaigns and gain successful conversions. 

Therefore, when used properly these subsets of AI can work wonders for eCommerce businesses. Furthermore, let's have a look at some practical use cases of AI in eCommerce to get a better understanding over how it can benefit your online business. 

AI in eCommerce - Use Cases 

Applying AI in eCommerce can be a game changer for your business. But, how to make its optimum use to get rewarding results. Below-mentioned are some use cases where AI is playing a pivotal role in eCommerce which are worth implementing in your online business. 

Personalizing Experiences 

Every customer on your eCommerce platform might have different requirements. Through AI you can analyze every customer's behavior throughout their journey and provide personalized recommendations. This ultimately helps in boosting sales and accelerating revenue. 

State of Personalization Report 

Optimizing Prices 

AI enables real-time market analysis. Based on that information, you can optimize your prices over your online store. There are many AI powered repricing solutions available in the market that can help you perform competitive analysis, observe supply and demand, and based on that determine optimized prices for your products on your store helping you to grab maximum sales opportunities.

Segmenting Customers 

Before personalizing user experiences, it is important to segment customers based on their demographics and browsing habits. AI helps eCommerce companies to strategize better targeted campaigns that allow them to improve their profits.

Implementing Smart Logistics 

Customers now prefer quick deliveries. The patience of waiting for the products to arrive within 7-8 days after ordering is getting obsolete. AI can make logistics smarter and enable same-day deliveries to happen which can delight customers and make your online store popular and lucrative. Smart logistics refers to using real-time information that helps in stocking, and ordering inventory accurately.

Forecasting Demand & Sales 

AI integrated into eCommerce solutions can help build systems that forecast demand and sales capabilities. Forecasting demand and sales with minimal discrepancies has become a necessity these days to help businesses in optimizing their supply chain processes, reduce wastes and deliver within required time frames. 

Enabling Voice Search
 

Voice search facility on eCommerce stores is becoming quite popular these days because consumers can send voice commands while driving or cooking when their hands are not free to type text in search boxes. AI can help eCommerce businesses to integrate voice technology offering better convenience to their customers while searching for the products and enhancing their shopping experience.

Collecting & Analyzing Reviews 

AI enabled tools can help in automating the process of collecting and analyzing reviews which ultimately provides actionable insights enabling visionary decisions and improved customer relations. Making smart decisions before problems arise enables online stores to retain their customers and boost conversions. 

Predicting Customer Churn 

AI enabled eCommerce platforms can predict risks ahead of time. Sometimes customers might consider leaving the online store without purchasing anything. With customer churn prediction algorithms powered by AI you can take steps that enable positive customer relationships.

Therefore, these uses of AI in eCommerce have made online shopping more convenient, cost-effective, and versatile creating a win-win situation for customers and business owners both. 

This is the reason why - 

Statista 

AI has and will continue to improve the way businesses engage, communicate, and delight their customers. Let's have a look at some of the most prominent benefits of implementing AI in eCommerce. 

Benefits of Integrating AI in eCommerce

Let’s have a look at these benefits in detail -

Automates Mundane Tasks 

eCommerce solutions powered by AI can save your time by automating mundane tasks relating to inventory management and routine customer inquiries. Chatbots automate your entire customer support domain freeing up your human resources. In any business saving time and money spent on human resources leads to improved productivity and profitability.

Improves Customer Services 

As AI is known for enabling personalized recommendations and chatbots, it can power eCommerce websites and apps to provide excellent customer services. As soon as a shopper opens an online store they get personalized recommendations based on their past purchases. Also, whenever they are facing any kind of problem, chatbot enabled live chat can help in answering their queries round the clock.

Enhances Security 

AI enabled eCommerce platforms can help in preventing fraudulent transactions. Moreover, you can use AI tools to save credentials and users' confidential information like passwords and credit/debit card numbers. Security is very important to win the trust of your customers and thus AI helps you in doing that.

Streamlines Shipping Processes 

AI integrated with eCommerce platforms helps track the products, from procurement to delivery. At every step of inventory management, you can view real-time updates and make changes accordingly to provide a comfortable shopping experience and timely delivery to your customers.

Enables Effective Marketing 

With AI-powered eCommerce solutions, you can easily forecast demand and sales of your products. Machine learning algorithms can easily pick up unusual customer behavior patterns which help in changing marketing strategies before time and sustain customers which are likely to move to other brands or online stores. To capture the attention of the customers it is important to track and analyze accurate figures and AI enabled eCommerce systems have the potential to do that.

Conclusion 

Finally, now you know the benefits of AI in eCommerce and how it can be useful to your business. Partnering with the best eCommerce development companies who have experience working on AI-powered eCommerce projects would be the first step you can take to benefit your customers and business. 

So, what are you waiting for? As this digital era progresses, AI is going to dominate the eCommerce industry. Early adopters would benefit from this evolution, and thus, you can consider consulting top Artificial Intelligence companies for integrating AI into your eCommerce store to make it more user-friendly, trendy, and profit-generating.