The Role of AI in eCommerce

Original article was published on Artificial Intelligence on Medium


The Role of AI in eCommerce

We all know the rise of eCommerce industry after this pandemic has started. eCommerce is not the newborn baby, it has existed from the beginning, but not in that number. Today, people have become more tech-friendly and digital. They are purchasing more and more items from the online store despite looking for the availability of the physical brick and mortar stores. It has increased the growth of eCommerce hugely, as for the greed of the more numbers of consumers, and huge sales while operating the business from home, many of the business owners shut their physical business and stepped for the online world.

The traditional eCommerce is past now, it has been boomed up with the huge growth of consumers, and updating with modern technologies. To keep the consumer’s number increasing and getting a competitive advantage, the online business owners are leveraging many of the updated technologies in the eCommerce. These modern technologies help to improve the customer experience, increase more customer engagement, increase sales, lowering the costs, and strengthen the brand value. Artificial Intelligence is one of those modern technologies reshaping the future of eCommerce. But before going to the points of the application of AI on eCommerce, let’s discuss the way AI is transforming the traditional shopping experience!

How AI is transforming the way of traditional shopping experience?

Artificial Intelligence or AI is not an unheard concept anymore, it has applications in every part of our lives by automating certain repetitive tasks and making us free to focus on the more important tasks that can not be performed without a human touch. Slowly with this gesture, AI is getting into every aspect of our lives and being inseparable. Through the AI application, the machines are helping us to get rid of the repetitive and time-consuming tasks and rely on them for making error-free wise decisions.

It has a simultaneous effect on eCommerce too. It has opened a whole new way of shopping by transforming the traditional eCommerce system and adding a whole new level to it. AI has its own different ways to help the businesses differently. With the help of the AI applications, the business owners are able to get more customer engagement on their virtual doors and provide a better way of shopping to the customers for improving their experience, and lastly by lowering the other costs and boosting up the sales. Even, the AI can be able to personalize the customer base to get an idea about what kind of products the customer likes to see or purchase, and based on it, the websites are able to display and recommend the products that the consumers might like to purchase.

The major use of AI in the eCommerce

There are lots of AI applications being used in the eCommerce websites, for increasing sales and revenues. Different website owners have leveraged different AI applications to make their business top rated and stay out of the market competition. Despite this, there are some common and major AI applications that are used in eCommerce sites to improve the customer experience and increase sales by lowering the costs. Following are the major application of AI in the eCommerce,

Chatbots: Chatbots are the greatest application of AI, that we see in the eCommerce sites. The main benefit of having eCommerce is to doing business at customers’ convenience. That means the site should be active 24/7, as the consumer can come to your site for purchasing at any time of the day, beyond your working hours, even while you are sleeping. If you hire a human assistant to maintain the customer service, then it is nearly impossible for a human being to provide service all day, and answer the same questions repeatedly without getting frustrated, and it will take much time as well. But for the chatbots, they work on the website 24/7 without having a break, and they will there always to answer the customers’ FAQs, to keep them engaged to the site. They can answer the customers wisely by understanding the tone of the question asked with the help of deep learning. They are able to communicate with the customers using the human natural language. Thus, they can lower the business cost by avoiding a full-time person hire.

AI-based Product Recommendation: We can see recommended products when we arrive at a shopping website, and AI is the superhero behind this scenario. With the complex algorithms and logistics, AI is able to analyze our search history and order history, and thus it can be able to detect the genre of the products which we may like and recommend them to us. And this is the best thing on a website which will eventually increase the sales, as the customers don’t have to search again for a product.

AI-based Customer Personalization: It happens, when we visit a website for the first time and get a recommended product that we may have searched for or have thought to purchase. And ironically that is also for this genius technology AI. It has all the records of the things we search online, maybe on some other sites, as well as on the search engines. From that, using the logistics they analyze the products that we may like. By crawling on the user’s search history and social media interaction, the AI of the eCommerce site is able to find out the choices of the customer base, and it practically increases the sales. Also, if you hire a person to track all the records and then display the products of customers’ choice when they visit, it would consume a good amount of time, which is done by the AI in some minutes.

The above passages show you the role of AI in the eCommerce industry. We all know that technology is being a must-have part of our daily lives, and with its application on almost everything, it is just giving us the reasons to rely on it. Though again, there are cautions, as technology and machines can not be able to perform on their own until the data will be put into it, which needs a human touch. If the datasets are correctly put, then it will be able to help us, unless everything will go in the wrong direction.

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