Role of Artificial Intelligence in Revolutionizing eCommerce Business
The eCommerce sector has consistently evolved in the past decades, starting from the brick-and-mortar industry, influencing physical stores to revise the strategy they do business. Depending on the technological advancements, eCommerce continues to reinvent its game towards it like mobile applications, eWallets, and so on to keep customer engagement and loyalty. These transformations make the eCommerce field more interesting to see how the next-gen will be lucrative for retailers.
As Artificial intelligence solves real-time eCommerce challenges, it seems to be a game-changer for the Retail and eCommerce industry. Artificial intelligence was valued at USD 1.80 billion in 2020 and predicted to reach USD 10.90 billion in 2026, at a CAGR of 35% over the forecast period 2021–2026 as per the Research.
Artificial intelligence spans every segment such as supply chain optimization, converting insights into actions, customized shopping experience by utilizing algorithms. Also, AI is able to make smarter business decisions to increase ROI. By the end of this blog, you will be able to figure out how AI can be a game-changer for your eCommerce business.
Benefits of Implementing AI in eCommerce Business
Retailers can use AI and advanced algorithms to analyze consumer behavior based on demographics, social media behavior, and purchasing journey. These insights can be used to enhance engagement, more personalization which leads to a better shopping experience. Let’s explore deeply how AI leveraging the retail & eCommerce sector.
- Hyper-Personalization With Smart Product Recommendations
Artificial intelligence can figure out customer behavior on online platforms to make predictions in terms of defining what products customers will like to buy, then it shows in a recommendation that your customer might interact with it.
Amazon is already adopting this. As we can see, Amazon recommends products based on our browsing and purchasing history, so there are high chances of increasing conversion rates. Rather than being greeted with lots of products in which you don’t have interest, you will be able to explore the exact items you wanted to. This kind of hyper-personalization is good for the customers as well as favorable for the retailers too.
2. Visual Search Enhancing User Experience
One of the most interesting features of Artificial Intelligence is enabling visual search which uses pictures to find that particular product. Here customers don’t need to find what brand of it, what it is called, or any specific description. While using visual search, the customer has to just upload a picture of the particular product and smart image searching technology will fetch the same or similar products serving you. How cool is that!
Amazon launches StyleSnap which allows customers to upload an image of the outfit. StyleSnap then gives recommendations of the same or most relevant outfits to purchase on Amazon.
3. AI-Enabled Virtual Assistant To Enhance Customer Experience
An AI-enabled virtual assistant is an application program that can perform voice or text command-based tasks for customers. The most relevant and widely used examples of AI assistants are Siri, Alexa, and Google Assistant as they can handle multiple consumers at once and can work 24/7. It can take your commands before bringing out a request. Sometimes customers need a little help while making a purchase. Artificial Intelligence came up with solutions in the form of chatbots, virtual assistants, and voice command assistants to unexpected problems without human intervention.
Chatbots are apparently the most accessible form of AI. It quickly responds to customers and can be able to provide satisfactory and personalized answers that engage a customer more towards a conversion. Chatbots are able to gather data and tracking behavior to bring a seamless shopping experience.
4. Dynamic Pricing influencing Ultra-Customized Discounts in Real-Time
It’s very obvious to fluctuating prices based on demand and supply, competition, and many factors influence price to increase profitability. Artificial Intelligence using power algorithms with customer data, competitive products, and their pricing data and purchasing history to predict what kind of discount to give customers to increase conversions in real-time. It leads to providing tailor-made discounts for eCommerce shoppers in real-time. Amazon is currently seeing extensive success by applying dynamic pricing in the tough competitive era.
5. Predictive Behavior Modeling To Make Better Decisions
It is the feature of AI which increases curiosity towards how one can predict consumer behavior with the data source of different platforms. Predictive behavior modeling can be utilized to generate predictions based on plenty of purchasing related things as follows:
- If a user will buy in a specific product category
- If a user will return to the specific product
- What products user frequently bought
- Demand forecasting for distinct product categories
With predictions, brands can optimize go-to-market strategies and efforts, leading to boost revenue and higher profit margins.
6. Optimizing Inventory & Warehouse Management
Artificial Intelligence plays a crucial role in inventory and warehouse management as it can help to reduce inefficiencies with a predictive approach and automating operations. AI can automatically order the exact amount of raw materials to fulfill market demands. Also, it helps to track inventory to reduce stock-out errors to increase productivity and operational efficiencies.
Getting ahead of the game with Artificial Intelligence.
Artificial Intelligence is already booming the eCommerce industry with massive advancements and many companies successfully adopting AI to enhance the shopping experience. The opportunities for taking advantage of artificial intelligence in eCommerce are vast.
If you are someone who wants to adopt lucrative solutions to boost the eCommerce business and efficiency to make revenue, X-Byte Enterprise Solutions have expertise in providing turnkey solutions for the Retail & eCommerce Industry.
Reach out to us today to talk about your perspectives.
