How Artificial Intelligence is Changing the dynamics of Ecommerce

The e-commerce industry is evolving in new and unexpected ways. Studies show that by the year 2021, worldwide retail e-commerce sales will reach $4.9 trillion. It is now not enough to simply set up a website online to promote your products; if you want your business to stand out from its competitors, there are myriad options you can choose from to make a mark. One such trend that is gaining popularity is the use of artificial intelligence to boost one’s business. In fact, as per statistics, 72% of business leaders see AI as a significant business advantage. Businesses have started tapping into the synergy between the e-commerce industry and AI, and have finally started realising the potential it has. Here are some of the many ways you can make use of artificial intelligence for e-commerce purposes:

AI allows for more personalization while advertising to customers:

Before the advent of artificial intelligence, there was a lot of manual work involved in personalizing the business experience for customers. But now, businesses have found the best way to be more personalised in their approach to each customer. With artificial intelligence, you can analyse the activities of customers on various websites, mobile apps, emails, and so on. This can help you understand what they want, so as to filter and advertise the kind of products that they actually need. No customer will remain interested in engaging with products that they do not actually want to buy. With artificial intelligence, you can offer your customers personalised offers, discounts, and so on. You can also figure out when exactly to advertise your products, and also understand exactly when the customers would want to make a purchase.

Virtual voice assistants can provide an interactive shopping experience to customers:

For anyone with a smartphone today, Alexa, Siri, and Cortana are names that are quite familiar. Many people use the help of such virtual assistants to gather data quickly and efficiently, and for some, they offer a simple way to pass time. However, the benefits of using voice assistants do not end there. They are now expected to be put to use in the e-commerce industry as well in order to promote sales and better customer experience. Experts predict that all e-commerce websites are going to employ virtual assistants in the near future, to make the shopping experience more interactive and less time-consuming.

Automated chatbots can be helpful in dealing with customer queries and complaints:

More and more companies have started adding a chatbox in their website homepages that generally pop up whenever a customer makes a visit. Such chat boxes are programmed to interact with customers in a highly personalized manner. An efficient automated chatbot can help the customer to choose the right product, compare it with other products, make a purchase safely, and so on. Chatbots can also help in directing customers to the right service agents in case of questions or queries. Customers can interact with these efficient chatbots through text with ease. The best part is that while the entire process of customer interaction is personalized, there will be the least amount of manual work involved in putting it into action.

AI can help to distinguish between genuine and fake reviews:

For many giant businesses, fake reviews have turned out to be a major problem. The bad and false reviews posted by rival companies on the websites and product pages of such companies can significantly impact their sales percentages. This is because a majority of customers are influenced by the positive and negative reviews of a product while making a decision on whether to purchase it. However, machine learning algorithms that come with AI can help in dealing with such issues effectively. Such an algorithm puts genuine reviews by customers on top, while sending fake reviews down to the bottom. This can help in ensuring that customers will make a choice about purchasing your product based on genuine reviews, and not based on fake and negative ones.

AI can be used to make sales forecasts and perform efficient inventory management:

With the help of artificial intelligence, you can predict the sales you can make in a prescribed time period. This can help you prevent the stocking up of products that you do not actually need, and to do so when necessary. You can also figure out what type of products make better sales during specific time periods, and plan accordingly. Thus, AI can help you be more cost-efficient, and can also help you save the time spent on manual work.

Statistics show that 85% of business executives believe that artificial intelligence can help them gain an edge over their competitors. This means that the potential of artificial intelligence for positively impacting the e-commerce industry is finally gaining recognition. AI is expected to bring more such benefits to the industry in the future as well.