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For the uninitiated, eCommerce is business carried out using the Internet. Artificial intelligence is simply put the ability of computing devices to do tasks usually done by humans. Currently, Artificial intelligence is leveraged to propel the burgeoning eCommerce industry to new heights. This trend is likely to only accelerate in the future.Upto 83% of retailers aim to include AI in their business processes by 2022-2025. AI has made running an eCommerce enterprise simpler and significantly boosted revenues as well as profits. Today, Artificial Intelligence is indispensable in eCommerce web sites and mobile apps. Did you know that Amazon and Netflix had been early movers in employing AI in their respective online businesses? The results of this strategy are there for all to see.
How AI Is Used in eCommerce
Thanks to AI, business enterprises are able to better predict future business trends and automate tasks usually done by humans. Major benefits of this technology include enhanced user experience, learning more about customers, offer superior shipment services, make suitable product/service recommendations and ramp up company brand value. AI is often leveraged in Big Data processing and features in the top digital marketing tools. In eCommerce, AI is widely used for smart search, voice shopping, targeted marketing and advertising, smart logistics, pricing optimization. customer segmentation and more.
Personalised Customer Approach
This is a leading and popular advantage of employing AI in eCommerce. AI expertly analyses the behaviour of each customer. It is able to identify the popular items, needs and preferences of the customer. This enables the company to offer customer specific offers. Examples include discounts on favourite items, anniversary greetings and suggesting items bought by other customers. AI is able to forecast what different customers desire to see and make a purchase. It is a known and proven fact that a personalised offering has a better chance to succeed than a generic one.
Chatbots and Virtual Assistants
A chatbot is a software with which users can have an online text conversation. Today, human staff are increasingly being replaced by chatbots. The latter allows the company’s customer service staff to concentrate on other types of queries. Chatbots are quicker and less expensive than humans and work 24X7. A compelling statistic is that just two years back a whopping 77% of the most successful enterprises harnessed chatbots to obtain leads in the global marketplace. This important AI component enables automated order placement and more relevant search results to users. It has been observed that companies utilising chatbots have obtained manifold returns on initial investment. A major advantage of chatbots is that unlike human staff there is no waiting period to respond to customers.
Virtual assistants are independent solutions that come with a particular enterprise’s apps. Just like chatbots they offer human-like conversations and respond to requests. But keep in mind they are different from chatbots. An example of a virtual assistant is Amazon’s Alexa.
Enhanced Delivery Options
AI is used to identify the least expensive as well as the shortest delivery route. The item’s weight is calculated and the suitable shipping process is selected. The customer has the freedom to change the delivery schedule. Additionally, there is the convenient facility for customers to easily track respective orders.
Improved Inventory Management
Artificial Intelligence forecasts the annual inventory utilisation and sales based on inventory levels inputs and historical data. So, companies order only in-demand products. AI also gives insight where excess spending is occurring or where the business is retaining inventory beyond necessity. Thus, storage of products for long periods as well as expiry of stored products is avoided.
Product loss because of robbery, mishaps and other reasons can be viewed in real-time and with high precision. The concerned business entity learns that certain products significantly deteriorate if stored for long and hence require more protection. Companies come to know which items are returned by customers more compared to other items. Accurate estimation of labour costs to restock items is realised. As a result, the sales department is better informed enabling it to suggest better offers to existing and potential customers.
Fraud Detection and Risk Mitigation
eCommerce fraud is a major, large and growing menace. It is also getting more sophisticated with time. Failure to address this critical issue can cause major and non-repairable damage in terms of brand reputation and finances. AI does the job better than most other approaches. Client account activities are constantly monitored to detect suspicious changes to email addresses, phone or mobile numbers, passwords, physical addresses and others. AI is superior to humans in terms of observing bigger patterns as well as bigger trends. As a result, it is better at forecasting probable fraud cases.
It is a fact that AI is faster and better than humans in going through all transactions to detect fraud. The AI tools learn as well as adapt from past frauds. Money is saved as there are less incidents of online fraud and less responsibility on human staff. The AI technology used to anticipate and prevent frauds is becoming more sophisticated and more affordable. Usually, the AI tools are more efficient and effective than conventional fraud protection techniques and tools.
Focaloid Provides AI-Enabled Smart Solutions for the eCommerce Industry
Focaloid is a stellar software services and product company catering to clients in the US and UK. We leverage state-of-the-art processes and practices to deliver exceptional results. The company has the necessary expertise and experience in AI & Machine learning technologies. Our pool of talented data scientists and AI programmers are experts at creating and deploying scalable and state-of-the-art AI enabled eCommerce solutions. You can rely on us to meet stringent deadlines, access to transparent processes and achieve tangible results. Focaloid is committed to the highest standards of professionalism and integrity. Contact us to know more about our value proposition.
Conclusion on AI in eCommerce
eCommerce entities need AI to stay relevant in the marketplace. Customers are more likely to choose enterprises which are AI enabled. The technology is a necessity today rather than a luxury. AI makes business fast, safe and convenient. Adopt AI now to give your customers a pleasant, convenient and efficient shopping experience. The money, time and effort invested in including the latest AI tools and techniques are bound to enhance company reputation, attract more visitors, convert leads and significantly boost revenue and profits.