How AI is changing the future of eCommerce
Almost everybody has some sort of interaction with artificial intelligence every day. From using face recognition to unlock your phone to asking Alexa to play your favourite song, there are many ways to use voice assistants. So, most people already use artificial intelligence (AI) and enjoy its benefits every day, whether they know it or not. Since so many people don’t really know what artificial intelligence is, it shouldn’t come as a surprise that most people don’t see its potential. But the eCommerce industry is one place where artificial intelligence is getting the attention it deserves.
Why AI is needed in eCommerce
In the last few years, the eCommerce business has changed at a rate that has never been seen before. In the two years after the pandemic started, Americans spent a staggering $1.7 trillion shopping online. This means that people are spending 55% more money online.
During the pandemic, eCommerce was one of the few industries that performed successfully. Yet, it is expected that online stores will continue to earn more than they did previously to the pandemic, even after retail stores have reopened. This year, online retailers in the United States are predicted to spend $1 trillion.
As the market appears to be thriving, it is tempting to believe that eCommerce stores may not want more assistance to generate revenue. Even though there appear to be many online shoppers willing to spend money, there is intense rivalry for their business.
According to Internet Retailing, the number of new eCommerce enterprises increased considerably within the first four months following Covid’s shutdown. There are around 85,000 firms with online storefronts or online marketplace presence. This indicates that competition among internet vendors is intense.
Online shops have to work hard to get the attention of potential customers if they want to stand out from the crowd. To get people’s attention, they need the right tools to do this. Advertising campaigns are one way to get people’s attention, but artificial intelligence gives us a lot more ways to do it.
AI is changing the eCommerce business in four ways
AI is now used in almost every field, including e-commerce. AI is having an effect on e-commerce and doesn’t need an official introduction.
So many articles talk about how Artificial Intelligence has grown in almost every possible direction and is being tested all the time.
Today, we’ll talk about its impact on e-commerce and the benefits of AI development services.
AI has been helping with e-commerce for a long time, and its functions are being improved all the time to make them more accurate and give better results.
In eCommerce, AI can be used in a lot of different ways. Some of the most important ones are:
- Chatbots and Virtual assistance
- Omnipresent customization
- Email Automation
- AI-driven predictive analytics models & lead scoring
Advantages of using AI in eCommerce companies
Amazon has known for a long time that artificial intelligence and other related technologies are useful. Machine learning is used by the world’s largest e-commerce company to improve product selection, user experience, and logistics.
In a recent report from McKinsey & Company and the Retail Industry Leaders Association, they listed seven “imperatives” for rethinking retail in 2021. Each one could be helped in some way by AI-based technology.
1. More targeted marketing and advertising
2. More customers stayed with us
3. Seamless automation
4. Efficient sales process
AI Use Cases in E-commerce
AI has a lot of uses in e-commerce, and you’re probably already familiar with a lot of them. You might not know, though, that the technology they’re built on is related to AI. Here are the six most common ones:
- Personalised suggestions for products.
- Getting the prices right.
- Customer service has been improved.
- Putting customers in groups.
- Smart transportation.
- Trying to guess sales and demand.
How to Use Artificial Intelligence in E-Commerce
It’s always tempting to jump into something new and exciting. But before you start a new program, you should make sure you have a plan so you don’t waste a lot of time and money on false starts.
1. Develop a strategy.
You have to start somewhere, and your strategy will show you how to get to your AI goal from there. Don’t just pass this off to a new AI expert you hired or your CIO or CTO.
2. Find narrow use cases that fit with the company’s overall strategy.
The most successful ways to use AI are those that combine business goals, different kinds of data, and AI models that are easy to find. All of this means that you should focus on ways to make money where you have an advantage in data and where proven AI technology is a good fit.
3. Use the understanding of others.
Even if you think you know a lot about artificial intelligence (AI), you’ll need help with this. Bring in a tiger team on a project or part-time basis to help you dig in and build a strategic AI roadmap. These third parties can also help your MVP (minimum viable product) come to life.
4. Build a full-scale solution
Once you’re happy with what your team has made, it’s time to build a full-scale solution. Don’t be surprised if you have to try it a few times before it works the way you want. As you and your team become more comfortable working with AI, the projects you put in place will start to help you more.
Finishing Up
Tomorrow’s AI sounds like something out of a sci-fi film, yet today’s AI technology is already improving customer experience, boosting conversion rates, and facilitating the streamlining of corporate operations.
If you want to provide the finest shopping experience possible on your e-commerce website, investigate the many advantages of artificial intelligence and machine learning. It can help you make better use of your customer and business data in order to formulate a viable plan for the future.
This article was originally published on the Cyber Hub Intelligence blog
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