How Artificial Intelligence is Used in E-Commerce Websites

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How Artificial Intelligence is Used in E-Commerce Websites

Artificial intelligence or just AI simply refers to intelligence exhibited by machines and the algorithms that form the basis of such intelligence, as opposed to human intelligence. This technology has grown in recent years and has taken prominence in various industries, including aviation, robotics, banking, and even the e-commerce sector.

This technology has also been predicted to experience exponential growth in years to come, with major companies like Google and Facebook investing in the technology, thus making the future of AI in e-commerce very bright. As already stated, the e-commerce industry is not left out in the prominence of this technology.

Many businesses are already using this technology to create better customer experiences and generate new leads for the business. In addition, a recent study has also predicted a takeover of customer interactions by this technology. Below are some ways AI is being employed by e-commerce businesses for better business operations.

Applications of AI in E-Commerce

1. Creating a Customer-Centric Search

AI is employed in e-commerce search engines to make them produce results that are relevant and according to the way humans think. This is achieved with a natural language processing that narrows, contextualizes, and improves the online shopping experience by displaying an improved search result.

Furthermore, AI enables the development of apps that can be used for visual search and provide a better customer-centric experience through video recognition and advanced image. The technology allows online shoppers to search for products using images or video by automatically tagging, organizing, and visually searching such content. You can also teach AI to understand concepts such as logos, products, or aesthetics using bespoke models.

These models allow online shoppers to search for various products using visual similarity or keyword tags. In addition, AI helps online shoppers find products they desire and match complementary products by using visual cues from uploaded imagery. Thus, giving businesses a competitive edge. An example of businesses that employ AI in creating an improved search for online shoppers is Pinterest, through their Chrome extension that allows shoppers to search for similar items from online photographs.

2. Targeting Potential Customers

Businesses can leverage customer information collected through various means to create an improved customer experience and enhance the business sales cycle. One way of collecting customer information is with the use of artificial intelligence. This technology allows businesses to utilize customer data collected from e-commerce websites to improve customer experience and create returning customers, thus improving sales.

One way it achieves this is by using facial recognition systems to detect a customer’s product of interest by noting the amount of time spent close to a particular product of interest in a physical store. You can then use this information to create special offers on customer screens, displaying these products of interest to customers and remarketing them to them.

3. Chatbots and Virtual Assistants

A good shopping experience is enhanced by having an assistant that can take you through the shopping experience and help you find products easier. This help is often provided by store assistants or online customer service representatives, providing support and improved customer experiences to customers.

However, with the invention of e-commerce intelligence, this technology has replaced the need for physical or online customer service representatives, thus providing them with immediate assistance. One-way businesses achieve this is through chatbots and virtual assistants. These services ensure round-the-clock support to customers.

These bots utilize natural language processing (NLP) to interpret voice interactions with online shoppers and provide them with personalized offers. Also, these bots have self-learning ability that enables them to adapt and better address customer needs.

4. Inventory Management

Artificial intelligence has also been put to great use in the area of inventory management. Storage of all the required goods or inventory can be cost-demanding and require a lot of space. As such, businesses need to accurately plan and predict customer demands to prioritize and stock just the products they need at a particular time.

This technology has been employed by businesses to create a more personalized customer experience, increase analytical insights, and increase competitiveness. Artificial intelligence uses predictive analysis to predict market demand, thereby accurately predicting the inventory you need at a particular time and the number of such products you need, thus satisfying customer needs.

The poor market analysis would result in not having the goods in demand by customers during a particular period, resulting in poor customer experience and satisfaction. Thus, AI helps to improve customer experience in this regard.

Other applications of artificial intelligence in e-commerce include:

  • Product recommendations
  • Fighting fake reviews
  • Cybersecurity enhancement
  • Identifying exceptional target prospects
  • Pricing optimization
  • Enhanced customer service
  • Customer segmentation
  • Smart logistics
  • Creating a more efficient sales process, etc.

Benefits of AI in E-commerce

One cannot overemphasize the importance of AI in the e-commerce industry. This technology has been employed in various areas of the industry to bring about unprecedented results in the customer shopping experience. Some of the benefits of this technology to the e-commerce industry include:

1. More Targeted Marketing and Advertising

AI technology enables the implementation of personalization techniques for customizing user content. This also makes you stand out from your competitors by creating a platform that allows you to have one-on-one communications with your customers. This personalization technique keeps you informed of what your customers want so that you can deliver messages that best suit their needs.

2. Increased Customer Retention

One of what you can achieve with targeted marketing and personalized messages is the retention of customers. Personalization strategies by e-commerce businesses help build better customer data and grant insights into customers, thus increasing business revenue and retaining customers. Personalization techniques using AI will provide better ROI than traditional marketing methods.

Efficient Sales Process

Ai helps you gather information about your customers, automate follow-up of abandoned cart inquiries, etc. This will help you create a better and more efficient sales process that improves customer experience and generates more revenue for your company. One way you can use to achieve a more efficient sales process using AI is with the use of chatbots.

Other benefits of AI technology in e-commerce businesses include:

  • Improve product selection and user experience
  • Optimize logistics
  • Seamless automation, etc.

In conclusion, artificial intelligence has brought about a lot of development in various industries, and the e-commerce industry is not left out. Artificial intelligence has contributed to the improvement and optimization of various e-commerce operations.

Ranging from optimized marketing processes to improved sales strategies to inventory management, these are some ways you can employ artificial intelligence to grow your e-commerce business. So, whether you’re a shipping company in UAE or a retail store, AI can help take your business to the next level.

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