How Can You Reshape Your Traditional E-commerce Business With AI?
In every industry, AI is playing a significant role. The e-commerce industry is not exempted from this digital transformation. It is also gaining momentum with AI technology. Online retailers are using AI for better understanding their client’s needs. AI tools for e-commerce allow digital marketers to offer personalized shopping experience to customers.
AI and Machine Learning (ML) together drive the performance of e-commerce at a greater level. Using ML algorithms, service providers can analyze their customers’ behaviors. Machine learning in e-commerce creates customized deals and provides recommendations for buyers. Thus, AI and ML help to engage clients with more faith.
Market researchers are predicting that AI will dominate the traditional processes in the next couple of years. You wonder that over 85% of customer relations will be engaged by AI virtual assistants, robots, and machines.
However, many e-commerce enterprises have already started implementing AI as their new revenue business source. These companies are better understanding their customer’s behavior. Thus, they are providing enriched online shopping experience and generating sustained leads. As a result, companies those uses AI remain competitive in the industry in the future.
As the number of brands, customers and other factors multiply exponentially, e-commerce businesses are on the cutting edge to advance in the competition. According to a study by Gartner, 80-85% of customer interaction by 2020 will be conducted by Artificial Intelligence. 67% of survey respondents share the same research that AI helps to increase the efficiency of their organization and that Artificial Intelligence is the top 5 investment priority for over 20% of CIOs.
This suggests that e-commerce firms need to serve each consumer with increased, customized personal attention, similar to the attention they receive at retail outlets. In a report on the future of A.I., Accenture A.I. Profit rates in the retail and wholesale industries could increase by 38% by 2035.
Artificial Intelligence uses in e-commerce are enormous. In this article, we explained the most powerful ways of using AI in e-commerce. I hope that this article will be useful for startups and existing retailers who not started their AI program yet. Let’s discuss on how artificial intelligence is used in e-commerce!
Recommended to read: Top 5 Success Stories of AI in e-Commerce Industry
Introduction of Virtual Assistants/ Chatbots
Many businesses are engaging in e-commerce because users are spending much of their time online. Artificial Intelligence helps online retail brands in providing a unique experience to buyers. The online stores should build a strong communication channel to engage their customers. This could be easy for offline retail stores, as the customer and shop assistant can directly communicate in in-store shopping. The customers can select the products, and they may ask about specific products directly to shoppers. But these kinds of perks are limited in online shopping.
E-commerce companies should come up with efficient business strategies to beat this challenge. Hence, this trend has introduced AI virtual assistants or online retail intelligent agents into the e-commerce market.
Many e-commerce leaders like Walmart, Amazon, and Flipkart have major AI projects to provide smart e-commerce services to their millions of customers. They are implementing virtual shopping assistants to provide buyers with the best offers and products. In addition, these virtual assistants are used for improving the mobile shopping experience.
Hence, businesses believe that AI-powered virtual shopping assistants and bots as intelligent digital agents ensure a big transformation in the e-commerce industry.
Intelligent Agent Negotiation Systems
These innovative AI-powered systems are popular in the e-commerce industry. The AI systems are used to connect sellers and buyers, to ease transactions, and to provide standard infrastructure. AI-based agents are fully automated and authorized to perform human-like functions. Since these smart agents generate targets with previous experience, they are very much useful for e-commerce firms.
New Pricing Strategies
Customers are always disappointed with product prices. Hence, retailers need to use the best pricing structures to manage their customers. Here, the innovative Assortment of intelligence comes into the picture. Assortment Intelligence is a set of tools used selling products at an affordable price.
In addition, this assortment solution is used for tracking the inventory and product supply of your rivals. Thus, according to the product demand in the market, you can quote a product price and get maximum benefit on your online sales.
Maintaining the security and privacy of user credentials while doing online shopping is a major challenge for retailers. So, as a retailer, how can you handle this challenge? As a leading AI services & solutions provider, USM Business Systems suggest that AI is the best option to improve security levels.
AI is not only used for improving user experience, customer retention, personalization, and satisfaction, but AI tools are also used for protecting buyer’s information.
Therefore, AI enables online retailers to build a bridge between personalization and security of user’s data. And remember, the more security you provide to customer’s data, the more trust you receive from them.
Wearable Technology Products Captures More Traffic
Nowadays, customers are mostly using their androids and smartphones to browse on the internet. Thus, mobile is the primary source to grab the attention of users than other channels like emails and web.
The wearable technology-enabled products help e-commerce companies to collect the customer’s data when they search for a product. This data is useful for understanding customer preferences and search patterns. Based on the insights into the data, retailers can provide recommendations on desired products to their buyers.
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Recommendation systems are generally called as data filtering systems. They help solve the problem of data overload by filtering necessary information from the data pool according to the customers’ preference, interest, viewed products, past orders, and activities on the eCommerce website. Leading e-commerce businesses like Amazon and Flipkart use the product recommendation engine to refer customers to products/things based on their activity on the e-commerce site and their past orders.
Use Conversational Systems
Investing in conversational AI systems helps e-commerce companies to respond to customers quickly. Speech recognition systems and Natural Language processing systems are becoming popular in the market.
The AI, ML, and deep learning techniques are widely using for developing dialogue systems. These systems can convert speech to text. The conversational systems give an automated and quick response to user’s queries related to products or services. Hence, these AI-powered systems open new opportunities for e-commerce portals to better engage their buyers.
Detects Fake Reviews
Filtering out fake product reviews one of the major challenges that e-commerce companies face today. The purchasing decision of buyers will change with the negative views of a product. Thus, negative reviews affect product sales a lot.
But, finding such fake reviews is not that easy to do manually. Here, Ai can help service providers.
AI machines and tools can filter the verified user reviews and keeps them up-to-date to generate sales.
Prevents Dummy Sales
When you do online shopping, you can see the replica of brand products. Those counterfeit products might be the same in look, but they operate inadequately compared to the original brand.
As an online retailer, how can you fight with dummy products?
AI solutions using ML algorithms can identify fake products and assist retailers in realizing how buyers are searching for their original products.
Any business or brand is influenced by public opinion, which largely affects how people perceive their brand and buy their products. Whether we consider the customer feedback posted on various social media platforms or the product review section on e-commerce websites, e-commerce businesses like Ajio can use AI to streamline and make sense of the feedback file online.
AI and NLP can be used to conduct sentimental analyzes on all reviews and to identify and categorize the views expressed in them and to determine whether any particular review is negative, positive, or neutral. It not only helps companies acquire valuable insights into their offerings but also enables them to meet the expectations of customers.
AI allows search engines to operate exactly like humans. The customers may be frustrated if the products are not matched with their search. To handle this issue, many e-commerce companies are using natural language processing techniques to provide accurate product results to buyers. Thus, AI used to develop customer-centric solutions that ensure profitable business for the long run.
Never Loose Potential Buyers
Improper management of customer data may give negative sales results. Sometimes, your sales team may or may not manage prospects efficiently. This will reduce sales and impacts your financial results.
But, AI can help you to overcome this challenge. Intelligent AI apps improve your sales cycle. However, few businesses are using facial recognition systems to capture the faces of customers who spent more time on a specific product. Based on their interest in a particular product, AI tools can automatically display special offers on their computer screens. This strategy doesn’t let your potential customers go on shuffle.
Intelligent CRM Systems
AI-powered CRM systems are widely adopting in the recent past. This AI-based software brings businesses and potential clients on a single platform. Using NLP and speech recognition, AI systems allow CRM systems to respond to customer issues. These multi-purpose CRM systems will be useful for the efficient management of customers.
CRM software is highly deploying by wide industries. Just have a look at the significant benefits of a CRM solution:
- Keeps track of the potential customer’s data
- Wisely captures customer emails
- Insights into customer data
- Lead retention
- Reduces manual efforts
- Increased lead conversion rate
- Customer satisfaction and personalization
- Marketing ROI will be improves
Finally, ensures increased sales revenues
These are the ways of using artificial intelligence and machine learning in e-commerce. With this, it was clear that smart technologies through smartphone apps or web apps are providing stiff competition for physical retail stores.
USM is a developer of Intelligent Smartphone apps for e-commerce businesses. Talk to our Artificial Intelligence experts today and get guidance to build your e-commerce mobile app!
Now, we will look at the companies that use artificial intelligence:
“Artificial intelligence is touching sky, and machine learning is playing an essential role”
The companies who believe this quote will be in the top position in the future of e-commerce business. I just want to brief you about the list of companies that are heavily investing in AI. Here is my list of companies that are powering and shaping their business with artificial intelligence.
Amazon is one of the major online retailers. It was invested in AI to provide customer-centric services as well as to improve its business processes. ALEXA is the best example of an artificial intelligence product. It is an AI-powered language assistant that helps users listen to music, create shopping lists, get news updates, and more.
With a strategy of acquiring multiple artificial intelligent startups, Apple completely focused on becoming a leading AI company. It believes that artificial intelligence is its future growth driver. This technology conglomerate is attracting the market with its intelligent virtual assistant, SIRI.
Google is also another biggest company that is investing in artificial intelligence. It has been acquiring many AI startups in the past three years. Its intelligent software, TensorFlow, is an open-source software library used in machine learning applications. Main use cases of TensorFlow include:
- Voice/Sound Recognition applications
- Text Based Applications (like language detection)
- Image recognition apps
- To develop apps that analyze time series data
- Video/motion detection applications
The biggest social media platform Facebook is also investing in Artificial Intelligence with the belief that it’ll rule the future. It is moving forward to provide better communication ways to its users through advanced artificial intelligence and machine learning technologies.
Microsoft, Intel, IBM, Nvidia, Qualcomm, Twitter, and many more companies are in AI. We suggest you go through the below link “Top 45 Artificial Intelligence Companies You Must Know” to explore more AI companies.
Recent AI Developments in E-commerce
The size of the e-commerce industry is expected to reach its extrema peak level in the future. Thanks to recent advances AI developments in the e-commerce sector. These digital technologies are helping online retailers in reducing their operational costs while increasing high profits.
As per research studies, the global e-commerce market value is anticipated to reach over USD4.9 trillion by 2021. The figure below depicts the adoption status of Artificial intelligence in diversified e-commerce businesses.
With the help of AI in e-commerce, online retailers can enjoy all the above benefits explained in this article. Use AI solutions, implement intelligence strategies, and build your way of doing digital business in this competitive world.
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