Undoubtedly, the eCommerce industry is growing at a fast pace! According to Statista, in 2017, it reached around $2.3 trillion and is expected to hit $4.5 trillion in 2021. In the US alone, eCommerce represents almost 10% of the retail sales — a figure that is growing by nearly 15% each year.
With such a huge growth in the eCommerce businesses, competition among companies now has become more fierce than ever before. To sustain in the disruptive business space, companies these days are looking for ways to enhance their online presence to allure more users to their e-store. Artificial Intelligence is one of them!
More than 60% of businesses used AI tools in some form in 2017, a significant increase from 38% in 2016 and 77% of these say they use AI to improve their marketing and sales processes.
Today, we see advanced AI techniques being used in all major industry verticals including eCommerce too. The use of AI in eCommerce has made shopping an enjoyable experience for all. We can clearly see that using AI in eCommerce enhances the overall buying experience for the customers.
Uses of AI in eCommerce!
With the advent of online stores for shopping, businesses all over the world want a technology that can create an amazing shopping experience for their e-customers and compels them in staying hooked to its services. Here in this blog, I have discussed how the advent of Artificial Intelligence has revolutionized the eCommerce industry. Let’s read further to know more on the role of Artificial Intelligence in eCommerce.
Artificial intelligence comprises these 3 key elements that include Data Mining, NLP, and ML. These elements help e-commerce businesses improve results. By using AI algorithms, companies can automate mundane repetitive tasks. This helps the users to concentrate on more meaningful tasks. Let’s read how.
Virtual Personal Assistant!
While discussing the role of Artificial Intelligence in eCommerce, talking on Virtual Personal Assistants can not be missed. Driven by Artificial Intelligence, Virtual Personal Assistance is a software agent that performs tasks or services based on voice commands.
The use of a virtual personal assistant (VPA) is rated as the most impactful AI tool by 31 percent of business executives, says a report. VPA makes use of NLP (Natural Language Processing) to understand human speech and respond accordingly.
It uses AI algorithms to analyze customer patterns and render suitable shopping recommendations tailored to their interests and likes. Virtual Personal Assistant is very beneficial as it acts as a time-saver for executives and as a tool for customers.
24% of online shoppers in the U.S. use voice-activated devices such as Amazon Echo and Google Home as part of their shopping path-to-purchase that roughly correlates to about 50 million U.S. adults. All thanks to the use of AI in eCommerce!
Experts predict that Artificial Intelligence and eCommerce is a deadly combination that is going to revolutionize the entire business world. You can expect companies using AI techniques for predictive marketing. Let’s read more on this. The use of AI in eCommerce allows businesses to analyze customer behaviour through Machine Learning tools and AI-driven algorithms. Based on this information, the users can optimize their eCommerce sites to allure the targeted audience.
After analyzing consumer data, AI algorithms allow companies to gain insights into customer likes and interests. Thus, by rendering meaningful analysis of the customer behaviour, Artificial Intelligence helps in predictive marketing.
In fact, McKinsey predicts AI could unlock up to $2.6 trillion in business value in marketing and sales.
This is how the role of AI in eCommerce is very significant as it lets companies update information related to the latest customer patterns. Experts and strategists use advanced marketing schemes to increase customer engagement. You can hire an AI developer to incorporate advanced AI techniques in your projects.
[Read: The Top 10 Artificial Intelligence Trends Everyone Should Be Watching In 2020]
Chatbots for improved Customer Service!
AI-enabled chatbots have become an important tool for rendering improved customer service to customers. Chatbots have gained immense popularity among businesses as it provide
By next year (2020), 80% of all customer interactions will be handled by AI- driven Chatbots.
Chatbots have now become an important tool to render an improved customer service. They are in great demand as they are comparatively cheaper and more efficient to use.67% of consumers have used a chatbot for customer service in the last year.
This remains a tried and tested AI tool based on NLP and ML techniques. Chatbots can be added to shopping carts, online support, and order processes.
Targeting Potential Customers!
A lot has been discussed on Artificial Intelligence and eCommerce. With the use of Artificial Intelligence algorithms, businesses are able to identify potential customers.AI techniques such as facial recognition and predictive tools allow businesses gain more insights into the needs of their customers.
By using this information, companies render product suggestions to target their online customers. Thus, using the advanced techniques of AI in eCommerce, businesses can boost their sales through lead generation by targeting potential customers.
Artificial Intelligence and eCommerce help in increasing business revenue. Warehouse operations play an important role in the success of any business. By employing AI- driven drones and robots, big enterprises can fasten their warehousing activities such as parcel sorting, packaging, and categorizing. It can help improve the speed and efficiency of the sorting mechanisms and the delivery schedule for the products.
By now, I am pretty sure that you have a clear idea of the use of AI in eCommerce. Artificial intelligence in eCommerce has become a trend now! eCommerce industries across the globe are adopting AI techniques to enhance business growth. The adoption of AI is expected to increase in the coming days.
Current e-commerce statistics state that 40 percent of worldwide internet users have bought products or goods online via desktop, mobile, tablet or other online devices. This amounts to more than 1 billion online buyers and is projected to continuously grow, says Statista.
Now, let’s go over some interesting data from a recent report,
-1 out of 5 consumers is willing to purchase goods from a chatbot.
-40% of consumers use chatbots to look for offers and deals.
-Google invested £400 million acquiring DeepMind, an Artificial intelligence company.