Shopify Ecosystem

11 Applications Of Artificial Intelligence (AI) In eCommerce

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Chatbot, Ai Artificial Intelligence technology, internet virtual assistant on smart phone screen, online customer support website or social media network, information about products or services

With continuous technological advances, there’s more Artificial Intelligence (AI) integration in many aspects of business’s daily operations. More companies are discovering the importance of AI in helping them generate more leads, understand their audience, reduce costs and increase output. Moreover, adopting these solutions into their systems helps increase customer satisfaction.   

The e-commerce industry is at the forefront of adopting machine learning and artificial intelligence. Entrepreneurs could apply such modern solutions to improve their operations and boost their visibility in the digital platform. For instance, the market has some of the best AI marketing tools that business owners can leverage to promote brand awareness and attract more customers. 

With such innovation, businesses can offer more value to their customers by providing their desired products and delivering them on time through reliable means. AI can also enable e-commerce businesses to gain a competitive advantage by incorporating better and increasing customer loyalty.  

Whether you are an eCommerce business owner looking into how your company can benefit from such technological advancement or a consumer wondering how AI can improve your online shopping, this article can be for you. In this post, we’ll explore the various applications of AI in eCommerce. 

Database Management

Incorporating AI with effective database systems can change the way e-commerce operations take place. For example, users can integrate a vector database with AI to analyze and process data sets, further utilized for e-commerce decisions and transactions. Open source vector database systems are also available for enterprises to use, and they can choose to utilize them to track sales transactions, incoming revenue, cancellations, discounts, inventory, and more. These are multidimensional and highly reliable database systems, and along with AI, there will be better ways to boost current capabilities.

Applications of AI in eCommerce For Business Owners 

Adopting AI can make your business operations more efficient with the following applications: 

1. Chatbots To Answer Customer Query  

Most renowned e-commerce businesses have chatbots on their website to make the customer experience worthwhile. With chatbots in place, once consumers visit an eCommerce website, they’ll be greeted with a pop-up question on the screen asking, ‘how can I help?’. They can then use this feature to ask relevant questions and get immediate responses courtesy of the AI-programmed system. 

Utilizing this tool can go a long way in ensuring your customers are attended to 24/7, even when there aren’t live agents present to answer queries. This can come in handy since a buyer’s decision to purchase a product or avail themselves of a service might be affected by the time they wait for responses. Some prefer instant answers to their queries to help them decide whether to order a good or not. 

2. Generation Of Product Descriptions  

Product descriptions give customers more information about the product and why they’re worth buying. A well-written one is critical to your business as it can act as a shop assistant for your customers. It can confirm whether the features of the product they intend to purchase match what they’re looking for.  

AI has made this task simple for business owners. Such a solution enables eCommerce businesses to generate unique and dynamic product descriptions automatically and within a short period. This is less time-consuming and more efficient, unlike the conventional way of writing a compelling product description, which can take a while. 

 3. Handling And Processing Of Business Data  

Apart from the many products that e-commerce websites sell, they also have to deal with and organize a lot of data daily. This includes managing your product database and information such as:  

  • The total sales per day  
  • Purchases  
  • Inventory level 
  • Goods returned  
  • Customer information and purchasing patterns 
  • The total number of orders  
  • The number of successful deliveries  

Manually monitoring and assessing these data can be tedious and not to mention prone to human errors, and that’s where artificial intelligence comes into play. Aside from collecting and arranging records in an organized and structured format, AI can also make it more insightful.    

This makes it easier for business owners to understand how their company is performing, allowing them to make the necessary decisions for areas that need improvement. Such insight could also give them an in-depth overview of the customer purchasing patterns, enabling them to create personalized recommendations for each user.  

4. Privacy and Cybersecurity  

The eCommerce industry involves buying and selling goods, with transactions occurring online. While convenient, this can also attract hackers and cybercriminals. When this happens, sensitive personal information of your customers could be stolen and leaked, which can put them at risk. This could also stain the reputation of your online business and hurt your success. 

eCommerce business owners can use artificial intelligence to enhance the cybersecurity of their websites. With AI, a website can quickly tell if there’s any fraudulent activity happening and prevent data breaches that could compromise business and customer data. But aside from that, AI could also aid in ensuring websites and apps are well encrypted and secure to enable customers to make online payments safely. 

5. Sales Forecasting 

eCommerce businesses can predict and generate accurate forecasting of future sales and market trends using AI. This is possible through the use of:  

  • Data analysis  
  • Studying previous and current e-commerce trends  
  • Looking at historical data  

Such an analysis can equip business owners with the data they need to boost their operations. It can also give them insights, allowing them to maximize the allocation of resources to different segments in the company to help it thrive and drive an increase in sales and revenue volume. 

6. After Sale Support  

Apart from selling quality products and ensuring a smooth buying process, artificial intelligence has also enabled eCommerce businesses to provide efficient after-sale services to their customers. Thus, after a customer makes a purchase, they can:  

  • Access an automatic form where they can write feedback and comments 
  • Ask for directives on how to use a product  
  • Request for replacement if they find that the item they bought has defects  
  • Get goods delivered to their doorstep  

The more the eCommerce business is concerned with the well-being of its buyers, the more it can increase their loyalty, which can translate to more sales. 

7. Filter Forged And Fake Reviews  

If an eCommerce website has many negative comments, this can scare the customer away. There are occasions in which people with ill motives forge these reviews to make the business lose its customers, reduce its sales volume, and operate at a loss.    

And since the customer may not know or deal with the seller directly when purchasing a product online, there’s a high likelihood that they’ll believe any comment on the reviews plus the ratings.   

Artificial Intelligence, fortunately, has a feature to help tackle or handle any fake reviews that’ll negatively influence the customer’s decision to buy. It can detect fake identifications and help e-commerce businesses remove them from their websites. Ultimately, only genuine and legit comments from real customers will remain on the e-commerce site. 

Applications of AI in eCommerce For Customers 

The benefits of AI in eCommerce do not just help business owners run their online business more efficiently since it can also enhance the consumer’s overall experience through the following applications:  

1. Voice Search  

In today’s modern era, voice assistants have become popular. People can use their voice to ask for relevant information on the internet, schedule a meeting and even ask for the location of different places.  

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Confident freelancer African American man speak activate virtual digital voice assistant on smartphone while write notes at home. Black man ask mobile phone ai assistant to search information online.

And so, a voice assistant can be helpful in eCommerce shopping because you can quickly place your orders using your voice. You’ll spend less time adding items to your online cart, making the online shopping experience more convenient. 

2. Giving Recommendations  

Artificial intelligence can also be used to recommend products that you should buy. For instance, if you’re searching for a particular item on an eCommerce website, you’ll be able to see other similar items to what you’re looking for. 

The algorithm that AI uses can be able to predict your needs and behavior as a buyer based on:   

  • The items that you frequently buy  
  • Your search history   

This enables the system to make predictions and suggest personalized recommendations for a product you may be interested in, making it easier for you to order and purchase. In this regard, you won’t have to spend hours searching the website for the product.  

3. Image Searching and Recognition  

Have you ever had a picture of an item you’d like to purchase but don’t know its name or which brand it is from? You need not worry. Artificial intelligence has made things more manageable through a feature called the image search option. 

With this, you only need to copy and paste the image on the search bar to get results. The feature that makes this possible is the image recognition software. It can identify if there are any similar images on the internet and specific eCommerce website to the photo you’ve searched for. Therefore, you don’t have to go through the hassle of knowing and using keyword searches.    

4. Augmented and Virtual Reality  

eCommerce websites use AR and VR AI features that can help customers get the illusion of purchasing products from a literal brick-and-mortar store. This virtual experience can help you go through seamless shopping by enabling you to try the product online.   

This is perhaps one of the most outstanding attributes of eCommerce apps on mobile. The reason is that it uses 3D presentations. Therefore, you can search for a product, customize its size and color, and check how it’d fit in your home virtually or look worn if you’re shopping for clothes and shoes. 

Conclusion  

Artificial intelligence has indeed proven its value in almost all areas of our lives. They can make life easier and enhance the efficiency and productivity of companies. 

For business owners, some applications of artificial intelligence in eCommerce include chatbots, providing quality resale services, doing away with fake comments and reviews, cybersecurity, and generating customer-tailored product descriptions. On the other hand, their overall online shopping experience can be enhanced. 

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