E-commerce has evolved in the last few years and has gone beyond traditional “Commerce” – the plain buying and selling using the internet. The Ecommerce Industry is focusing on User Experience, Customer Satisfaction, Fulfillment and Customer Satisfaction.

This new-age smart and intelligent commerce will be impacted significantly by Artificial Intelligence. Gartner predicts that by 2023, the majority of organizations using AI for digital commerce will achieve at least a 25% improvement in customer satisfaction, revenue or cost reduction.

What is Artificial Intelligence?

Artificial Intelligence is the ability of a machine to learn and imitate the cognitive thinking and problem-solving capabilities of humans. According to Digital Commerce 360, there are three important components of Artificial Intelligence that the Ecommerce industry needs to utilize-

Artificial Intelligence in Ecommerce

Data Mining: Identifying meaningful and repetitive patterns in humungous large data sets that can be converted into actionable insights.

Natural Language Processing (NLP): Processes undertaken by computers and software to understand human languages and sentiments behind their words.

Machine Learning: Enhances the search results of the customers by analyzing their personal preferences and purchase history.

There are many other ways in which Artificial Intelligence has a profound impact on Digital Commerce. This includes product recommendation, content personalization, fraud detection, price optimization, virtual assistant, image search, and customer segmentation. Read the blog to know more about the profound impact Artificial Intelligence will have on the E-commerce Industry in the year 2020-

  1. Chatbots and Personal Assistants- Chatbots are rampantly being used for customer service automation across industries and sectors. They are powered by AI and Natural Language Processing and can address varied queries of numerous users, simultaneously and instantly. They provide 24×7 support; irrespective of the time zone and are quite economical than having customer care executives onboard.

AI-powered chatbots can help your Ecommerce website in facilitating interaction with customers, answer their queries or notify them about offers/ order status, request feedback, as well as learn from human behavior.

  1. Personalization – AI-powered personalization furnishes a relevant and individualized experience to your Ecommerce users. It enables your Eommerce website to learn and imbibe what a particular user is looking for, and offer suitable product recommendations. This, in turn, results in higher conversions and enhanced engagement from your customers. An effective amalgamation of Artificial Intelligence with your personalization software can help you customize the landing/product page, search, product recommendation, banners and offers as per your user’s preference and purchase history.

 This would lead to

  1. Intelligent product recommendations
  2. Custom and automated email marketing messages
  3. Tracking the performance of the software tool
  4. Suitable campaign banners to match the user’s discrimination and intent

Facilitating AI in personalization will provide greater customer retention and better loyalty and satisfaction.

For Example  – Amazon leverages machine learning for recommending suitable products to its users. They have invested a lot of time and resources to build a colossal database of their customer’s buying behavior and use a combination of Collaborative Filtering and Next-in-Sequence to recommend the products that may interest the customers.

  1. Visual Search- People who say money can’t buy happiness do not know where to shop! Ever spotted someone wearing a shirt or a pair of shoes that instantly appealed to you? Those days are passé when you would try and guess the brand or make of the products, till you find the one that caught your fancy. All you need to do now is take a picture and the image search will help you find the best matches for the products you are coveting.

Visual Search, powered by AI would enable your eCommerce solution to take visual cues from your user. It would apply metadata to the AI-powered visual search system and help it identify and fetch relevant results of the same color and composition. The Visual Search technology is facilitated by 360-degree video, 2D and 3D configuration, augmented reality (AR), and virtual reality (VR).

  1. Voice Commerce or Conversational Commerce – comScore predicts that estimate that .2 trillion searches will be done by voice by the year 2020. Voice commerce facilitates customers to make purchases using AI-enabled Digital Assistants like Alexa, Siri, and Google Home. The users who leverage the voice command technology can search for information and make purchases simply by speaking the request near an enabled device.

  Reference Blog – How to Optimize your Website for Voice Search?

Reference Blog – Why To Enable Your Website For Voice Search?

  1. Inventory Management – Artificial Intelligence facilitates automated inventory monitoring where the system tracks the products in real time, thereby reducing manual errors.

Artificial Intelligence also helps in providing personalized product recommendations to users. This enables the Inventory management system to procure the products accordingly. It also decreases any forecasting errors! The AI-powered Inventory Management system makes predictions with real-time data and ensures the availability of the stock based on its algorithms. An AI-powered inventory management system will help you deliver enhanced customer service quality.

About SynergyTop

SynergyTop is a digital commerce company with expertise in creating simple, yet powerful E-commerce, web, and mobile solutions for its global clients.

We can help you harness the immense potential of AI technologies for your Ecommerce business. Write to us at contact@synergytop.com for a free consultation.