AI in eCommerce – Artificial intelligence benefits – SyncSpider

AI in eCommerce? Yes or no? Can artificial intelligence (AI) benefit eCommerce? Is it a myth, or can it truly boost your business? Hmm, consider artificial intelligence as a new industrial revolution. If you lived in the 1760s, would you ignore the changes or immediately hop on a boat? And what do you think, who did better: the early adopters or the doubting Thomases?

Let’s face it; changes are all around us. And you know better. The history of automation showed us how it goes. Every time a trend in the market changes, you must hurry to keep up with it. Otherwise, you become a dinosaur (and we all know what happened to them!)

I know it can sometimes be overwhelming. So many tools, software solutions, and apps that you can use… Which one to choose? On top of that, the competitors are popping out like mushrooms, which makes everything even more challenging.

Artificial Intelligence in eCommerce: Benefits, Statistics, and Examples

How can artificial intelligence help you in your eCommerce business? Are there any stats that could back up these thoughts? And how about some examples? Yeah, all that, but first, a bit of clarification.

What is AI, and how long has it been a part of our lives?

AI is not new; it didn’t emerge yesterday! The term was coined way back in the 1950s, addressing the ability of machines to perform specific tasks that required human or animal intelligence.

So, let’s see what the timeline of artificial intelligence development looks like.

As you know, today, artificial intelligence is used in many applications, from self-driving cars to personalized marketing strategies. The benefits of artificial intelligence are so tangible that it’s almost impossible to imagine running an online business (b2b, b2c, or c2c) without it being implemented in at least one segment.  Artificial intelligence isn’t something you should be afraid of, but something you should consider as an ally.

eCommerce AI: What Business Processes Can You Improve With AI?

According to statista.com, 87% of global business organizations believe implementing AI will provide them a competitive edge. Let’s see what business processes you can improve with AI if you’re among them.

AI Help with Personalization in eCommerce Industry

What do we use personalization for, and why is it so important? Let’s start with the fact that you need to know what your customers like and their preferences to be able to re-sell them something.

And the best personalization example is the recommendation system.

As you might have read above, Amazon’s recommendation system was one of the first implemented AI in eCommerce. It proved to be a powerful tool for boosting sales. But what is it, and how it works?

An online recommendation system uses algorithms, data analysis, and artificial intelligence (AI) to provide personalized recommendations to users.

It analyzes user behavior and preferences data and, based on that, creates personalized recommendations for products, services, or content. The whole process consists of several phases:

According to McKinsey, 35% of all Amazon purchases are driven by their recommendation systems.

Site Search with an AI Help

From Google to Instagram, Pinterest, and all other social media, they all use AI algorithms to improve the user experience and provide relevant content. And you know what? The same goes for eCommerce, especially if you own a multivendor marketplace.

How does that work?

It is well known that displaying search based only on the keyword is not enough anymore. This search could be more reliable since it often needs to show more relevant content. And that’s where AI comes into the scene.

AI site search uses machine learning algorithms to analyze user behavior, search patterns, and content on the website better to understand the intent behind the user’s query and provide more relevant search results.

Therefore, AI site search improves the user experience by providing more accurate and personalized search results, increasing engagement, conversions, and customer satisfaction.

AI Use & Forecasting

Forecasting was always a part of the business. Any business, including eCommerce. Now, the thing is that previously, people used methods, including statistics and expert analytics, to predict how the market would behave. But over the years and with the constant development of artificial intelligence, Artificial intelligence forecasting has become increasingly used.

The advantage of AI forecasting compared to humans is that it takes a more data-driven approach. It uses advanced algorithms to identify patterns, trends, and anomalies in large data sets that might be difficult for humans to detect.

When it comes to eCommerce business, we have to agree that forecasting and planning play a significant role, especially with the following:

Better Marketing – AI-Driven eCommerce Advertising

Yes, you probably know all about it. Marketing is a business segment that successfully uses AI and is widely accepted.

If we talk about AI in eCommerce, it can improve performance and increase sales through the following:

AI in eCommerce: Need Help With Pricing?

Gone are the days when you had to check everything manually daily. It required a lot of effort, time, and workforce. Not to mention the data were not always delivered on time. Today we have AI-based software solutions that keep an eye on everything and inform you how to adjust your pricing to stay competitive.

How do these software solutions work? Well, there are several ways.

AI-Driven Customer Service

When it comes to customer service, you all know the drill. It’s essential to have support available 24/7 because your customers come worldwide. The Internet doesn’t recognize time zones or working hours. The products or services are available for purchase non-stop. And if the customer has a question and you don’t answer in time, they can reach your competitors.

Of course, you can hire people all around the globe to cover the time zones, but it could be more convenient and economical. And guess who offers the solution? Yeap, artificial intelligence!

AI got your back through a wide range of tools, such as virtual assistants, chatbots, and voice assistants.

Not only that artificial intelligence is available non-stop, but it also tailors its responses to create personalized and fast solutions for those who reach out for advice or help.

A happy customer equals more sales!

AI for eCommerce: How Can It Help Your Sales Team?

I don’t want to sound too rough, but if we’re honest, we have to admit that everything boils down to sales. No sales, no business. And that’s probably why this is the most exciting part for eCommerce businesses (in fact, all businesses). How can artificial intelligence help you to boost your sales?

Artificial intelligence can improve several sales-related segments and help your sales team achieve better results.

Use AI as the Guardian of Your Business: Fraud Prevention

It’s pretty tricky to detect fraud in the eCommerce world, especially if we consider that there are, on average, over 11.5 billion US dollars in eCommerce sales per day worldwide (according to statista.com 2020). It’s like looking for a needle in a haystack… at least for humans.

But luckily, we have artificial intelligence to cover that segment.

As an eCommerce business, you need to protect yourself and online shoppers. What artificial intelligence does is analyze a massive amount of data and identify patterns. And every time the purchase steps out of practice, it warns and marks it as suspicious.

It can also successfully prevent fraudulent account creation and fraudulent chargebacks.

Use Artificial Intelligence for Product Assortments & AI

If you want to optimize your product assortment, there’s no faster way to do it than by using artificial intelligence.

It can help you improve your product assortment through demand forecasting, personalized recommendation, competitive and trend analysis, and inventory management, which can improve the shopping experience.

Delivery Improvement – AI Role

Artificial intelligence improvements in the delivery segment are not something new. All successful and most prominent eCommerce platforms use it. And somehow, customers got used to having it.

What does it do? It can show the shortest route, enabling customers to track the package, predict the delivery time, and even calculate the delivery cost based on distance, delivery time, and other factors.

Now, what’s new in this area is drone delivery. AI-driven drones can deliver packages no matter the distance and high traffic.

5 AI Tools for eCommerce Companies

Okay, here are the 5 AI solution tools that might help you do your eCommerce business more efficiently.

Using Artificial Intelligence in eCommerce: What’s Next?

What’s next? Well, that’s a million-dollar question. But I can assure you that the AI era has begun. It made a significant impact on business processes regardless of the industry. And the sooner you realize it and start using and connecting the tools, your business will have more chance for success.

Frequently asked questions

What are the examples of using AI in eCommerce applications?

Artificial intelligence is widely used in eCommerce, and one of the beneficial artificial intelligence tools is image searching and recognition. These AI models recognize the image a customer tries to find on the website and display similar (or the same) items.

Why AI is the future of eCommerce?

First of all, the advantages of artificial intelligence can not be denied. From the user’s and business owner’s perspectives, artificial intelligence has already provided solutions for eCommerce that benefit both sides. And it can only continue to scale even faster and more progressively. There’s no going in reverse. The last industrial revolution didn’t stop; it continued to grow and expand, and we can expect the same from this one. And I bet the future of eCommerce will be twined with AI-based technology.

How AI is changing the future of eCommerce?

The eCommerce industry changed purchasing habits at one point. Buyers started shifting from brick-and-mortar stores to online platforms. The process has been further accelerated by integrating AI solutions into eCommerce businesses, leading to optimizing operations, improving the customer experience, and increasing revenue, changing the eCommerce landscape we know today.

What is the benefit of AI in eCommerce?

Artificial intelligence can improve nearly all business processes, streamlining the buying process and ultimately increasing revenue. Providing an environment where customers can easily understand products, visually engage with them, and receive necessary support is crucial to improving overall business results for eCommerce stores.

How does AI generate personalized product recommendations?

AI generates personalized product recommendations by analyzing vast customer data, such as purchase history, browsing behavior, and search queries. The process encompasses data collection, processing, recommendation generation, and presentation.

What are AI benefits for Shopify store owners?

Artificial intelligence can benefit your eCommerce business, regardless of your platform, whether you’re an online retailer or a small online shop owner. So, many Shopify store owners are turning to artificial intelligence to improve their business processes. It is always related to personalization, product recommendation, inventory forecasting, improving logistics, and driving better conversion. One of the latest AI innovations at Shopify is  AI-generated Product Descriptions powered by Shopify Magic. It enables easy and “on-click” descriptions for Shopify store products.

SyncSpider is the app-2-app integration tool built for eCommerce.

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