AI in Ecommerce

Leading eCommerce firms are exploring how AI can improve competitiveness and customer satisfaction. Online purchases are now the standard method of buying goods and services. To stay competitive, ecommerce stores need to modernize with the latest technology trends. Advancements in AI help stores increase customer satisfaction and automate business processes.

emarketer will ai transform retail

Gartner Predicts shows improving customer metrics as a major driver of AI in ecommerce. Other areas include improved search, personalization, inventory management, and automation.

Let’s check out the top 10 ways AI will impact Ecommmerce.

1. Decrease Cart Abandonment

AI now helps convert customers that abandon carts. These customers were a few clicks away from completing a purchase. By analyzing customer data, automated emails are sent with personalized content to help make the sale.
AI can also help figure out which customers are more likely to abandon carts. This helps marketers push relevant promotions to those customers, compelling them to purchase.
  • Automated emails

  • Personalized content

  • Lead scoring of customers likely to convert

2. Better Search Results

AI and machine learning improve search results by providing contextualized and personalized search. Through better text analysis and deep learning, results become more relevant and accurate. This means customers always find what they are looking for.
AI and machine learning remember how each user uses search and their preferences. Search functionality and results tailored to the user, improve performance and conversion rate.

3. Voice and Image Search

Voice search is also becoming mainstream. It lets customers search for items without the need for a laptop or phone. AI analyzes voice searches using NLP to figure out what the customer is asking for. More and more homes are equipping voice activated assistants without screens. To reach those customers, ecommerce stores will have to incorporate voice search.

  • Customers can shop without computer or phone

  • NLP helps analyze customer questions

Multivendor marketplaces like eBay are using image search with great success. Shoppers can share a picture of an item via social media, phone pic, or image URL into the eBay search bar. They then get product results that match the image. Powerful AI uses color, shape, and size to determine products that best match the shared image.

  • Shoppers can search by sharing a picture

  • AI matches the image to products for sale

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4. Better Target and Re-target Specific Customers

Marketing automation and AI collect customer data about buying behavior and intent. Stores can then send dynamic ads and automated marketing material so shoppers convert.
AI tracks customer behavior before, during, and after a purchase. It also tracks their preferences, feedback, purchase history, and demographic data. Data is instantly analyzed to find patterns and clusters. This helps sales teams better target clients who will purchase products.
Visitors to ecommerce stores can also be re-targeted anywhere else on the web. This involves tracking users once they leave your site. Stores can then display ads to those visitors on other websites, search engines, and apps. Artificial intelligence helps determine the best locations, times, and content formats to display.

5. Chatbots, Customer Service, and Virtual Shoppers

By 2020, customers will manage 85% of their relationship with the enterprise without interacting with a human.

Gartner Predicts
Artificial intelligence in the form of chatbots improves customer service for ecommerce stores. Chatbots respond instantly and can provide responses tailor made for the specific customer. This leads to a seamless store user experience.
AI crunches all the website’s data, including previous responses and customer feedback. Chatbots attached to shopping carts capture item details, quantities, and shipping terms. By using this collected data, they can provide incentive that will lead to a conversion.
Chatbots use deep learning analyze the gathered information. They extract important concepts such as images and items’ names. The bots then use the data to have useful conversations with shoppers.
  • Provide 24/7 support and instant response

  • AI extracts important concepts from text

  • User data and buying behavior help provide relevant answers

6. Inventory management

Stock exactly what you need using artificial intelligence enabled inventory tools. Ecommerce stores need to always optimize their stock levels. Too much ties up cash and space, and too little can lead to shortages and poor customer experiences.
By analyzing trends and past performance of products, AI provides quantitative forecasts. They can predict whether a store should increase or decrease stock. AI also calculates carrying costs of products for use in data crunching. Seasonal and time trends are also important. They help to determine what products to carry at certain times of year.
  • Stock exactly what you need

  • AI analyzes past performance of products

  • AI provides quantitative forecasts for stock levels

  • Calculate carrying costs

  • Track seasonal trends

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Artificial Intelligence in logistics helps to map out the most efficient delivery routes. This decreases delivery times and increases customer satisfaction and efficiency. Logistics facilities and warehouses use AI to improve processes and times. Robots conduct tasks normally done by a human workers, all controlled by the AI data. This reduces employee overhead by eliminating human positions. Customer satisfaction increases as they receive their products fast and on time.

  • Find the most efficient delivery routes

  • Improve logistics facility and warehouse efficiency

  • Reduce overhead

  • Get products to customers fast

8. Personalization

Every ecommerce shopper has an existing online presence, profile, and purchase history. As they shop, the system gathers more data about their behavior and preferences. AI then crunches this data to provide personalize ads and content that lead the user to convert. Shoppers see the content they want to see, at the right time, in the format they prefer. As the system gathers more and more data about a particular user, it can learn how to better reach them.

9.  Recommendation engines

Recommendation engines use customer data, buying behavior, and brand preferences to recommend products. Netflix uses artificial intelligence to provide a list of movies and TV shows to watch. Recommendations use data from your profile, watch history, and other personal data. Amazon also uses recommendation engines to show you products you may buy. Recommendations for ecommerce include: matching products, products that come together, and bundled products.

  • Recommendation engines suggest products based on online user data

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10.     Localization

Localization let’s any ecommerce store appear local to each visitor. Artificial intelligence collects and analyzes visitor data to determine their location. It then shows ads and other content that are relevant to the customer’s location. This makes it seem personal to the user. AI tracks trends in the data for different locations. It can predict the best content to display, at the right time for each location.

  • Appear local to every international user

  • Show ads and content relevant to the location

  • Track location trends

Future of AI in Ecommerce

AI is here to stay. It will continue to improve ecommerce stores, user interaction, and conversion rates.  With AI advancements, the need for human input into ecommerce sales processes decreases. Ecommerce stores may some day be running themselves. Store owners will enjoy more sales and better customer satisfaction with a tailored AI solution.

Talk to an AI expert today about bringing your ecommerce store into the future.


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