11 Incredible Ways AI is Redefining The eCommerce Industry

Online shopping has become dominant in retail, and online merchants must upgrade themselves to stay in business. They have realized that transformation is essential to survive the fierce competition. As a result, the demand for the service by an ecommerce web development company is also rising.

Considering the fast-paced growth of the eCommerce industry, online retailers need to adopt new ways to enhance their customers’ shopping experiences. And customers are all that you need to grow!

In recent years, Artificial Intelligence (AI) has embedded itself into our every facet of lives. From self-driving cars to smart assistants, AI is now everywhere.

The eCommerce sector is also not staying behind when it comes to AI. After giant tech firms Google and Microsoft, the eCommerce sector invests huge amounts of money in AI solutions. In this article, we will explore the impeccable benefits of AI in eCommerce businesses.


11 Ways AI is Transforming the eCommerce Solutions

The future of AI in e-commerce is permanent, considering the benefits it brings. Read further for our comprehensive list of how AI changes the ecosystem of online shopping.


Customer-centric Services

The game of personalization has increased customers’ love for online shopping. Earlier customers missed the personal interaction of a sale that a brick-and-mortar store offers. But now, by incorporating AI techniques, eCommerce store owners can provide custom-centric and personalized searches.

Predicting and analyzing customers’ buying behaviors is possible now with AI. Machine learning algorithms derive meaningful insights from large volumes of customer data like previous purchases, browsing history, etc. This helps business owners understand their customers’ tastes and preferences better.

You can provide your shoppers with personalized experiences based on these data-driven insights. Lucrative deals, discounts, size and color suggestions, personalized ads, etc., are some great ways to tailor your customers’ shopping experience.

Smart and Personalized Recommendations


Smart and Personalized Recommendations

Surveys on online shoppers have revealed that providing personalized recommendations has enhanced their shopping experiences. You may have come across these lines often – “You might be also interested in.” “You may also like” “Recently Viewed.” These are the best examples of the application of AI in e-commerce companies.

Integrating the product recommendations feature on your eCommerce website and applications can increase your sales. The recommendations for shopping apps are made after studying the following factors:

  • Previously purchased items
  • Previously rated or liked items
  • Wishlist Products

With the help of an Artificial Intelligence development company, sellers are making the most of AI to provide smart recommendations to their customers.

shopping apps are made after studying the following factors



Accurate Sales Prediction

Earlier, sales forecasting was done by using historical data. But with the rapid changes in market environments, it becomes difficult to predict future sales now.

The introduction of AI has eliminated the need to analyze past data manually. AI forecasts sales accurately by constantly studying market trends, customer activities, and economic scenarios.

Also, the time required by AI to produce results is much lesser compared to the time taken by humans. With AI, you can also perform competitor analysis to determine your areas of improvement.



Read Also: How To Develop a Voice Assistance Application Like Alexa?


Eliminates Fake Reviews

Reviews influence the purchasing decisions of customers. It is the foundation of customers’ trust in online shopping.

However, receiving fake reviews has become very common these days. Earlier, retailers couldn’t find ways to tackle such reviews. But now, big brands like Amazon use AI to fight against fake testimonials or astroturfing.

AI technology helps in the easy detection of false reviews. This ensures that your customers do not fall under the traps of such deceptive comments. AI verifies the reviews based on several review characteristics. It makes only the authenticated or genuine reviews visible to the customers.


Easy Inventory Management

Automation has taken the ecommerce space by storm. From streamlining product management to handling orders and tracking sales to managing inventory – AI does it all with zero to minimal human intervention.

Retrieving supplies and dispatching items through automated robots have simplified warehouse management. Also, maintaining inventory records has become easy through AI implementation.



Read Also: Shopify vs. Magento: Choose the Best eCommerce Platform for Your Business


Retargeting Potential Customers

Many users visit your site, select a product, and finally abandon the cart. AI enables online retailers to retarget those prospective buyers through push notifications and reminders. If a user browses and views a product on your ecommerce site, you can market that product or similar product again to the user on social media or any other websites.

AI reads the customers’ minds and then anticipates their choices to market products and boost sales. By providing customized offers and the best deals, it convinces the consumers to make a buying move.


Enhancing User experience through Chatbots

Chatbots in your eCommerce store improve the product browsing and shopping experience of the customers. They will guide you and bring you the best collections according to your search criteria.

Also, chatbots have streamlined the service of the customer support team. Customers no longer have to wait to connect to real humans to get their queries solved. Every eCommerce mobile app development company includes chatbot development in their eCommerce solutions.

AI-powered chatbots can provide you with all the information related to your order. You can directly chat and interact with the chatbot to know your order status and estimated delivery time. Chatbots have contributed a lot to the increase in sales in eCommerce.

Enhancing User experience through Chatbots


Pushing prospects for conversions
AI technology is effective in convincing potential customers to purchase. AI tracks the users’ purchasing and spending patterns to understand their personas. By leveraging AI and ML algorithms, eCommerce owners offer attractive discounts on products or show products in the price range that fits the user’s budget.

Another example of AI integration is customized push notifications on festive seasons, birthdays, and special occasions. AI knows when users will be willing to spend money, and that’s why it incorporates a personal touch in the notifications.



Virtual Dressing Rooms
The virtual try-on is the latest and most unbelievable advancement in the eCommerce industry. AI-powered software in shopping sites and apps allows customers to try their products digitally before purchasing them.

Many fashion brands have virtual fitting rooms. Also, watch & sunglasses companies and cosmetics brands are augmenting AI into their stores to offer their customers this digital try-on benefit.


Final Thoughts

There is no denying that AI is a revolutionary technology driving digital transformation in retail and other industry verticals. In retail, the eCommerce segment has most benefited from AI. Thus, if anyone wants to know what artificial intelligence is in eCommerce, it cannot be answered in one line.

From analyzing users’ behavior to personalizing their shopping experience, AI has made everything so easy and seamless. Further, it is continuously evolving and unveiling new potentials. So, we can expect more significant developments in AI soon.

Struggling to build your eCommerce store? The talented engineers of our web development company deliver customized solutions to meet the unique needs of your customers. Hire our dedicated developers to utilize the benefits of AI and provide your shoppers with an incredible user experience.


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