A study suggests that there are 12 million to 24 million eCommerce websites in the world! Adding to this, new ones are being created every day. Building eCommere websites is quite easy nowadays owing to the availability of several easy-to-build eCommerce store builders. Although 24 million may be little overwhelming for any newbie, in reality, not all businesses are successful. The same study suggests that less than 1 million of these websites make $1000/year sales and many of them go offline within a year.
Do you want to avoid this fate? If yes, then you must take Artificial Intelligence (AI) seriously. Many eCommerce businesses are already considering or using or have successfully employed AI to transform their businesses for the better. This post offers you insights into how AI is transforming the eCommerce industry.
A study conducted by Gartner suggested that by 2020 almost 80% of customer interactions in the eCommerce industry will be managed by AI-driven applications and the global eCommerce sales will reach $4.8 billion in 2021. Why so? The following pointers will help you understand it better.
This is the most popular application of AI in the eCommerce industry. Although eCommerce businesses label themselves as 24/7 shopping convenience stores, this may not be the case. Many start-ups cannot afford to be online 24/7, and this is where AI applications like chatbots and virtual assistants can help. Chatbots assist customers by offering instant solutions to their queries. Generally, these chatbots extract some part of the information from the text entered by the user and they analyze the previous user behavior and data to find relevant answers. They utilize deep learning for information synthesizing. In addition to this,some advanced chatbots also help customers to find new deals, discounts, and offers. You would be surprised to know that today 20% of eCommerce shoppers buy things worth $350 following recommendations of the chatbot!
Product search is one of the most important tasks on any eCommerce store. Although the trend of contextual search is not new, AI-driven stores assure better relevancy in terms of search. For example, if a person is searching for a particular type of perfume from a specific brand, he may be offered results for similar products from other brands. This makes decision-making and shopping easier for customers. The AI uses deep learning and better text analysis to analyze the data and offer relevant and contextual search results.
Localization refers to a term that shows localized results to store visitors. AI captures their location information to offer advertisements, which may be relevant to them. This feature may be more appropriate for eCommerce stores that have a presence across the globe.
This is one of the key concerns for eCommerce store owners. Managing inventory in the right amount is important to succeed whether it is a brick and mortar store or eCommerce store. Stocking inventory in excess may tie up space and cash, and stocking too little may lead to shortages and unfulfilled customer requests and disappointments. AI analyzes the current shopping trends and informs store owners to increase or decrease the stock based on the deamnd. AI offers quantitative forecasting, which allows eCommerce store owners to stock products at the right time, track and analyze seasonal trends, and calculate appropriate shipping costs based on weight and state taxes.
Today, eCommerce stores encourage users to register and buy from the website. Their profile, search history, and purchase history is stored in their account. Based on this information, the AI provides personalized information such as relevant advertisements and content that would allow users to make a decision. They would recommend the right product at the right time and so on.
The customers may abandon their carts due to various reasons ranging from high prices to complex navigation to complicated shopping processes. In such scenarios, eCommerce stores can employ chatbots and virtual assistants to reduce their cart abandon rates. As these applications can guide customers through different phases of shopping. A study suggests that one out of every five shopper appreciates being guided by an intelligent chatbot and they also complete the purchase effectively. Are you suffering from high cart abandonment rates? If yes, perhaps, now you know where to look for. Isn’t it?
Curbing instances of payment frauds has one of the daunting tasks for eCommerce store owners. Although today eCommerce stores are investing in high-end and robust payment gateways and cybersecurity technologies, that is not enough. Today, you can find AI-powered applications that can filter the payment frauds and alert the user, thereby securing them against monetary losses.
Product descriptions are key to attract customers to your website. However, any wrong product description may jeopardize the integrity of an eCommerce store. If the store is big then manually adding product descriptions can be a tedious task. This will account for human errors as well as increase overhead costs. Here an AI application can help. It automates the task by copying the product information from the manufacturer’s website. AI can also suggest the relevant keywords or clickable product titles for the product based on its deep learning analysis. Now, one may ask what if the product description on the manufacturer’s website changes. In such cases, AI will update the information automatically or send suggestions for the update.
Warehouse automation has become one of the important requirements in eCommerce. Increasing order volumes and decreasing delivery times, have made warehouse automation more important than ever. Although several online stores own well-equipped warehouses, in many cases, it is not manually possible to retrieve and stock products 24/7. AI-powered robots like Kiva Systems by Amazon make it happen. These automated robots roam around the warehouse floor to choose, pick, pack, and ship them to labeled destination in a few steps, thereby making it easier for warehouse owners.
Cyber threat landscape has evolved over the years, and has been driving businesses to find better solutions. Malware, spyware, phishing, ransomware, Trojan, denial of service attack, and spear phishing are a few common cyber threats that have been challenging digital businesses worldwide. Although many experts may not favor AI in cybersecurity, still, it offers lot of hope. AI can help in scanning databases and analyzing logs from different sources. Advanced AI features can detect any new threats as soon as they occur. It can also detect spyware and malware trends and inform the concerned networking team of any suspicious activity. It can also help business owners to distinguish between real and false threats.
Although better user experiences will inspire customers to buy from a particular eCommerce store, that is not enough. They must be informed about the new arrivals, best price deals, special offers, and so on. Isn’t it? Does that mean a marketing team has to work overtime to achieve it? No. The AI can do it easily. AI can send automated emails at the right time informing customers of the new arrivals or new deals.
Are you amazed at the quantum of work that AI can perform? Perhaps, you can expect more in the future. After knowing this, there may be several questions on how can I implement AI in my eCommerce store? Or will it demand big investment? As an answer to this question, we introduce you to Futurism Dimension – an AI powered, next-generation business automation platform. It is an all-in-one intelligent platform that is equipped with advanced features like eCommerce, marketing analytics, and chatbots that can help you build smarter eCommerce stores. Does that interests you? If yes, please feel free to get in touch with our team to discuss your business requirements.