How AI is Disrupting the Future of eCommerce Industry
February 17, 2023
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Ecommerce is the way forward and is already growing at humongous rates and offering countless opportunities. Online shopping has evolved significantly, starting from carts to voice searches and now implementing artificial intelligence.[lwptoc title="Artificial Intelligence (AI) in eCommerce - Exciting Future Ahead" skipHeadingLevel="h1,h4,h5,h6"]
In 2021, global ecommerce sales are expected to reach $4.891 trillion. This figure is expected to continue growing in the coming years, demonstrating that ecommerce is becoming a more profitable option for businesses.
Additionally, online purchases are expected to account for 19.5 percent of total global retail sales in 2021. That is, nearly one-fifth of every dollar spent on retail goods will be made online this year.Online sales are expected to continue growing and consuming a greater share of the retail pie. By 2024, it is estimated that global retail eCommerce sales will reach $6.388 trillion, with eCommerce accounting for 21.8 percent of total retail sales. [Ref]
How is AI Helping eCommerce?
Artificial Intelligence is transforming the way eCommerce businesses operate and offer their customer services. AI improves the online shopping experience for retailers and customers by offering virtual shopping assistants to create a personalized shopping experience. It also helps build a more customized environment by examining data sets and recognizing multiple customer behavior trends.
Image Source: Statista
AI is changing the business models of several products and businesses. Artificial intelligence convergence for eCommerce improves marketing expectations for several businesses. It also presents new approaches to evaluate big data and allows eCommerce businesses to connect with their clients and build optimal user service.
In just a few years, the world will witness a rapid growth of AI in eCommerce, which will be used to make significant business decisions, create preventive measures and produce useful business insights.According to a Boston Consulting Group (BCG) report, the retailers who utilized customization plans saw 6-10 percent revenue gains, two to three times as much as other retailers.
Image Source: BigCommerce
With the implementation of smart algorithms, eCommerce stores can now solve customer segmentation and personalization issues. The following technological solutions can further boost eCommerce sales and help the vendors in countless ways in the future, although some of them are already being implemented:
Intelligent Visual Search Engine
According to David Jaeger, almost 50% to 80% of new eCommerce retailers come from visual search. As humans, we buy from experience, and visual experience is the closest that imagination can prompt.At times we all find ourselves struggling to search for something of which we have incomplete details. Visual search engines alleviate all problems and improve the search with a nice snap.All you need is a picture, whether it is clicked-in or downloaded from the Internet via your cell phone or stored on social networks. The user figures out which items fit exactly the picture or are identical once inserted in a program or search engine.
Enhanced Customer Service
A recent survey suggested that 75% of the customers opt for the best customer service brands. Let AI jump in here as BOTs can contribute to the knowledge and awareness of user-profiles and interests.The availability of the Chatbot 24/7 and the instant feedback platform has a special touch for interaction. The conversation will go beyond knowing the consumer's purchasing preferences, include specific product details, and get feedback to motivate them to stick with the brand for a long time.
Marketers can attract consumers well outside high populations. Machine learning algorithms can identify online and offline trends to analyze what customers may want to purchase.
Image Source: WordStream
The potential customers are easier to find for marketers who can gain insight from their results. Search history, purchasing history, contact information, connections, and geolocation are real gold mines for customer knowledge.Deep learning enables consumer experiences to be blended with potential sales. Targeting is reliable and subjective with the aid of machine learning. Through machine intelligence, retailers can know what pages their potential clients follow and their order history. All this data may be used to fuel purchasing reviews on blogs, email, or social media through marketers.
Inventory management is not a piece of cake and can even lead to the disaster of eCommerce stores. If you have an excess or lack stock, inventory management can put you under stress. It is difficult to make accurate sales predictions for a human being, leading to cash flow problems.
Image Source: Forbes
AI helps in making future demand forecasts much more accurate. This enables you to easily regulate your supply chain and guarantees you understand more about your clients and their behavior. This reduces the shrinkage and saves you time and money. Forty-six percent of U.S. companies confessed that they do not monitor their inventory, while more than $1 trillion of capital is stocked.It would be best to use a stock management tool to make wise choices based on your products' past performance. Use your tool to prevent you from overstocking and understocking.
Virtual Buying Assistants
You may use AI to build a virtual shopping assistant, helping shoppers select which goods or services to order. Digital assistants can notify the consumer whether the product's price on which the customer expressed interest drops. If led, they will even purchase the item on behalf of the customer. Once integrated into an eCommerce website, this functionality may benefit the customer and contribute to significant cost savings.
Image Source: Verizon
Sales approaches have changed from conventional strategies to more robust and smarter methods. AI in eCommerce can deliver personalized options to consumers and no longer produces unwanted, unacceptable outcomes.Using artificial intelligence, programs may also be personalized with a promotional message meeting the right client on time. An AI-driven CRM will efficiently handle all sales activities and streamline the whole operation.
Advertisement can never bring you more than 400 percent ROAS. Products can not sell themselves without comprehensive details, images, and video material, and customer care can never offer refunds without handling complaints.Ignoring emerging technologies that will maximize production and expand sales will only damage your brand. You should welcome Artificial Intelligence and let the AI innovations help you transition to the modern age of interactive digital consumption.
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