The number of online stores is growing very dynamically. Hence, regardless of the industry, the e-commerce market is very demanding. Various trends, including AI, help to stay ahead of the competition and stay on the market. Let’s check the importance of AI in e-commerce and how to use it to improve the development of your business.
The impact of artificial intelligence on eCommerce
Until recently, Artificial Intelligence was in the realm of dreams; today, it helps in personalizing the message, acquiring and maintaining relationships with customers, or increasing sales.
AI offers incredible benefits to retail and eCommerce. The main advantages are:
- Cost reduction
- Better shopping experience
- Personalization of services
- Accurate real-time analysis
- 24h service
- Higher conversion rates
Large organizations such as Amazon and Alibaba are investing in the development of technology. However, today, eCommerce is so developed that when talking about artificial intelligence, one has to bear in mind more than virtual assistants. How else are AI-based systems used in eCommerce? Here are five interesting examples.
5 examples of AI in eCommerce
It would seem that dynamic price adjustment is an action that confuses the customer. However, this strategy can increase revenues. AI systems analyze indoor and outdoor sales data, as well as competitors’ prices, to determine the best price at any given time.
Factors that dictate the pricing strategy are:
- Competitive activities
- Market requirements
- Psychology of consumer behavior
- Price restrictions
What do companies gain from flexible product pricing? They can maintain their competitive position, optimized profit margins, and long-term consumer relationships.
Consumers today want to receive offers that match their needs. With AI, it is easier to predict customer behavior, providing them with more personalized suggestions. In this way, we will help customers find the best solution. Personalization allows eCommerce stores to remove many products and services that are not of interest to the customer. It also speeds up their decision-making.
Chatbots are an excellent example of using artificial intelligence in eCommerce. They are conversational tools that use AI to communicate with people. Chatbots operate based on a special algorithm that analyzes the written text to determine and understand customer needs. Then he gives the best possible answer. Chatbots are a solution thanks to which customers can be served very quickly and 24/7. Thanks to chatbots, you can improve customer service and make the work of employees easier. Moreover, these intelligent bots can analyze customer behavior and effectively present personalized offers.
You have undoubtedly used the search function in an online store more than once. Many customers do it. An effective search engine is one that works quickly, flows, and is able to predict the next step of the client. Artificial intelligence turns out to be very helpful here. Why? The AI-powered search engine can predict what a product is looking for even after entering a rather imprecise phrase. Moreover, it can show the customer the products that are of interest to him.
Smart search improves e-commerce by providing the following properties:
Ai can identify the product that the customer is looking for very quickly
- Search by image
Thanks to AI, customers can search for a given product by sending a photo of the item. AI will recognize the image and show similar or the same results.
- Voice search
AI allows you to search for items by voice. This is a convenient solution because it eliminates the need to enter phrases.
- Phonetic similarity
AI has the ability to recognize similarities. Thus, it can search for a given product even if the customer makes a mistake while entering the phrase.
GENERATED DESCRIPTIONS OF PRODUCTS
Having the best photos of your products is not enough. Descriptions are of great importance in the customer’s decision-making process. Creating a convincing, unique product description is absolutely necessary. However, when an eCommerce store offers hundreds of similar products, it seems time-consuming and tedious to create a description for each of them. And here again, AI solutions come to the rescue. There are platforms that allow you to create descriptions from your data. Companies can receive thousands of product descriptions within an hour.
You’ll find more about AI in eCommerce on: https://addepto.com/blog/the-role-of-artificial-intelligence-in-ecommerce/
As we can see, artificial intelligence is part of e-commerce, and in the near future, owners of online stores will be choosing such solutions more and more often. This is understandable because AI allows you to reduce costs and maximize profits, which is crucial for any e-store. This is the fastest way to gain an advantage over the rapidly growing competition in the e-commerce sector.
So if you want to implement AI in your online store, visit Addepto.com to find out more!