How is AI Used in eCommerce?
Artificial intelligence has been used by eCommerce businesses in a variety of ways ranging from image recognition to personalized searches for products. As AI continues to become more commonplace we will find more uses for it in the eBusiness industry. Here are a few of the most common ways businesses have begun to implement AI and their specific function in the company’s operation.
Chatbots
When a potential customer lands on your eCommerce site, there is a good chance that they have a number of questions. Before AI, online consumers had very few ways to find direct answers to these questions other than company FAQs and customer reviews. But with the introduction of AI-powered chatbots, online consumers can get direct answers to their questions simply by asking them. This can sometimes be the difference between converting a user into a paying customer and that user seeking another brand.
Recommendation System
One of the most direct ways to convert the power of AI into revenue is with a recommendation system. There is a good chance that you’ve interacted with a recommendation system if you’ve ever shopped online. They’ve actually been around since the early 2000s and have been made popular by eCommerce giants like Amazon. With an AI-powered recommendation system, products are recommended to customers based on the products they’ve viewed recently and what they’ve searched the website for. By directly showing your customers other products they might be interested in, you’ll have a chance to make more valuable sales.
Logistics Optimization
Perhaps the most common way eBusinesses implement AI is by optimizing their logistics. This is especially important to businesses that deal with a large volume of products or offer several shipping services. Artificial intelligence is incredibly adept at handling large amounts of data while making very few mistakes. This means they’re perfect for accurately maintaining warehouse databases. Everything from order specifications, to product availability, and even delivery times can all be tracked and maintained automatically by AI.
Benefits of AI in eBusinesses
Automation
The primary benefit of artificial intelligence implementation for eBusinesses is automation. The possibilities of automation in the eCommerce industry are basically endless. For example, customer service can be automated to offer support to your customers 24/7. This benefits the business by saving them time, energy, and operating capital. And it benefits the consumer by ensuring they can get the information they need anytime they need it.
Improved User Experience
AI can improve the user experience of your online store by personalizing it to the individual customer. We’ve already touched on the recommendation system that artificial intelligence makes possible, but there are even more ways AI can cater to individuals. Another way AI can personalize the online shopping experience for your customers is with personalized email campaigns. Email marketing is effective because it is one of the few methods of digital marketing that directly communicates with your customers. This makes it a powerful tool for engaging with your target audience.
Top 3 Tools
TUP eCommerce
TUP Solutions is a software that offers two specific solutions for eCommerce businesses: persona identification and revenue optimization. Persona identification is a process wherein TUP identifies which of your campaigns, on-site promotions, and demographics earn you the most money. You can then use this information to begin optimizing your revenue. TUP will make recommendations to personalize your website based on the information gathered during persona identification.
Granify
Granify is a machine learning service that aggregates data about your customers as they use your website. The service claims to collect around 500 behavioral data points per second on your users. This data is then compared to Granify’s database of behavioral patterns to calculate the customers’ probability of conversions.
Namogoo
Namogoo helps eCommerce merchants identify lost revenue opportunities through artificial intelligence. The most impressive part about Namogoo is that it is able to collect data on both your business’s website and its app. This service is also relatively scalable making it ideal for smaller eCommerce ventures.