AI or artificial intelligence refers to the intelligence demonstrated by smart machines comparable to the intelligence displayed by human beings. A simpler explanation is that AI-enabled machines are designed to complete tasks that would usually require the application of human intelligence.
Artificial intelligence is growing rapidly across the world, and the AI market worldwide is expected to rake in close to $327.5 billion in the year 2021 as revenue.
AI applications are extremely wide-ranging, and the E-commerce industry features among the industries that use artificial intelligence the most, such as healthcare, education, marketing, and financial services. AI has completely changed the world of E-commerce and how products and services are marketed, bought, and sold.
Businesses and online merchants worldwide are turning to AI-powered automation on their E-commerce platforms to enhance their customers’ shopping experience. The reliance on AI will only increase shortly.
Applications of AI in the World of E-Commerce
The following are some popular AI solutions for retail companies that are highly efficient and powerful, designed to help increase online conversion rates and multiply E-commerce revenue.
1. Voice Assistance
When voice assistants like Alexa and Siri are revolutionizing the way we interact with the world around us, it is also extremely simple for those who have access to these assistants to order a product or service online with a voice command.
Voice-enabled AI solutions offer a platform where voice assistants can actively facilitate E-commerce transactions at both ends. It is highly recommended that you optimize your online store to be accessible to voice assistants to ensure that you do not miss out on potential sales.
2. Creating Customer-centric Visual Search
Apart from text search options, visual search options are being popularized by AI-based programs. These programs can better understand what a customer is looking for by considering visual aspects such as product images. These visual searches are more customer-centric search and are capable of delivering more relevant results to the users.
3. Targeting Potential Buyers
A huge aspect of running a successful e-commerce business is to ensure that marketing efforts are targeted at individuals who are most likely to purchase your product or service.
AI can help you better understand how visitors to your online store respond to your offerings and make their decisions, making it easier to gauge customer interest and who your potential buyers are.
Most E-commerce retail companies have various offerings that a customer can choose from, and each customer is bound to have different interests, requirements, and expectations.
AI-powered automation services can be opted to ensure that your customers get tailor-made e-mails, discounts, and prices to drive up your revenue and sales. AI can also be used to personalize recommendations and the overall shopping experience of your customers.
5. Sales Forecasting
With the abundance of information that can be collated from the browsing patterns of millions of users, AI tools can efficiently predict which group of persons in the retail market are most likely to purchase a particular product or service online at any given price and time.
With this information at hand, you can access safe and accurate sales forecasts to help you make better business decisions.
6. Intelligent Searches
AI-powered search engines or tools are designed to detect patterns and user preferences from a large amount of data consisting of browsing history, past online purchases, and other such information.
With intelligent searches, it is easier to help the user access the exact results he is looking for, leading to E-commerce product listings and marketing efforts being significantly more fruitful.
7. Fake Reviews
Customer reviews left on your products or services are of immense value and can make or break your business and brand. While transparent, verified, and trustworthy reviews could help your customers make better-informed decisions, fake reviews, often negative, may be posted by competitors or other brands to hurt your sales.
Several AI tools will help you filter out these fake reviews and remove them.
E-commerce and AI: What Does the Future Hold?
Artificial intelligence is a booming industry that will certainly transform the way we live our lives in the years to come, and the E-commerce industry will not be immune to this revolution.
With increasing application by companies and businesses worldwide, it is expected that AI-powered tools and programs will eventually manage and process a majority of E-commerce related interactions and transactions, thereby completely changing the way people shop online.
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