If you own an eCommerce business, here is a question for you: “How do you engage users and provide a relevant experience to them?” Well, there are several ways to do that, but with rising digitization, neglecting technology for eCommerce growth can be a huge mistake.
Artificial Intelligence plays a critical role in providing a personalized experience, retargeting the audience, enabling quick answers, and ensuring that buyers purchase the right product.
This blog is a complete guide to how you can use AI in eCommerce and easily implement these techniques to enhance growth. Before you explore those, let’s look at some major statistics.
Key Takeaways
- Implementing AI in eCommerce will help provide tailored product recommendations and boost customer satisfaction and sales.
- AI chatbots provide quick responses, improving customer engagement and conversions.
- Predictive analytics and dynamic pricing can optimize inventory and pricing strategies, increasing efficiency and profits.
- AI enables visual search and seamless checkout, reducing cart abandonment and enhancing the shopping experience.
Stats About the Rising AI for eCommerce Growth
As mentioned above, AI has become a must for the eCommerce industry for various reasons.
- By 2025, AI in retail and eCommerce is projected to generate over $100 billion.
- eCommerce can enhance its performance by up to 30% with the help of visual search.
- Nearly 84% of eCommerce businesses are either actively using AI or have this as their priority.
Several eCommerce brands have already implemented AI strategies in their business to meet their goals. Want to enhance your eCommerce growth? The section below explains the best ways to do so.
Top Ways to Use AI in eCommerce
Now that you know how AI is empowering eCommerce platforms, this section will list the best ways to use AI in eCommerce to enhance customer engagement and sales.
-
Personalized Recommendations for Users
Personalized recommendations are one of the most crucial aspects of eCommerce growth. Reports show that about 77% of customers have chosen, recommended, or paid more to a brand that provides a personalized experience.
Hence, you must use AI algorithms to analyze customer data and borrowing behavior for personalized recommendations. For instance, if a customer buys products of a specific brand often, you can use this information to send recommendations on other products of the same brand.
Providing more relevant and customer-centric recommendations will ensure that the buyers keep coming back to your eCommerce platform.
-
Chatbots and Virtual Assistants for Quick Answers
Another critical feature of the eCommerce platform is AI-led chatbots and virtual assistants. By integrating chatbots across various touchpoints, such as websites, social media platforms, and messaging apps, you can provide quick and efficient responses to customer queries.
About 47% of customers are open to purchasing products using a chatbot. To boost conversions and the overall shopping experience, you should also focus on dialog management techniques, maintain context, and use AI for seamless conversational flow.
Related Read: How Chatbots Are Changing E-commerce Search Experience?
-
Predictive Analytics to Stay Ahead
Predictive analytics in eCommerce involves using AI to forecast future trends, inventory requirements, and customer demand. It does so by analyzing historical data and current market conditions.
With predictive analytics, you can optimize stock levels, ensure the right products are available at the right time, reduce wastage and overstocking, and enhance operational efficiency.
-
Leverage Dynamic Pricing for Automatic Price Adjustments
Another way to implement AI in your e-commerce business is through dynamic pricing. Implement ML algorithms to analyze vast amounts of real-time market data, customer behavior, and competitor pricing.
The AI-powered dynamic pricing system will enable you to adjust prices automatically based on various factors, such as supply, demand, seasonal fluctuations, inventory availability, and external market dynamics.
With AI's ability to optimize various eCommerce facets, dynamic pricing adjusts based on market demands, seasonality, and more. Similarly, understanding shipping costs worldwide is crucial for international trade. For businesses managing logistics across borders, knowledge of container shipping rates ensures efficient operations and cost management.
Additionally, the integration of AI with dynamic pricing strategies ensures that businesses can respond swiftly to market changes and make data-driven pricing decisions in real-time, ultimately maximizing profitability and maintaining a competitive edge in online retail.
-
Visual Search for Smooth Purchase
62% of the buyers say that they want to have a visual search capability on-site for better and easier purchases. Visual search in eCommerce leverages the power of AI to enable customers to upload product images they are interested in and find similar products available on the site.
Hence, this feature enhances the shopping experience by enabling users to search with pictures instead of text, making it quick to find specific products and new items. Adding AI to eCommerce business with omnichannel will boost the user experience and retention rate.
-
Make Product Checkout Fast and Reliable
Artificial Intelligence in eCommerce can also be used for easy checkouts. By implementing fast and simplified checkout experiences, you can streamline the final steps of the purchasing journey, making it even more convenient for buyers to complete the transactions.
Fast and easy checkout will enhance sales on your eCommerce mobile app and website and ensure a smooth shopping experience for customers.
It reduces cart abandonment rates, enhances user satisfaction, and ultimately drives higher sales. Advanced AI can facilitate features such as one-click payments, automated data entry, and personalized payment options, ensuring a smooth and efficient checkout process tailored to individual customer preferences.
Related Read: AI Assistant Extensions in eCommerce
-
Voice Commerce for Quick Product Search
AI in eCommerce plays a pivotal role in improving customer experience and efficiency of voice commerce. AI-powered virtual assistants like chatbots and voice-activated systems enable seamless interaction with customers through NLP technology.
Further, voice commerce features enable users to search for the product they need quickly. AI algorithms can analyze voice data and determine customer sentiment to provide tailored responses and proactive engagement. Adding this feature to the eCommerce mobile app will make the application even more engaging.
-
Re-engage and Reconnect with Potential Customers
Did you know that the online shopping cart abandonment rate is nearly 70%? Buyers usually visit an eCommerce site, add products to their carts, and discard them after some time.
But how can AI help you in this situation? With AI algorithms, you can identify potential customers who haven’t converted yet and pitch the product to them again. With tailored retargeting ads and content strategies across various platforms, you can bring back their interest in the product purchase.
-
Use AI for eCommerce to Localize the Customer Experience
Another great way to use AI for eCommerce is to localize the customer experience for better engagement. For example, with AI-powered language translation tools on the eCommerce platform, users can instantly translate product descriptions, reviews, and customer queries into the language they want.
Hence, it provides them with a local experience. Further, AI can also facilitate personalized product recommendations based on local trends, culture, and purchasing habits, creating a more relevant shopping experience.
Artificial Intelligence in eCommerce- 3 Real World Examples
AI in eCommerce is not new. Leading brands like Amazon and Walmart are leveraging the power of this technology to engage their customers, enhance sales, and improve retention rates.
Here are examples of how brands are growing with AI-powered eCommerce apps.
-
Smart Product Recommendations by Amazon
One of the biggest applications of AI in eCommerce is product recommendations. Amazon uses a powerful AI system to analyze customers’ browsing history, past purchases, ratings, and even what other customers with similar preferences buy. This allows Amazon to recommend products that users might be interested in, creating a more personalized experience and enhancing the purchase likelihood to boost sales.
-
Virtual Try-On With Sephora
Sephora’s virtual try-on experience is a prime example of how AI can create excitement and engagement in eCommerce. Using computer vision technology, buyers are provided with an interactive and immersive experience, allowing them to explore several products in a more engaging way. This way, users can determine in advance whether the product is a perfect fit for their skin, adding an element of excitement to their shopping experience.
-
AI Chatbots and Virtual Assistants by Walmart
Walmart, a frontrunner in eCommerce, demonstrates the convenience of AI in eCommerce. Users can easily locate a chat icon in the corner of the screen and initiate a chat with the AI-powered virtual assistant. For example, when a user types, “What are the dimensions of this TV?” the AI assistant swiftly retrieves and displays the answers, simplifying the purchase process for the customer.
The top eCommerce brands are providing the best experience with AI-powered eCommerce apps. Hence, adding this technology to your eCommerce platform will ensure that customers buy the right products.
Implement AI in eCommerce With GenAI Service at Signity Solutions
AI-powered eCommerce app development requires an experienced team. At Signity, our leading GenAI solutions will help you find the right AI development company for your eCommerce platform.
Our services are designed to meet specific eCommerce business needs, whether you want to provide personalized recommendations, dynamic pricing, or implement visual search.
Get in touch with our professionals, book a consultation, and get a free quote today.
Frequently Asked Questions
Do you have a question? We are here to answer. If you don’t see your question here, please contact us at our contact page.
How to integrate AI in eCommerce?
You can integrate AI in eCommerce by using AI recommendation engines, chatbots, and personalized recommendations to enhance the customer experience.
How to use GenAI in eCommerce?
Implement GenAI in eCommerce to create personalized shopping experiences, optimize product recommendations, and enhance customer engagement.
How is AI empowering the eCommerce industry?
By enhancing personalization, stream operations, and optimizing marketing strategies, AI is empowering the eCommerce industry.
What are the benefits of using AI in eCommerce?
Some benefits of Artificial Intelligence in eCommerce include enhanced user personalization, optimized operations, improved marketing strategies, and better customer experiences.
How can I get started with using AI in my eCommerce store?
To get started with AI in eCommerce, you can begin by implementing AI-powered recommendation engines and chatbots to improve customer experience and drive sales.
What are the risks of AI in eCommerce?
Some of the risks of AI in eCommerce are data privacy concerns, algorithm biases, and over-reliance, leading to reduced human interaction.
