Artificial Intelligence and Machine Learning are popular terms nowadays, and we could easily connect with these technologies, given any industry scenario. But have you ever heard of AI/ML in the eCommerce industry?
As per one of the many surveys conducted, it has been published in a report by Global Market Estimates that – AI-driven eCommerce solutions are forecasted to rise at a CAGR of near about 40% by the end of 2026. Such growth is backed by events such as –
- The increased use of AI/ML in customer relationship management
- The increased deployment of AI/ML in eCommerce scenarios
Here’s a quick insight into how the advanced technologies AI and ML are working as a catalyst in the eCommerce industry –
The Power of Chatbots:
No one of us is devoid of these chatbot services on today’s date, right!? We would have come across such artificial assistants at least once in our journey across the digital world. Well, be it a big brand or a small enterprise, everyone has rightly judged the importance of such AI-driven chatbots and implemented them in their businesses.
Chatbots help businesses eliminate the embarrassment of putting the client’s call on hold, which could also lead to losing a potential customer. Yes! Being an automated communication agents, such chatbots provide personalized customer experiences. Moreover, these automated assistants allow text and audio assistance over 24×7 to the customers. Hence, it’s the favorite of the eCommerce industry.
Besides helping eCommerce customers with possible solutions, chatbots also help them make informed buying decisions. Moreover, they facilitate conversational eCommerce to help brands gain acumens from customer input and adjust their responses for better reach.
The Merit of Hyperlocal eCommerce:
AI/ML benefits the eCommerce industry by allowing businesses to create and manage numerous sub-stores depending on the customers’ geo-location. This helps them cater to the specific needs of their customers, thereby increasing their customer base.
This concept is popular as hyperlocal eCommerce as it uses AI/ML technology to connect the local stores of specific geography with the same set of customers. Hence, enhancing their overall shopping experience accompanied by quick delivery.
The Blessing in Disguise with Headless eCommerce:
Headless commerce is all about separating the presentation layer from the website’s function layer, i.e., dividing the front-end part and the back-end part. AI/Ml helps the developers use the ideal front-end technology to deliver an apt content experience. While on the other end, it facilitates them plug-in an eCommerce solution to manage different functionalities at the back end.
This allows brands to raise a personalized buying experience for their customers while also letting them develop a distinct brand identity by customizing different elements such as their themes, checkout, and functionalities.
Empowering with Localized Content
The magic of artificial intelligence and machine learning has helped the eCommerce sector reach the doors of rural and urban populations alike. In addition, these advanced technologies have drawn out the limitations of location and language, assisting businesses to reach a wider audience base.
This has helped companies automatically translate their eCommerce website into 100+ languages in just a few clicks, without any hassles.
The Advent of AR and VR
Augmented Reality and Virtual Reality are the new episodes in the technology series that have entered the eCommerce world. These AI-driven technologies have made the customer shopping experiences more friendly and satisfying.
Businesses have started utilizing AR/VR technologies to run innovative marketing campaigns and gauge customers’ attention. This has also enhanced customers’ virtual shopping experiences and has also influenced their behaviors.
What’s more that AI/ML can offer to the eCommerce industry? Well, there’s much. With artificial intelligence by its side, the eCommerce firms can relish the benefits of –
- Personalized product recommendations
- Improved customer support service
- Efficient price optimization
- Smart and quick logistics service
- Easy customer segmentation
- Forecasting sales and demand
This is not it! Giants such as Amazon and other competing eCommerce brands have rightly understood the importance of technology in drawing the traditional buyers to the virtual platforms. They have evenly leveraged artificial intelligence and machine learning to build trust and drive efficiency amongst customers. Take a look at what they have received by inculcating these pioneering technologies in their eCommerce businesses –
- The increased possibility for targeted marketing and focused advertising
- The elevated rate of customer retention
- Seamless Automation by regulating events like loyalty discounts, low-level support, etc
- The improved sales process with automated follow-up on left-out cart inquiries, data collection, and others
The Final Verdict:
When we talk about the role of artificial intelligence and machine learning in the eCommerce industry, it’s not just about the last-mile delivery. Yes, you heard it right. There’s more to it, such as website optimization, app enhancement, customized services, customer experience, inventory and warehousing management, customer relationship management, etc.
Artificial intelligence in the eCommerce industry talks of many underlying aspects such as –
- Data mining: Collection of historical and current data for deriving predictions.
- Natural language processing is all about how computers can understand and interact efficiently using natural human language with the customers.
- Machine learning: It is an array of algorithms used to solve a given problem.
- Deep learning: It includes algorithm layering to achieve great data understanding.
Apart from this, with the introduction of more feathers in the tech cap, such as that augmented reality, virtual reality, and others, it could be rightly concluded that the eCommerce industry is all bound to benefit in numerous other ways as the AI/ML evolves within itself.