Top 10 Ways AI can Influence eCommerce
- eCommerce

Top 10 Ways AI can Influence eCommerce

In today’s world, we can see AI looming around everywhere. AI is showing its magical powers in any business, any industry, and any type. Though in an artificial manner, it has added a smack of personalization in the way we shop. The entire buy-sell structure seems to be turned upside down. According to surveys, the eCommerce industry has expanded by 25%, and this rise is expected to grow and multiply in the years to come.

Competition is getting fierce with every passing day and increasing visibility is the most critical challenge, online retailers have to face.

Employing the toolkit of AI, which includes Natural Language Processing (NLP), Machine Learning and Data Mining, enables organizations to attract and retain the customers with minimal input.

10 Ways AI is helpful for E-commerce

In this post, we will go through 10 ways AI can help eCommerce business.

  • Optimization of Searches

Machine Learning, a profound subset of Artificial Intelligence is integrated into the search functions of the eCommerce website. It enables stores to observe and remember the behavioral patterns of each visitor. For example, what do they search and what are their preferences. Using this information next time speeds up services for the customer and he keeps returning. AI has made intelligent searching possible, via recognizing user’s individual characteristics. The technology can smartly predict the wants of every individual.

It is also possible to suggest customers the products by analyzing product details and searches. On the websites where it is used, the probability of consumer finding the desired products are much more than simple websites.

  • Easy Integration Across Multiple Platforms

Today’s consumer is too much used to technology. They want technology in their domestic lives and personal lives. AI can be used to integrate a retail platform with existing devices, for example, smartphones, fitness trackers, and even household appliances. It streamlines customers’ shopping experiences and attracts them to companies that offer these options.

  • Virtual Personal Assistant

Research shows that nearly 31 percent of business executives, rate virtual personal assistant (VPA) as the most impactful AI tool.

It is an assistant, who never sleeps and never demands a break. It uses NLP to understand and respond to human speech and take the necessary actions. It is equally useful, in both time-saver for the executive’s perspective and as a tool for customers.

  • Customer Service Chatbots

AI will handle 80 percent of all customer interactions, by 2020. Chatbots are now so indispensable customer service tool of eCommerce, that AI in e-commerce cannot be discussed without referring to them. They show up on the home page of e-commerce websites and mobile applications.

You can think of chatbots as AI-based computers that are programmed to communicate with customers in a personalized manner. They help a customer is looking for the right product, checking product availability, comparing multiple products. It also assists them in their payments at the end. Chatbots are normally integrated into shopping carts, online support and order processes.

They connect customers with the appropriate service personnel in case of any complaints or queries. The buyer can communicate with these machines however, he finds best. Text, Voice or sometimes visuals.

It has replaced the call centers. In last year, 67 percent of consumers have used a chatbot for customer service. It gives the personal touch to the relationship between AI and customers inefficient way and without actually employing manual labor.

Hence, it is a tried and tested AI tool based on NPL and ML techniques.

  • Social Media Listening

So much has been said and is said every day on social media. By listening, what potential customers are saying there, a business can gain valuable insights into new markets? They can better understand how good their current products and strategies are working. Data mining can help with keyword or brand name tracking in social media. Found data can be condensed into actionable feedback to enhance the customer experience and the brand’s reach.

  • Predictive Marketing & Sales

The domain of Machine Learning tools is analyzing consumer data and optimizing e-commerce sites to provide targeted marketing. Customers see what they want to see and the way they want to see, and at the time, they want to see. The quality of this optimization would get better if the volume of customer data gathered increases. It would take years to surf this information if you do not use machine learning and AI insights. AI algorithms make a predictive analysis of massive data possible. To keep customers engaged, companies have to keep updating customer data frequently.

House of Cards, a famous show on Netflix was the outcome of such AI pattern learning techniques applied on datasets of the most-watched category of TV shows by a majority of the viewers. Predictive sales aid in organizing and managing the inventory of the warehouses. Moreover, it ensures the company is well stocked, especially when it comes to products that have a higher demand.

  • Personalization is Key

Amid the number of companies vying for attention, a consumer always inclines towards the one that appears the most personal to them. Buying behaviors are taken over by personalization. Utilizing customer information that generates from their online presence, businesses can provide personalized ads, suggest relevant recommendations and design specific content for them.

  • Getting Local

Mining location-based intelligence from customer data allows them to appear local, regardless of the actual location, where the business is based. To raise the efforts of business in their own towns, it is wise to offer location-based offers, location-specific advertising and predicting locational trends. It would be the epic level of personalization and would definitely influence the utility of a site for users by prioritizing the offers who go with the geographical location.

  • Warehouse Automation

Warehousing operations are the most component of the e-retail industry. They play a meaningful role in deciding the trend of sales for a company., the Beijing based company employed robots to boost warehouse processes like parcel sorting, packaging, and categorizing. As a result, the speed and efficiency of the sorting mechanisms and the delivery schedule for the products were improved.

  • Bridges The Gap Between E-commerce and AI

The times when IoT and e-commerce would shake hands are near.  The simple information IoT can provide AI-powered eCommerce sites may include,

  • Grocery Items You Want To Purchase
  • Health & Wellness Products You May Benefit From
  • The payment method of your choice
  • Preferences for entertainment

The Final Verdict

AI may not have molded eCommerce in too many ways, but the level of scalability would increase for sure. We can expect the new ear to dawn, which is of ultra-personalization and

Author Bio:

“My name is Donald B.Brown and I am a content writer at I mostly write about e-commerce, technology, and life hacks. When not writing I can be found around my pets, my books or hanging out with friends.”

Top 10 Ways AI can Influence eCommerce

Workshops for Professional Development

Digital Marketing Strategies by Understanding eCommerce

Join the Club!

Every week, we'll be sending you curated materials handpicked to help you with Digital Marketing. 

Plus, you'll be the first to know about our discounts!

We don’t spam! Read our privacy policy for more info.