The eCommerce sector has a symbiotic relationship with technology since eCommerce only exists because of the emergence of the internet and the global spread of mobile phones, which helped in putting retailers and merchants in everyone's hands or pockets.
E-Commerce is a $2 trillion industry, and we anticipate that Artificial Intelligence (AI) and Machine Learning (ML) will drive this figure much higher.
During the pandemic, most businesses saw moderate or even negative growth, while the e-commerce industry thrived. Artificial intelligence (AI) and machine learning (ML) were being utilized to improve the customer experience and assist the industry in many areas.
Some common applications of AI and ML in the eCommerce industry include providing personalized alerts to consumers on shopping discounts, personalizing responses to consumer inquiries, sending reminders about wish lists, and much more.
What can be the pain points of eCommerce merchants and how AI & ML helped in the overall improvement?
Improved sales-
The AI Model learns from visitors' actions in real-time, and so integrates machine learning for predicting visitors' intentions and adapting the results to display the most relevant goods higher in order to increase the revenue.
Recommendation Systems-
Traditionally, we used to obtain referrals from friends, relatives, or salesmen. As business becomes more digital, recommendation engines have taken on this function.
By presenting relevant goods during important moments of the consumer journey, e-commerce enterprises may customize their offerings. The engine offers additional goods in which visitors may be interested based on their behavioral data. When done correctly, this sort of sales approach and these recommender systems are effective income generators that allow e-commerce enterprises to upsell or cross-sell, increasing the average order value.
Image Search-
This technique is useful for eCommerce in the sense that they can recognize the context of photographs and provide users with customized and accurate search results based on their interests and behavior. This technology has simplified the lives of customers, as they can simply submit the product image they want and locate comparable ones online.
Chatbots in Ecommerce-
According to a survey, 68 percent of respondents are more likely to buy from a company that provides easy communication. Chatbots assist in informing consumers when a product is out of stock and recommending alternatives. They can also be used to notify consumers about delivery, order status, or even to recommend items based on what they are looking for.
Customer Segmentation-
Implementing AI/ML in customer segmentation overcomes the constraints of the traditional approach of segmentation, which was done on the basis of age, gender, and other demographic parameters only. AI & ML helps in exploiting consumer behavioral data to create more focused groups that increase the efficiency of marketing activities. The use of AI/ML in segmentation is not only efficient and scalable but also eliminates the human bias that is present in the conventional procedure.
Combating bogus reviews-
In the area of internet buying, customer reviews have become the foundation of trust. Where people cannot physically see what the items are like before purchasing them, the ratings and reviews of previous buyers may make or break a purchase.
AR & VR is the future of eCommerce-
AR and VR in the future will help the eCommerce industry to scale up by improving the purchasing experience of the consumer.
While buying online, customers may have a richer sensory experience and a better grasp of what to expect using an interactive visual design such as AR and VR.
Conclusion-
Fortunately, using AI and ML isn't as difficult as it looks. There is enough evidence that eCommerce survived and ushered the pandemic only because of new AI-powered tools and technologies. Overall, AI is shaping the roots of eCommerce and will also change the future of the industry.