How Artificial Intelligence is Transforming The Ecommerce Industry

“82% of clients will not give a trademark another opportunity after just one terrible knowledge and over 90% will look to other brands for a more satisfactory experience” — Mary Meeker

Table of Contents:

• Introduction
• How is Artificial Intelligence Transforming Ecommerce Industry
• Four Great AI Applications in Ecommerce
• AI-Enabled Smart Solution for the Ecommerce Industry
• Conclusion

An impressive 35% of its total revenue, product sales on the Amazon ecommerce platform and cross-selling are among the major successes of retailers that operate primarily through artificial intelligence or AI. In addition to product recommendations, online retailers in the ecommerce industry are using AI to deliver chatbot services, assess client statements, and contribute personalized assistance to online consumers.

Key Statistics of AI Transforming Ecommerce:

• 95% of purchases will be facilitated by Ecommerce by 2040
• Retail sales are projected to amount to around $30 trillion by 2023
• AI-driven business of $8 billion and is expected to reach $49 billion by 2021
• 80% of customer interaction in the ecommerce industry will be handled by AI

How is Artificial Intelligence Transforming Ecommerce Industry

The aim of artificial intelligence in online shopping is to transform ecommerce traffic by foreseeing purchase patterns based on the products that buyers buy and when they buy them. For example, if online shoppers buy a particular brand of rice each week, the online retailer may send these buyers a personalized offer for the product.

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Four Great AI Applications in Ecommerce

Although eCommerce has many advantages over artificial intelligence, here are 4 key AI applications for eCommerce that dominate the industry today.

In addition to providing good customer support, chatbots are increasing the impact of AI in ecommerce, such as:

• Natural language processing (NLP) can interpret voice-based interactions with users.
• Meeting the needs of consumers with deep insights.
• Self-learning skills that help them improve over time.
• Deliver personalized or targeted requests to clients.

2. Creative Product Recommendations:

Product recommendations provide several benefits to ecommerce retailers, including:

• A huge quantity of refunding stoners.
• Reasonable client retention and deals.
• The personalized shopping experience for online shoppers.
• Activate a personalized business email campaign.

3. AI Personalization in Ecommerce:

Ranking in highly effective ways, personalization is the core of AI in e-commerce marketing. The AI-enabled tool can analyze customer data from several touching points, including BOOMTRAIN mobile apps, email campaigns and websites, to see how they’re communicating online.

4. Inventory Management:

Effective inventory management is about maintaining the right level of inventory that can meet market demand without increasing waste stock. While the traditional form of inventory management was limited to current stock levels, AI inventory management enables how to maintain stocks based on relevant data:

• Sales trends in recent years.
• Projected or expected changes in product demand.
• Potential supply-related issues that may affect inventory levels.

AI-Enabled Smart Solution for the Ecommerce Industry

AI-based technologies are introducing online shoppers to a range of products they didn’t know existed in the market. For example, AI-based technology company SENTIENT TECHNOLOGIES is facilitating real digital consumers to recommend new products to online shoppers based on their shopping patterns and data insights.

Happy with the success of the Amazon Alexa Device, this ecommerce giant is introducing Alexa Voice Shopping, purchase orders only from your voice.

In the fashion ecommerce industry, AI is reducing the number of items purchased through online sales. Fashion brand ZARA is deploying AI capabilities to suggest the right size of clothing with their style preferences.

In addition to these innovations, AI-powered solutions are transforming the ecommerce industry into the following areas.

• AI-enabled email marketing that sends marketing emails to recipients for products or services of interest.
• AI-enabled supply chain automation that enables efficient management of supply chains for Ecommerce platforms.
• AI-based data analytics tools for e-commerce sectors that host benefits such as business, customer profiles and intelligence.
• Omnichannel AI solutions are creating a consistent and seamless customer experience online and at brick and mortar retail stores.

Conclusion

In Ecommerce, artificial intelligence plays a key role in driving innovative solutions and customer experience. The use of artificial intelligence in ecommerce is in the areas of personal shopping, product recommendation, inventory management.

As a retailer working on an artificial intelligence model for your business, it is designed for AI in ecommerce startups to count the number of data analytics providers that offer online retailers to you. It is enabled a solution around product analytics and ecommerce KPIs.

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