How Artificial Intelligence Boosts the Growth of the eCommerce Industry
Have you seen Iron Man? Yes, that man who reigned the superhero world and everyone’s favorite. Then after, came the Iron Man 2’ and so on and so forth. So, what did we learn from these movies? Well, apart from the great love for Avengers and the fantastic cinematography. The famous JARVIS and FRIDAY. They were the speaking, talking, and empathetic machines designed by Tony Stark. In short, they were the solid representation and form of Artificial Intelligence? To be fair, it took a hard time for fans to believe the JARVIS had gone rogue; we all loved JARVIS. They demonstrated natural intelligence and could capture real-time data. In short, Artificial Intelligence changed and transformed the face of the entertainment industry.
Similarly, ever since Artificial Intelligence was first introduced into the eCommerce industry, it has been the ‘hot topic’ in the eCommerce industry. Artificial Intelligence is a form of upgrading the current applications or software. Artificial Intelligence is being discussed by all company leaders via education, seminars, podcasts, and every available resource. So, what is Artificial Intelligence?
What is Artificial Intelligence
Artificial Intelligence is the intelligence or smartness acquired and executed by a robot or a computer where they are demonstrating human intelligence and smoothly performed tasks meant for humans. They also have the ability to collect data, analyze, correctly interpret the information, and quickly learn new information.
Artificial Intelligence in eCommerce
The growth of Artificial Intelligence has been seen rapidly in the last few years. New companies are emerging, and big investors are investing solely based on the concept of artificial intelligence. But, how does it impact the eCommerce industry?
Roughly $4,927 Billion of eCommerce sales should be expected in 2021’ according to Statistica.
Consumers have spent nearly $600 Billion on online shopping in the year 2019, which is 14.9% higher than the year 2018’ according to Digital Commerce.
So, imagine an eCommerce world where most of the tedious functions are taken care of by Artificial Intelligence. The companies can serve better to the customers and provide them with a welcoming and satisfying customer experience. And that is why Artificial Intelligence is so important. It helps companies to achieve their goals. Starting from analyzing customer data, understanding customer expectations, conversing with customers, or even providing recommendations to the customers, Artificial Intelligence does it all.
Artificial Intelligence is changing the eCommerce shopping experience and easing most of the most crucial functions for the better success of an eCommerce business. So, let us dig deeper and find out how Artificial Intelligence helps achieve higher success rates.
Applications of Artificial Intelligence
Out of the numerous applications that Artificial Intelligence can offer to the eCommerce industry, let us start with the basics, the most important ones.
Chatbots are instilled with personalized assistance facilities. They serve their purpose of providing customer requirements and sorting customer queries. Similarly, eCommerce websites are using AI chatbots for a better customer experience. They also offer 24*7 assistance and are incredibly intuitive. One important feature added in this is interpreting voice commands, also known as Natural Language Processing (NPL). Through NPL, customers can talk with the chatbot and ask questions like, ‘What is the delivery date of Order No. 34045.’
Gartner predicts that by 2022, 70% of the customer interactions will be through chatbots, machine learning, and messaging, a rise of 15% from 2018.
Better Customer Experience
Every company works to provide exceptional customer service. Thus, Artificial intelligence helps enhance this experience. Artificial Intelligence can effectively improve customer experience by predicting the customer behavior. This means they will offer relevant and highly personalized recommendations according to your preferences or previous buying experience. Artificial Intelligence scans and collects large amounts of customer data from their own site and third-party information as well, based on which it gives suitable recommendations.
For Example: If you have previously searched for ‘casual eyewear’, then based on that history, you will receive recommendations from various shopping websites with photos of ‘casual eyewear’.
Advanced Voice Search
‘Alexa, show me the best shopping websites’. And boom!! Within seconds you will find a list of the best shopping websites. Well, you also just learned that Alexa is an Artificial Intelligence device. In fact, Alexa is the (faceless) face that has caught the most attention! With the advancement in technology, the Artificial Intelligence used by the eCommerce industry has helped retain the customers’ interest and grab their attention. And all you have to do is, ‘Hey, can you show me some options to buy GoPro Heros online’.
Manage Fake Reviews
Everyone is worried about their brand’s reputation. In such competitive times, each and every review matters a ton. Now imagine, guests or competitors post fake reviews to bring a bad reputation to your brand name. Also,
‘More than 80% of the customers rely on reviews and their shopping decisions are affected by negative reviews’ mentioned in Linnworks.
Artificial Intelligence helps eliminate fake reviews aptly and maintains the reviews pool. The rating and reviews are all sorted out, and only the genuine and verified reviews are placed in the ‘reviews’ section.
Artificial Intelligence is the key to managing and organizing the warehouse where they provide quick and productive solutions to the warehouse. This way, Artificial Intelligence does all the hard work, including providing accurate numbers, streamlining the warehouse processes, and forecasting demand, and changing or modifying the orders. Artificial Intelligence also helps make changes in the routes or rerouting goods as and when required. Mostly, with the help of Artificial Intelligence, you can ease up your daily operations and routine work.
Artificial Intelligence has shown much advanced organizing and managing skills to industries worldwide, such as the shipping industry, warehouse management, eCommerce industry, and retail industry as well. This way, the processes have become advanced, efficient, and much accurate. Also, inventory management has seen tremendous growth due to the introduction of eCommerce automation and artificial intelligence. So, it is highly recommended to implement them in your organization.
I write to express and believe that words are powerful. Long drives and traveling are my weekend goals. I write poems when I am happy and enjoy a solo outing. My mind works best when I am by myself at a cafe with a tall glass of cold coffee and sandwiches. I dance in the rain and heat never bothers me. For me, winters are the worst! I laugh when I cry and bring a smile to everyone close to me. Content Writer at Orderhive, I present knowledge on technical aspects on weekdays and on weekends I write for myself.
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