Importance of AI in Ecommerce

• September 11, 2020 /
• Lalit Jain /
• 0

Ecommerce is one of the most booming sectors. As the whole world is going online, the competition is inflating rapidly. To cope up with the competition, its imperative to integrate your eCommerce store with next-generation technologies and tools. In recent years, AI has emerged as a powerful technology facilitating different business sectors, businesses of all sizes, and industry niche.  Before discussing the importance of AI in eCommerce, lets first discuss the meaning of Artificial Intelligence.

What is Artificial Intelligence?

Artificial intelligence, also known as machine intelligence refers to the simulation of human intelligence into machines programmed to think and perform human-like actions. Nowadays, the use of artificial intelligence can be seen in various industries. This technology is welcomed by different business sectors and has benefited each one of them. 

• In the healthcare industry, artificial intelligence is helping in surgical procedures in the operating room
• In the financial industry, artificial intelligence is widely used for detecting frauds in the banking sector like unusual debit card usage, and more.

Now, we’ll discuss the benefits of Artificial Intelligence in eCommerce.

AI in eCommerce

Artificial Intelligence has majorly impacted the growth of the eCommerce industry. The eCommerce market is an ever-growing market and the introduction of AI in eCommerce has facilitated the eCommerce industry in multiple ways. It has helped merchants to deliver seamless shopping experience to customers, offer convenient and personalized shopping they’ve never experienced before. Let’s discuss in detail the importance of AI in eCommerce by focusing on the benefits that can be derived via implemented AI tools in eCommerce websites.

6 Benefits of using AI in eCommerce business

Assist Smarter Search

In offline stores, we get human assistance that helps us to find the desired products. But in online stores, such kind of humanitarian assistance was not available prior to the introduction of AI in eCommerce. AI in eCommerce can be used to understand the customer’s intent and long search terms, predict what the customer is looking for, and provide tailored suggestions as per customer’s needs. Ecommerce store owners need to make sure that the search box should be easy to find and equipped with advanced features so that customers enjoy flawless shopping experiences.

Better Inventory Management

If you are keeping overstock units, you might run short on cash and if you go understock, you might lose sales. That’s why it is important to maintain a balanced inventory. AI in eCommerce helps you to forecast the level of inventory. Using advanced inventory management tools it becomes easy to make a better forecast on the number of units required based on the previous sales and performance. This may help you to avoid understock and overstock situations.

Dynamic Pricing

Whether your eCommerce website has 50 products or 5000 products, changing the price of each item manually is a difficult task. Using AI tools it becomes easy to alter the prices of inventory based on market conditions, customer search behavior, level of inventory, and other factors.

Automation

When your eCommerce business grows, the no. of the repetitious task also increases. Automating the day to day tasks simplifies the frontend and backend workflows. With AI tools, it’s easy to publish new products on multiple channels, schedule sales, apply discounts for selected employees, and more can be automated. 

Personalized Customer Service

Then popular AI like Chatbots communicates with the customers as humans do. Implementing Chatbots in eCommerce sites will help you to eliminate the cost associated with the customer service support team. A powerful AI like Chatbots can handle it all. It can respond to hundreds of messages in an hour, answer 10 to 100 calls in a day, and more. The chatbot is a proven technology used by startups to fortunes and you can reap the benefits by deploying it.

Predictive Marketing

Predictive marketing uses artificial intelligence to anticipate what the loyal customers will buy next and how the potential customers are going to react to a new product launch. Using AI in eCommerce for predictive marketing will ensure that your eCommerce website is well-optimized to provide information about what your customers want to search, how they search your products, and also suggest price points at which the products are mostly sold. All this information s based on the data aggregated through your website, and other customer interaction channels like emails, social media, etc.

Conclusion

AI in eCommerce have drastically changed the way eCommerce website operates. It is a must tool for eCommerce websites. Ecommerce entrepreneurs cannot afford to miss the advantages delivered by implementing powerful AI tools. For eCommerce stores wishing to stay ahead of their competitors and grow their business, it will be cruicial for them to integrate with powerful AI tools and add additional functionalities to their online store.