How Artificial Intelligence Can Benefit Your eCommerce Businesses

How Artificial Intelligence Can Benefit Your eCommerce Businesses

Estimated reading time: 7 minutes, 58 seconds

Do you know that about 70% of eCommerce leaders believe that AI can make their business better by offering personalisation in the upcoming years? And about 51% of them stated that they are working on the same for the growth of their business. You see, this much importance AI holds in the world of eCommerce.

What is Artificial Intelligence?

Let us first have a quick understanding of what AI is! AI is the latest and most trending technology, nowadays. In simple words, the intelligence that's demonstrated by the machines is called Artificial Intelligence. It is the imitation of natural intelligence in the machines which are programmed to mimic and learn the acts of humans.

These machines are capable of learning with experience and executing human-like tasks. Moreover, It assists the entrepreneurs to develop a software product with learning capabilities and decision making. This increases the overall profitability and efficiency of the business.

Some Attractive Facts About AI

Confused about AI and its application? Here are some significant facts about artificial intelligence which you must know. These facts will give you a sense of clarity.

  • About 84% of organisations believe that investing in artificial intelligence will be very beneficial for them.
  • By 2023, there will be about 8 billion voice assistants.
  • About 83% of marketers say that AI is the most strategic priority for their online businesses today.
  • Around 15% of eCommerce businesses have adopted at least one technology of AI. That means about 4,32,000 companies.
  • By 2040, the adoption rate of AI will reach 34.8%. Currently, 1.3 million eCommerce businesses are using AI.

Benefits of AI to eCommerce Businesses

By now, you might have got an idea of how much importance it holds, right? Excited enough to know more? C'mon! Let's move on to learn about the benefits of eCommerce AI.

Benefits of AI to eCommerce Businesses

2. Foresight Marketing

How good it would be if they start showing you exactly what you need without you having to say anything. Right? That's why AI comes into the picture. It understands what a customer wants by looking at his/her previous history. Then, show only those products.

Foresight marketing is a very eminent tool. If you wish to go up, then your eCommerce agency has to start forecasting what its clients might need. With the help of foresight marketing, you can optimise your eCommerce market to display only what your consumer wants, how they view a particular product and various pricing points that might interest them.

3. Personalisation

The marketing messages which you get from the big brands like- "Harry, your cart is waiting for you", " Exclusively For You" and many more. These are where they succeed! You must have noticed how nicely all these websites follow the concept of personalisation.

With the help of AI, eCommerce businesses can easily create personalised marketing strategies to interact with their clients. Anyway, personalisation is not something new for eCommerce and if you use Amazon then you will know what exactly we are referring to. Do you know? About 70% of marketers believe that AI can help with the personalisation of their online shops.

Nevertheless, with the advancement in machine learning and artificial technologies personalisation is going on a different level. Whether it is a website or a mobile application, AI technology continuously monitors all the channels and devices to offer a universal client view. It helps businesses provide a flawless experience across all the platforms.

4. Dynamic Pricing

Whether you have 10 products or 100, manually changing their prices can be very time consuming as well as a tough task. But with the help of AI, you can change the prices of products according to multiple data points.

Your inventory, market conditions, capacity as well as consumer demand and behaviour, all can be used to set the prices automatically in real-time.

5. Better Customer service

Artificial intelligence also benefits eCommerce businesses by offering great customer services. With the use of AI, businesses can offer more efficient support to their customers. These chatbots are programmed in such a way that they make human-like conversations with the clients. They greet as soon as the customer steps into the website ( business). Also, they answer every query and confusions of their customers.

This chatbot feature relieves the representatives from their duties. This way, they get more time to focus on other important areas.

6. Product Recommendations

With the help of AI, businesses can recommend different products to their customers. These recommendations will lead to more sales.

One of the most significant eCommerce metrics for businesses is the Average Order Value. The AOV of your business directly impacts the revenue that you generate. Also, you can make it better by using Artificial Intelligence.

By making use of the data (such as previous orders, browsing habits and all) artificial intelligence can have an impact on the buying decisions of customers. When you offer your customer a perfect product recommendation, customers just can't ignore it and they end up buying more from your online store. So, it's a win-win situation for your business

7. Fraud Detection & Prevention

Day by day, with the growth of the digital world, frauds and threats are also increasing. Another significant reason for setting AI with businesses is to avoid these unnecessary frauds and threats.

However, online threats have increased more after the COVID. But, you can avoid all these threats by using AI. Both Artificial Intelligence and Machine learning are going to do wonders for your eCommerce business. By using machine learning, your website can make decisions in real-time. All in all, both of them will assist you in preventing all kinds of cyber attacks, hacks and frauds.

8. eCommerce Automation

The online world doesn't sleep! Yes, they need to be open 24/7 to the users on multiple channels. A human can't operate the business 24 hours a day. That's where eCommerce Automation comes into the picture. Automating the customer support services can save energy, time and operating capital for various eCommerce businesses.

Fortunately, artificial intelligence has proved that it would be of great help to eCommerce businesses. With the help of AI, automation has become such an easy task. It executes the repetitive tasks and simplifies the workflow in the back end as well as the front end.

With the help of AI, it has become possible to automate everything from displaying the latest items on various channels to coordinating the sales, realising the high-risk transactions, offering discounts to the customers and so many more.

Additionally, automation also transfers the burden of answering the queries of the customers regularly. This, in turn, helps the eCommerce business owners to focus more on the challenging and important tasks of the business.

Popular eCommerce Websites Using AI

Did you know that many popular eCommerce sites across the globe use AI? That delivers a great user experience to their existing and new users. Popular eCommerce platforms which use AI are listed below:

1. Amazon

Amazon not only uses Alexa for marketing purposes but also uses it to predict the demand of the customers. Then, they offer product recommendations based on the previous data, which leads to more sales.

Amazon

2. eBay

eBay is also one such example that is taking the maximum advantages of AI. It has successfully added voice assistants, chatbots and even visual search to make the customer experience much better on the website.

Ebay

3. Alibaba

Alibaba uses AI for almost everything from facial recognition payments and augmented reality mirrors to interactive in-store games. And you know what? It even developed an AI copywriting product that makes use of natural language and deep learning models to deliver content.

Alibaba

Conclusion

Here comes the end of our blog. We have jotted down why AI holds so much importance in the online world. It is no longer just science fiction. Now, so many businesses are making a lot of money using AI. AI is so helpful in eCommerce web development.

We all are very well aware of the fact that the success of an eCommerce organisation largely depends on the responsiveness of the website towards the needs of customers. Now is the high time for eCommerce businesses to roll up their sleeves and incorporate AI in their business plans to take the maximum advantage.

So, what do you say? If you're wishing to scale up your online business? Or you want to start an eCommerce business in the UK. Then get in touch with us, we will surely help you reach the zenith.

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To check what we can do with your business and eCommerce store, get in touch.

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