Artificial Intelligence (AI) in eCommerce is the science of using intelligent systems to identify and simplify complex tasks, complete purchases, and automate repetitive backend processes in an online store.
It’s a great way to understand user behavior, save time, limit manual intervention and improve customer retention and sales in both B2C and B2B eCommerce stores.
According to a survey by Tractica, industry experts expect the revenue contribution of AI in eCommerce to reach $36.8 billion worldwide by 2025.
Role of artificial intelligence in the eCommerce giant— Amazon’s success
The growth story of Amazon is legendary. It started as an online bookstore in 1994 and today, it is the USA’s largest online store with around 49% of the total market share.
The Amazon Recommendations Secret to Selling More Online
This success results from Amazon’s upselling and cross-selling algorithm powered by its AI-driven product recommendation technology. Amazon uses AI to analyze its buyers’ shopping patterns and sells them more by recommending relevant products.
Not just Amazon, but AI is transforming the B2B eCommerce Industry as well. The industry leaders and your competition are already enjoying the benefits of AI. To survive in this competitive market, having an eCommerce store with AI capabilities is a must.
It’s time to start using artificial intelligence in the eCommerce segment of the retail industry.
5 ways AI in eCommerce improves customer retention and sales
An eCommerce store receives a vast amount of customer shopping data and analyzing it is a critical challenge for every business.
Designing the ideal product combo, upselling to customers, getting high-quality leads, and finding the right technology partner to monitor these activities are some key challenges an eCommerce business faces. Is AI shopping the key to eCommerce success?
1. Planning and implementing futuristic eCommerce marketing strategies with Marketing automation
You can plan your marketing campaigns to support the AI data that you gathered from your customers’ transaction data, buying behavior, preferences, and so on.
Imagine having answers to questions like:
- What are my customers going to buy next?
- What do they love or hate?
- Do visitors like my eCommerce store?
- What devices and channels do they prefer?
- What is their typical price threshold?
- How much discount would trigger immediate purchase?
An AI-enabled eCommerce platform can help you generate these insights on a real-time basis with minimal human intervention.
Your next marketing plan can make up the most leads from your company’s overall eCommerce strategy if you invest in AI-powered marketing automation software.
2. AI for Personalized eCommerce Product Recommendations
AI uses your existing customer data to influence your shopper’s buying decisions by providing a personalized shopping experience.
Product recommendations powered by ewiz commerce
AI can help you personalize your customers’ journey by
- displaying relevant product recommendations
- showcasing custom offers and discounts as per customers’ needs and search queries
- sending personalized and specific emails
- altering prices at a favorable time based on users’ browsing activity
- displaying personalized, automated, and re-targeted ads across various channels
- displaying custom content as banners, videos, and coupons
- offering content recommendations that attract visitors at every stage of the customer journey
Product Recommendations is one of the widely used applications of AI in eCommerce. It has helped eCommerce companies increase conversion rates by up to 915% and average order values (AOV) by 3%.
3. To speed up product discovery using personalized search
Most of us use Google for our daily searches. Not just because it provides the best search results, but also because it gives you the most relevant search results.
Google’s powerful search algorithm analyzes a user’s browsing history to change the search results and shows the most pertinent ones at the top. Often, it attempts to identify your intent and auto-completes your search queries.
Personalized search has proven to boost up conversion rates by 1.8 times.
Personalized search keyword suggestions on The Home Depot
Your online store can use AI to provide personalized search to your shoppers and speed up product discovery in multiple ways by:
- offering relevant auto-complete suggestions
- ranking search results based on the user behavior
- showing add-on items for products that one has searched or purchased in the past
- identifying speech via voice search analyzing images via visual or image-based search
With an AI-powered B2B eCommerce platform like ewiz commerce you can provide customized recommendations to customers in your eCommerce store.
4. Dynamic pricing to boost conversion rates
Dynamic pricing is an eCommerce pricing strategy that involves changing your prices to stay competitive and grow your sales. Based on factors like competitor pricing, user interest, an AI-enabled eCommerce store can offer suggestions on pricing that can help you bag more sales.
In simple words, it tells you what to sell, whom to sell, when to sell, and at what price. Sales do this to close deals. Artificial intelligence in eCommerce analysis your customers’ past transactions and changes prices on a real-time basis to speed up purchases.
But does it work?
Yes. Dynamic pricing has helped businesses boost their gross margins by up to 10%. eCommerce giants like Amazon, Walmart have been using this strategy and have recorded consistent growth for the last few years.
However, it’s important to note that you must test this thoroughly before you take it live on your eCommerce store as putting up the wrong prices can negatively impact your business.
5. Virtual Assistance like Shopping Assistant & AI Chatbot
Chat Widgets and ChatBots are being used by almost all the eCommerce stores. While you need someone to man a chat widget, ChatBots sound dull because of its fixed and standard responses.
Using Deep Learning & Natural Language Processing (NLP), AI-powered bots can have human-like interactions, which are conversational and insightful. These interactions become more personalized and adaptive with every interaction.
ChatBot assisting a website visitor
AI-powered chatbots can:
- showcase the bestsellers to unknown visitors like a human
- suggest fresh deals to your returning customers
- alert your regular customers on stock availability and price change
- reply to customer queries with suggestions
- recommend custom offers and discounts basis purchase history
- offer post-sale support 24X7
Popular brands like Burberry, Sephora, H&M, LEGO, etc., have been using virtual shopping assistants for quite some time. Such assistants can help you cut operational costs by up to 30%.
To sum it up, AI is revolutionizing eCommerce in several ways, and if you have to stay competitive and lead in this digital economy, AI-powered eCommerce is the solution.
Leverage AI for your B2B business with ewiz commerce
ewiz commerce is the world’s only B2B eCommerce platform with built-in AI-powered marketing tools to help you create personalized shopping experiences for your customers.
- AI-powered B2B eCommerce mobile-responsive store
- Automated email marketing automation and recommendation engine
- eCommerce personalization
- Marketing and sales automation tools
- Catalog creator and other AI solutions for eCommerce
Artificial Intelligence in eCommerce allows eCommerce businesses to learn, relearn, and improve sales by using vast amounts of data retrieved through machine learning. It also helps in planning and implementing multiple eCommerce strategies using different workflow automation techniques for different use cases.
Do you want to know more about how ewiz commerce can help your eCommerce business?