Artificial Intelligence in E-commerce: Top Use Cases

Artificial Intelligence in E-commerce: Top Use Cases

E-commerce has been around for a long time now. Given the purpose that it was created to serve, it should come as no surprise that it is now a critical part of the global economy. Despite the raging popularity it continues to enjoy in the worldwide market, there is no denying that it too has evolved considerably since it first emerged on the scene. No, think about it — we have gone from single, individual online vendors to many multi-vendor eCommerce marketplaces. That’s not the only aspect where e-commerce has evolved — the markets now serve has also now expanded to include, well, pretty much everything you can think of. You can now find utensils for your kitchen and furniture for your entire house with equal ease. But wait, these are not the only ways in which e-commerce has evolved over the years.

You see, with customers and their expectations evolving at a rapid pace, the e-commerce industry has felt the need for some dependable assistance to aid the execution of their business. Sure enough, they have found quality help, too — in technology. Yep, modern, advanced technology and countless tools have empowered the world with have now gone on to become an integral part of every single e-commerce industry player’s business strategy. Among the numerous technologies and tools that have aided the achievement of the sector's goals, none has proven to be quite as effective and potent as artificial intelligence. Why else do you think the AI in this sector is projected to grow at a compound annual growth rate of 42.8 percent from 2019 to 2025? 

Now, this begs the question: Exactly what is artificial intelligence bringing to the table for the e-commerce industry? Here are some of the many benefits it brings to the table.
    1. Tailored recommendations: With artificial intelligence in their arsenal, e-commerce retailers can track customers’ shopping history, preferences, requirements, search histories, etc., but also gain a deeper understanding of clients’ needs and demands information. You see, artificial intelligence helps analyze such data extensively and then use the information thus obtained to personalize product recommendations for every single customer. It is consequential to not only winning their business but also delivering a substantially better customer experience. As a result, customers are encouraged to return to the store and drive better sales for the company. 
    2. Optimize pricing strategy: There is not even a shred of doubt about the cut-throat nature of the competition in the e-commerce sector. And given the lucrative nature of this sector and how quickly it is growing, the competition is bound to grow further. In such a scenario, winning over customers isn’t precisely a cakewalk & you need distinctive strategies to convert them. One way to do that is via price optimization, i.e., offering tailored offers and discounts to individual customers at the right time. And, thus significantly improving the chances of them completing the purchase action.
    3. Improved targeting: Given the highly competitive nature of the market, many e-commerce retailers struggle with finding new customers. Artificial intelligence helps them deal with this challenge, too, thanks to its ability to keep an eye on customer data, including time spent looking for specific products, search history, etc. When you gain access to such data, it becomes easier to win them over via customized discounts, deals and offers for items that you now know they are interested in.
    4. Chatbots and virtual assistants: Okay, let’s be honest, artificial intelligence-driven chatbots aren’t exactly news. They have been around for some time now, but the e-commerce industry is only starting to realize how much value they stand to contribute to this sector. They can engage with customers and gather data based on such interactions, which eventually contribute added value to the e-commerce retailer utilizing detailed reports about customers, expectations, demands, etc.
    5. Cybersecurity: E-commerce stores store any data about their customers, including sensitive data such as their address, banking details, etc. So, there is a need to safeguard such a setup. Artificial intelligence helps e-commerce retailers do that by monitoring the traffic to identify any anomalies and predict any cyber attacks. Of course, there are other provisions and systems to do that too — artificial intelligence serves to make sure even the seeming trivial deviations don’t go unnoticed, thus amplifying the level of security offered. 
    6. Smart searches: Yet another compelling aspect where artificial intelligence delivers unparalleled assistance is with searches. Since it can learn and understand customers exceptionally well, AI enables e-commerce retailers to offer search results that offer options for what the customer is looking for AND what they may need.

There is no denying that the kind of value artificial intelligence can offer for e-commerce is exceptional. So, suppose you too wish to leverage its prowess for the benefit of your business. In that case, one must undertake an eCommerce web application development project, albeit with a qualified expert.

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