Applications of Artificial Intelligence (AI) in E-Commerce

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Today is the world of AI, which we pet call that technology called Artificial Intelligence. It does all the fine tuning in tech from editing photos to answering our issues. It, as a silent moderator, helps us to improve our activities and provide helpful aids.

Even though this technology is artificial, the AI has given a human touch to the eCommerce industry, helping shoppers and store owners in one way or the other. Besides, it has helped improve the whole process of buying and selling with its simple yet powerful programming structure. Let’s go through some of the useful and familiar applications of AI in the online shopping industry.

Applications of Artificial Intelligence

1. Chatbots

Chatbots are the crucial components of an AI-enhanced e-commerce website. These chatbots are chat modules seen on the bottom right corner in most websites and are Artificial Intelligence enhanced computer programs designed to communicate with a visitor in a real human manner. They help shoppers by searching and finding the right product, looking for available products, for comparing different products, and also in making payments. Similarly, they also assist the shoppers in case of complaints and concerns regarding the products and services.

The machine bots let the shoppers talk with them through text, voice message, pictures, images, etc. Hence, without the need for manual labour, they add a personal touch to the relation between the shopper and the store owner.

2. Recommendation Engines

These search-based engines are common nowadays among retailers like Amazon, eBay, etc. The purpose of these engines is to identify the searches of visitors and recommend similar products to them.

Based on the searches, the AI algorithms record the outcomes and generates appropriate product recommendations for the user and displays them on the next visit, or on the next page.

3. Predictive Sales

The AI algorithms are capable of containing extensive learning, analytical programming, and predictive interpretation of massive data sets. Hence, online retailers can use these methods for recording the behavior of their visitors.

The Artificial Intelligence enhanced sales prediction is also helpful in managing merchandise warehouses making sure that the inventory is well stocked with products of higher demand.

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4. Warehouse Automation

Warehousing operations are always the core of an e-commerce retail store. Moreover, they play the protagonist in the sales trends of an online business. Recently, we have seen China-based and US-based online entrepreneurs making use of robotics to sort, pack, and categorize their merchandise. This method had displayed impressive improvements in the speed and efficiency in these operations.

Even though Artificial Intelligence has just started to seep into e-commerce doors, the scale and impact of its operations are at a fast pace. Most importantly, the technology hints a boost in the identification of outstanding prospects, developing stabler customer relations, heightening sales, and connecting the gaps existing between personalization and privacy.

5. Supply Chain Automation

First of all, the e-commerce industry isn’t the mere online platform and the storefront that gets displayed before its visitors. It also involves a well-equipped and managed supply chain which keeps a constant eye on their competitors. Therefore, just a single ‘Out-of-stock’ board is more than enough for a regular visitor to move on to another retailer.

Many e-commerce sites are just bridges between the shopper and retailers. But in the case of the e-commerce store where they are the retailers themselves, the influence of AI tech in warehouse management is colossal. It helps a lot in predicting demands and in getting the products to the warehouses on time.

Following are some of the advantages that the AI tech brings to the supply chain management:

  • It renders the intelligence required to efficiently handle the supply chain
  • AI foretells the demands and evolves strategies required to meet them
  • It addresses real-time decisions on the merchant adoption
  • AI schedules the deliveries automatically avoiding shortages
  • It makes use of big data for early identifying the merchant issues
  • The AI tech keeps the product delivery surprise-free and on-time

6. AI-Powered Email Marketing

We all see marketing emails with a hate eye. That’s true. But not all emails are annoying. Emails with products and services of our interest may hold us for a bit without much disturbance.

The marketing emails are back for a second chance with the all-new AI enhancements. The AI tech helps marketers to get more targeted and customized emails delivered to their subscribers and recipients.

The advantages of Artificial Intelligence enhanced mailers are that:

  • The emails get an increased human touch
  • They offer a more exact appeal to the interests of the shopper
  • All emails can be simultaneously sent at a time to be read by a particular customer
  • They make an intelligent analysis of shoppers based on their responses
  • The real-time changes in marketing strategies are done according to the response of shoppers

The better the knowledge of the tech about the store visitors, the better will be the effectiveness of the marketing emails. Therefore, the all-enhanced AI tech will get you the closest with your potential shoppers.

Wrapping Up

E-commercing with the AI tech is always beneficial in terms of conversions and sales. Especially when you are at a transition stage. This is because of the mileage and strong data the AI gives you in the form of learning, analysis, and interpretation. But when you enhance your e-commerce store with all the AI tech, it’s important to learn what all suits your business and what not. Hence, with regular monitoring and all the analytical extravaganza that Artificial Intelligence offers you, you can easily increase the sales of your online store. Hope you become a super retailer!

We really hope you liked the article. Blogs are incomplete without wholesome comments and remarks above all. Shoot yours in the comment section and encourage us!

Nabeel Aslam is a technical writer and content marketer for Flyingloop. He writes product marketing contents and blogs for WordPress and other web related services since he joined the team in 2018.

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