The Growing Importance of Artificial Intelligence in eCommerce
With each passing year, Artificial Intelligence is becoming an exciting concept among eCommerce businesses. Retail is one of those industries where the adoption of Artificial Intelligence (AI) is being seen in a meaningful and actionable manner. AI can automate every retail process to increase accuracy, efficiency, and scaling of operations. From customer acquisition using reliable data, catalog and inventory management to post-purchase experience – AI can benefit retail & commerce in a holistic end-to-end manner. Wondering how? Well, you are at the right place.
This article looks at all the exciting ways to use AI to attain your eCommerce business goals and improve operational efficiencies.
Before we dive into the many ways that you can adopt AI in the E-commerce world, let’s understand the what and why of using AI for eCommerce businesses-
The presence of AI in the eCommerce industry is all about simplifying manual operations and offering a smoother customer experience through-
• Purchasing recommendations
• Anti-counterfeiting tools
• Voice-enabled shopping assistants
• Image and video recognition for advertisements
• Personalized e-commerce shopping experiences
• Facial recognition payment methods
Over the past few years, AI has grown and become a powerful tool to boost sales and optimize operations. Here’s why-
• Real-time personalization
• Targeted Ecommerce
• Seamless automation
• Creates more efficient sales process
• Empower store workers
• Optimize customer searches and recommendations
• Reduce cart abandonment
Once you are aware of AI’s benefits, now is the time to understand the HOW of implementing AI into your e-commerce platform?
The ever-evolving customer demands & higher operation costs are a massive challenge for retailers today. In such a case, using AI is the right way to optimize one of the critical elements of a rewarding customer experience and reduce operational overheads.
According to Statista, 70 percent of e-commerce decision-makers believed AI would help their business with personalization.
Future areas in which AI will help according to e-commerce decision-makers worldwide
Let’s take a closer look at how AI in the eCommerce helps retailers work more innovatively and improve their brand visibility-
Effective Ways Through Which AI Can Lead to Profitable Customer Experiences
1. Data Creation and Labeling
The e-commerce industry cannot evolve without clean and relevant data. Here, AI plays a huge role and helps in creating SEO-ready rich metadata for every product, eliminating human errors. This process can be done using Computer Vision algorithms which can automatically identify various attributes of a product and tag them accurately. It comes as a great help as it allows automatic suggestion of similar purchasing items based on customer preferences, and that capability can increase the size of an average order.
2. Accurate Product Description
Writing product descriptions, i.e., accurate and specific, is itself a significant task, and you might need a copywriter for the same. However, with hundreds or thousands of products available on the website, this can be a costly and time-consuming process. But with AI, you can analyze the key features of each product, create descriptions, make it relevant and optimized for SEO.
3. Data Structuring
A marketplace that sells products from thousands of brands would find it extremely challenging to manually structure data once it is created and extracted from the manufacturer’s catalog. With the help of AI algorithms, it is easier to identify and transform attributes from tables of data or even paragraphs of text. Once it is trained with enough data, patterns can be identified, and auto-suggestion of details can be used to quickly digitize products across several brands and categories. This can also help clean up, group, categorize, search, sort, and filter data.
4. Optimized Customer Searches & Recommendations
Nowadays, artificial intelligence helps targeted customers find what they are looking for in a much more natural way. This robust shopping experience includes specific product recommendations, which lead to increased shopping cart spend, enhanced site layout and knowing how to get customers to the checkout page quickly. AI allows retailers to analyze massive customer data, learning what makes them want to return, how they make purchasing decisions and what motivates them to buy more.
5. Background Removal Tools for Image Cleaning
A customer who visits your eCommerce store indeed makes the comparison of the products before buying anyone. Here, the image background removal service allows customers to make a better purchase decision and bring consistency. No need to spend a lot of your time on removing backgrounds or hiring editors. With AI technology and innovative tools, you can upload and process thousands of photos in just a few seconds.
6. Assortment Intelligence Tool Addition
Retailers are widely shifting to assortment intelligence, a tool that allows an unprecedented level of 24/7 visibility and valuable insights into competitors’ product assortments. With these tools, businesses can easily monitor their competitors’ product mix, segmented by product and brand and the percentage of overlap. Moreover, it allows businesses to adjust their product mix and pricing with high accuracy quickly.
It wouldn’t be an overstatement that e-commerce is at its golden era in this 2020-21 timespan. It is also an excellent way to generate cost reductions. This is the future and, needlessly to say, offers innumerable opportunities to both the owners and the consumers. But, if you are thinking about how to start? We have got you covered!
At Successive Digital, we design and offer intelligent retail solutions and strive to transform your business approaches to digital strategies and automated solutions. Connect with our experts and expand your brand with retail intelligence!