Artificial intelligence (AI) has disrupted E-commerce, with the AI-driven market expected to earn $9.04 billion in 2025. Moreover, 33% of American B2B E-commerce retailers have integrated AI into their operations.
If these statistics tell us anything, it’s that AI can help your E-commerce business succeed in the fast-paced, fiercely competitive world of online shopping. AI has changed how an ecommerce website developer builds digital storefronts, which we’ll cover below.
Personalized Product Recommendations
Recommending the same products and deals to customers is now a thing of the past. To grow your business and beat the competition, you must understand and adopt the latest E-commerce technology trends, including personalization.
Businesses that value customer preferences and satisfaction see increased customer engagement and lead conversion rates. Yet, brands find real-time data analysis challenging.
This is where AI comes in, with product recommendation engines examining consumer and product data. Personalized recommendations are based on these data sets, improving your ideal customer’s shopping experience as a result.
How Does AI Personalize Product Recommendations?
AI algorithms look into the following types of data to deliver personalized product recommendations to shoppers:
- Personal information
- Behavioral patterns
- Previous transactions
- Consumer demographics
- Product names, categories, and images
These algorithms also use new data and help you predict whether a shopper would buy a specific product from you. Overall, your E-commerce store can confidently show customers products they’d want to purchase.
Customer Support
If you’ve browsed another E-commerce website, you’ve probably seen a chatbot on your screen. AI for customer support is built with natural language processing (NLP) or similar technologies for significant conversations with humans.
Specifically, chatbots can understand the context of the conversation, identify certain emotions to determine customer intention, and create a reliable database for future interactions.
Many E-commerce sites use AI-driven bots after customers buy a product. However, these customer support automation tools can also assist shoppers at different stages of the customer journey. For example, visitors can ask a bot where to find sportswear on your site before checkout.
Inventory Management
AI can also help with inventory management through advanced predictive analytics. This feature assesses current inventory levels and monitors your supply chain to ensure you meet customer demand.
Using machine learning, you can estimate the exact number of products to order and sell. Additionally, older research found that companies handling their supply chains with AI saved on logistics costs by 15%.
Dynamic Pricing
When it comes to pricing, many E-commerce stores compute sales with basic tools and offer products at the same prices.
You may find static pricing best for your businesses as it doesn’t require thorough data analysis and pricing changes. Nonetheless, this tactic decreases your revenue. With AI-powered E-commerce tools integrated into your online storefront, you can offer dynamic pricing to generate more profits.
Dynamic pricing means selling your products at prices based on:
- How the market is performing
- What your ideal customer needs
- How much your competitors are charging for the same product
AI algorithms set dynamic pricing according to real-time supply and demand levels, consumer demographics, and competitor pricing. Ultimately, it gives your business several benefits, including a competitive edge over other retailers.
Fraud Detection
E-commerce businesses also deal with fraud, which can take many forms: phishing, identity theft, account takeover fraud, and costly chargebacks. All of these can decrease revenue.
If you want to combat fraud, consider asking an ecommerce website developer to add a dedicated AI-powered plugin to your online store. It’ll go through each shopper’s device information, location, behavior, order history, and preferred payment method, identifying possible issues and deceptive transactions immediately.
Overall, using AI-driven fraud detection and pattern recognition can help you prevent fraud and protect your hard-earned revenue.
Review Filtering
93% of consumers read online reviews before buying from E-commerce stores. Still, it allows disgruntled customers to use review bombing to tarnish a retailer’s reputation. Review bombing involves giving businesses fake reviews that lower their ratings.
AI can screen reviews of your online shop to discourage this behavior. If you use machine learning models for this task, they’ll flag fabricated reviews, spot suspicious behavior, and find hashtags about review bombing.
Product Descriptions
A rapidly expanding E-commerce business needs fresh, accurate product descriptions for more relevance to customer searches. You can use AI and NLP to write optimized copy instantly while saving time and effort.
AI writing tools let you produce unique copy tailored to your ideal customer. Top AI-powered SEO software offers writing tools, a keyword ranking tracker, and a content idea generator, streamlining your content production process and helping you rank higher for related keywords.
Visual Search
Since E-commerce relies on visuals to earn considerable revenue, it’s important to build visual search into your online store. In other words, visitors send images of their desired products to your website’s internal search engine.
To add visual search to your E-commerce store, some AI tools use image recognition technology. It helps their algorithms analyze images and identify objects by looking at texture, pattern, color, shape, and size.
Apart from recognizing items, machine learning algorithms can look for information in their database for personalized recommendations. This adds to the various benefits of visual search, which gives customers a simpler way to find the products they want and buy them immediately.
Increasing Conversions
Sometimes, shoppers may change their minds and leave your store without taking their carts to checkout. Abandoned shopping carts significantly affect conversion rates.
AI can boost your conversions and reduce churn rates by retargeting qualified leads with abandoned carts. It gathers user data and contacts shoppers when they don’t buy the items in their cart. One way that AI retargets your prospective customers is to send automated follow-up emails about their shopping carts.
Voice Search
Voice commerce works like visual search, except that customers use their voice to buy products or services. Although it may be new to most shoppers, voice-activated shopping has become a popular option thanks to AI in E-commerce.
With AI and NLP, voice search decodes voice commands by analyzing specific terms, their context, and grammar. This way, your customers can look for products more easily, compare prices between brands, add items to their cart or wishlist, and pay for their chosen products.
Integrating voice search into your E-commerce site also attracts more customers, including people with disabilities, for a more inclusive shopping experience. More importantly, using virtual voice-activated assistants makes potential customers feel like they’re talking to a real salesperson.
Increase Sales with a Smart & User-Friendly Online Store
The E-commerce sector moves fast, making long-term success tougher to achieve. AI now holds the key to more customers and sales, as it helps you deliver the best shopping experience possible in multiple ways. Of course, the technology should be combined with human expertise to build smart, user-friendly E-commerce websites that drive you substantial revenue.
Are you launching a new online storefront or refining your E-commerce strategy? Devwerkz offers strategic E-commerce website development solutions tailored to your business. Contact our ecommerce website design company today or get more expert insights from our blog.