How Artificial Intelligence is Transforming Ecommerce Marketers in 2020

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Pradeep Makhija
Pradeep Makhija
Pradeep Makhija is a Digital Marketing Executive at Space-O Technologies, a mobile app development company. He likes to share his knowledge and experience with people around by writing articles related to the mobile app and the healthcare industry. In his spare time, Pradeep likes to explore and read more about the trends and needs of mobile apps in different sectors.

Artificial Intelligence has grown massively over the past few years. You would have noticed how it is making the businesses strong and sufficient with its capabilities and power.

From managing the customers at your store to improving their overall experience to providing them with personalized solutions, there is a lot that the technology can do for your eCommerce outlet.

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AI, though it is implemented in most businesses, is still a futuristic technology. According to a report by PwC, this technology will contribute close to $15.7Tn by 2030 to the global economy. While businesses are still not sure about investing in this technology, they are aware that investing in it will help them unleash their opportunities and improve their business offerings.

Customer interaction is an important aspect of eCommerce. It is said that by this year-end, 85% of the customer interactions will not involve a human being. 

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As a number of eCommerce stores are getting ready to implement AI to their businesses, it is time to understand how the technology will improve and transform the eCommerce businesses in 2020. In fact, we will also see how this technology will boost eCommerce owners.

#1 Incorporating visual search

Searching on an eCommerce site for long has been text-based. A lot of people tend to enter keywords that will help them search for a particular product.

Visual Search
Credit: Freepik

However, what if you don’t know the name or, you are not aware of the keywords that can be used for the particular product? That’s precisely why you need a visual search. The new way of searching for eCommerce stores would be visual. You can search using the image of the product.

Add the image of the product to the search bar, and the tool will analyze all the details of the image. This will include color, size, fabric, etc. for the particular product. Eventually, the tool will return with a wide range of product options for you.

As a result, your search results will be optimized to your needs, and your experience in the eCommerce store will be enhanced. The visual search will improve customer experience that will lead to happier customers in your store.

#2 Improve personalization

Artificial Intelligence is data-driven, as most often it learns from the data made available, and builds insights accordingly. In the near future, you will notice the effects of personalization as a result of AI in the eCommerce segment. The eStores will be able to personalize their product offerings and can even improve the overall experience for the end-users.

Based on the data collected from past purchases, order history, and the likes, the technology within the store will be able to enhance the user’s experience and recommend products that interest them. in fact, the technology can even help the store owners predict the purchase choices as well as the behavior of these customers.

In case you own an eStore and a brick and mortar store, then AI will help close the gaps that exist in the operations and improve the functioning of both the store types. In short, the channel experienced will be seamless for the end-users.

#3 Reduce cart abandonments

Cart abandonment is a cause of concern for the eCommerce business owners. They are most often unable to understand why the users decided not to purchase the product. Was it their WiFi connection or, was it that they changed their mind?

Online Purchase
Credit: @pressfoto/Freepik

Artificial Intelligence will give better insights into how users purchase and what makes them complete the buy. It will also analyze the user’s behavior and improve the personalization offering for the user.

For instance, automating the email marketing and sending cart abandonment emails can help get the user back on the store, and complete the purchase. When you understand why the user did not complete the purchase, you would be able to send them content that will make them convert.

Combining automated emails and personalized content, there is a high chance you will be able to convert the customer.

#4 Extend better customer service

AI-based chatbots and virtual assistants will improve the customer service you offer to your end-users. Basically, it will be akin to being attended by the customer service people at the brick-and-mortar store. The salespeople will understand what you want and accordingly devise product recommendations that are meant for you.

better customer service

In fact, the bots will also help resolve your queries, and find products that might interest you. Bots and virtual assistants will take over this job in the online store. They will help you with your product recommendations and even help you find a good product, relevant to your needs.

With the virtual assistants, you can seek help on product delivery, ask them when the product will be delivered and also check on the delays. Basically, all your concerns from recommendations to the delivery will be resolved with these bots and assistants.

AI will help you increase engagement and conversions on your store with these assistants and improve your store experience.

#5 Smart inventory management

Inventory management can be quite a task for eCommerce store owners. You will need to keep the inventory updated and ensure that the goods are available or at least the actual situation updated on the website.

inventory management 1

Challenges you are likely to face:

  • Knowing whether inventory is available in the warehouse and the actual quantity
  • Acknowledging stockout and updating the same on the website
  • Ordering the necessary quantities of the inventory based on the demand

AI can help overcome these challenges with ease. You will be able to manage the warehouse and the inventory therein through the demand forecasting abilities of the technology. It will let you know when the inventory is available and when it is likely to stock out. Once you are aware of the two, you will be able to replenish the inventory accordingly. It will help you know whether your inventory has been ordered or not. The smart inventory ability will also tell you how to procure new inventory when needed.

#6 Optimizing logistics

The other concern for eCommerce businesses would be managing logistics and ensuring optimized routes. They must overcome the challenges posed in the inventory distribution and careful management of the same.

Artificial Intelligence will help optimize the routes and manage the logistics with greater care. It will process the time to be taken by the inventory to reach the destination and carefully estimate the delivery times.

The new automated system will process newer routes and improve logistics. It will also help reduce the overheads for eCommerce businesses.

Amazon started with same-day deliveries, which is now being followed by other eCommerce stores. This is possible owing to the optimized logistics and well-defined delivery systems, which is a result of Artificial Intelligence. The technology can find the item in the nearest warehouse and optimize the logistics accordingly, thus enabling quick and efficient deliveries.

#7 Powered with recommendation engines

For better conversions, the customer needs to be given what they want. In some cases, you should offer them goods that they believe they want or create the demand for the same. However, you would be able to do this only when you understand the customer and their needs.

Artificial Intelligence Technology helps you understand the customer, study their history and purchases and recommend products that you believe they need. This will help you engage them longer and increase conversions.

The recommendation engines within the online stores are helping the eCommerce stores offer better product recommendations and connect with the customer.

Summing Up

The localization of the eCommerce stores and better able to understand the local customer and offer them products is increasing owing to Artificial Technology. This data-driven technology commanded by deep learning and machine learning can enable systems to master the user’s mind and what they think. Accordingly, the machines can improve the offering to the user, and convert better.

With AI power, eCommerce stores can enhance the customer’s experience while shopping online, delivering an in-store experience.

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