Artificial intelligence and e-commerce: applications and opportunities
With the rise of online retailers, the competition between them has also increased. With their many offers and discounts on products, retailers compete to have an advantage over their competitors. AI may be the new weapon for online retailers.
Applications of AI in the customer experience in e-commerce
Personalization provides customer-specific personalization of their journey on an online retail website based on user information collected and stored by the website, such as the user’s location, browsing history, device, and their operating system. , and the time the user spends on each page. The more a user interacts with the website, the more relevant the personalized experience will be. Provides timely messages and alerts that may be of interest to the user. With the knowledge of user data and how to use it, online retailers can change the interface of their website, send notifications about the most demanded products or those that users looked at but did not buy, and offer time limits on the most desirable products.
Personal assistants with artificial intelligence technology on online retail websites provide answers to simple customer inquiries, inform the customer about the status of an order, or find a product from inventory that matches the product description of the customer. Chatbots reduce response time as they provide instant responses and take less time than human correspondents, increasing user retention through reminders and notifications and upsell opportunities through personalized approach.
Image recognition is a huge hit with online retail store users, helping to shorten the customer journey and proceed to checkout when customers find exactly what they are looking for. Apps for the connected home have changed the way shopping is done. Voice assistants like Alexa, powered by AI, can perform shopping tasks such as adding or removing items, checking items in the cart, paying, reordering a previous order, checking the shipping status, and checking the availability of a product. .
AI content generation tools help create product descriptions for users to make their decisions. AI can address fake reviews in online retail stores, as fake reviews sometimes discourage users from purchasing a product.
Application of AI in inventory services
AI-powered technologies can provide accurate information that can be used in forecasting sales, which is a critical opportunity for disruption. Possessing the ability or technology to accurately forecast stocks sold on a particular date and use past information from product sales helps to manage inventory efficiently and save high costs. Such planning is essential, especially if the item is perishable, such as vegetables and transportation tickets, which will be worthless if not sold within a specified period. AI can help the sales department to make sales decisions by providing information on parameters such as the most popular and least popular item in a specific period, products that can be successfully promoted on a particular day, the impact of sporting events and cultural in sales. and the sales probability of understanding a short-term turnover.