Powerful Ways AI can Crank Up Your eCommerce Sales
Don’t be afraid of AI, instead learn how AI can really boost Your eCommerce sales all with less manual effort on your part.
Do you feel like you could be doing a lot more to drive eCommerce sales? Not to worry, we’re going to cover some simple ways to do just that.
eCommerce is booming! This is only news if you’ve been living under a rock the past 10 years.
That being said, running an eCommerce business isn’t the easiest thing to be successful at. Competition among online retailers has intensified as everyone wants to boost sales, customer retention, and acquisition ratio while spending less.
Every online store owner is looking for an advantage… a way to achieve more with less effort. AI can help you improve your eCommerce sales and customer management with a whole lot less effort, and that is what this post is going to cover.
Have you been finding it difficult to boost your profitability?
If your answer is Yes, then you need to embrace AI-which stands for Artificial Intelligence. Indeed, AI has unleashed the online industry’s true potential and allows brands to enhance customer experience. Many eCommerce brands today using AI because of its capabilities, such as:
- Enhance shopping experience
- Improve customer engagement
- And boost sales
If you search for AI and ML, you will find lots of blogs and articles that forecast that AI will soon replace humans, but it is not true, though. In fact, a recent report reveals that usage of AI can boost 67% of sales and improve customer experience. But how can online stores do this?
In a nutshell, the usage of conversational AI is reshaping the eCommerce industry by forecasting shopping patterns based on customer’s previous history. But, before jumping to the ways, let’s look at some eye-popping statistics on the usage of AI in eCommerce.
AI Knows Your Customers Well
In 2018, customers were quite frustrated with receiving unwanted promotional emails from brands. Why because it did not relate to them? Here AI comes into the picture as it predicts customer behavior and sends the right kind of mail at the right time.
This is how AI improves customer experience; AI uses predictive analysis techniques to know a customer well. It can also then present them with suitable deals and products they will be interested in. Further, innovation in technology does not stop here. For example, AI-powered digital assistants such as Google Duplex Tool can create a grocery list and place an order on behalf of the shopper.
Hence, to compete with big brands, retail grocery store owners are willing to adopt the digital approach and show interest in developing an online grocery store app to propel their business forward, beef up experience, and eventually boost revenue.
AI in eCommerce: Surprising Stats and Facts
Artificial Intelligence has taken the world by its storm; AI rapidly spreads its roots everywhere, especially in the eCommerce sector. Today, brands like Alibaba, eBay, Amazon, etc. leveraging AI techniques and tools for fake review detection, personalized product recommendations, managing big data, etc.
So, let’s go over some interesting statistics that provide you a deeper understanding of how AI is all set to make eCommerce better.
With more consumers willing to shop online- it is forecasted that 95% of purchases will be made online by 2040.
The global AI market value is projected to reach $267 billion by 2027.
Data from Ubisend Report says that:
- 1 out of 5 customers wants to resolve their doubts through chatbots.
- More than 40% of customers use chatbots to look for ongoing deals and offers.
- Google has invested £400 million in acquiring AI and DeepMind companies.
According to Juniper Research, the integration of chatbots will save more than $8billion per annum by 2022.
Interesting Ways AI Benefit Online Stores
It seems like AI has created hype across all industries. However, if you are not using AI technologies for your eCommerce business, you will be missing out on a huge chunk of potential customers and other golden opportunities to gain customer loyalty. In this session, we will talk about five ways AI can bolster your eCommerce sales. Let’s get started.
Just imagine heading to your favorite online store, or any online store and not being able to find what you’re looking for.
That sucks. More importantly, to the store owner, it’s a missed sale.
Maybe it’s because you haven’t entered the right keyword in the search bar, you may know product specification, features but fail to remember the exact name. AI would have been a real benefit here, simply by implementing predictive search. Even better, what if you had a picture of the item you were looking for and could upload the picture and automatically find it? That would be cool.
It’s also realistic. Yes, this is how an AI-powered visual search bar allows consumers to find products instantly. Consider the example of a well-known fashion store, Myntra. It enables customers to find products based on pictures and improves the online user experience. It will also improve your store’s ranking on search engines.
This reduces the wasted time as consumers no longer need to guess keywords. Furthermore, it will also provide you with more accurate results. In the end, you can fulfill customers’ needs so they will be more likely to buy products from your store.
Another exciting way AI can help online business owners is to send personalized recommendations to customers. For example, sending product recommendations can increase the conversion rate by 43%. Using the big data technique, AI collects customer’s data, analyzes their behavior, previous purchases, searched products, and much more to deliver them a personalized experience.
Intelligent product suggestion offers multiple benefits to store owners such as:
- Boost customer retention ratio
- Improved customer sales
- Personalized shopping experience
- Build an effective email campaign
Consider the example of a popular online streaming website, Netflix, suggesting shows and movies based on users’ preferences.
Voice search uses AI to enable customers to search for items using voice. Alexa, Siri, Google Home Assistant, etc., have become a household name as they allow customers to get things done through voice commands.
A study conducted by ComScore forecasts that by 2022 more than 50% of all searches will be done by voice assistance. AI-powered tools such as Amazon Echo, Google Home allow users to make online purchases and use advanced techniques to anticipate purchases.
For instance, a collaboration between Google and Walmart enables Google Assistant to view a shopper’s purchase history to remind you to make repeat purchases and place the order on the Walmart website.
No wonder AI can make your search results smarter. AI-powered search engines track your previous history and offer you searches that help you find exactly what you are searching for.
Using deep learning, AI-enabled search engines display information from big data. They visit previous browsing history and deeply analyze the customer’s behavior with brands.
For instance, if you are looking for a smartphone on the web, along with web results, you will also see paid advertising listings related to smartphones. Therefore, marketers using AI while creating a paid campaign can reap maximum benefits and increase ROI.
Automation in Warehouses
Earlier, when the corona pandemic came into existence, American companies faced a sudden deficit of certain things such as face masks, hand sanitizer, and bath tissues. Nobody could imagine the situation, but AI helps retailers and distributors to make supply chain management accurate.
Warehouse management is the most important part of many organizations; AI is smart and streamlines the entire operation, from goods procurement to delivery. AI in warehouse management is not a new term; it’s already been here for many years.
Popular eCommerce player, Alibaba has adopted AI to achieve automation, and it is to be said that Alibaba’s warehouses use AI robots, and 70% of work gets done by them accurately.
You only have so many minutes in a day, and every one of them is an opportunity to generate income. If you’re doing something productive, you’re generating money for the business. If you’re wasting time, you’re losing it. This means that you’re losing money if you’re wasting time doing things that could be automated. This is why business automation is taking off in a big way. However, you may not be comfortable automating certain processes.
AI is Here to Stay
AI is a trending topic in the ever-changing business world. Be it customer experience, offering the smart business solution, or increasing profitability, AI has it all.
The best thing about AI is it improves customer experience, giving importance to customer experience, and generating revenue to your online store are the key factors you need to consider, it can help you expand your business reach.
AI has been here for a long time, and more brands are jumping into the AI bandwagon to stay ahead in the competitive curve.
AI has become mainstream in the eCommerce sector; it will change in coming years but arguably reshape the world of online shopping experience by setting new standards.