How Artificial Intelligence (AI) has Shaped the Future of Online Shopping?

Artificial Intelligence

The technology of Artificial Intelligence has come a long way since its early days. In fact, the past decade itself has seen massive strides being made in the sector with Artificial Intelligence finding applications in every economic sector and industry in the world. Artificial Intelligence today has become a daily part of our lives and we go about our day interacting and being influenced by Artificial Intelligence in various ways without even realizing it.

From human interactions to social media and advertisement algorithms, Artificial Intelligence is everywhere, and it is here to stay. Artificial Intelligence is fast becoming the go-to solution for businesses to streamline their operations, improve efficiency and explore opportunities and ideas that did not exist before.

Artificial Intelligence and Machine Learning together have made it possible to create programs that can take over mundane tasks and learn from the data it receives and creates daily. It is through such steps that Artificial Intelligence has been able to integrate into modern businesses and their business operations.

Online Shopping Flying High

The rise of online shopping can be credited to the emergence of eCommerce companies around the world. Online shopping has brought the entirety of the shopping experience to your fingertips. Anything that you want is just a click away, and the best part is you don't have to leave the comfort of your home or take time out of your work schedule to buy things that you need or like. Online shopping has brought the market to you, and you can buy anything you want, at any time you want.

eCommerce has made life and things easier for people as they no longer need to carry heavy bags around after they are done shopping, instead all their items are now delivered directly to their homes. It’s the element of convenience that has led to the widespread popularity of online shopping and why eCommerce companies have become such giants.

Artificial Intelligence in Online Shopping

As we discussed previously, Artificial Intelligence in daily lives has become indispensable. It has found its place in the world of online shopping for it now performs tasks that can only be done by artificial intelligence. An artificial intelligence, in essence, does whatever a human would do using their own intelligence. Artificial Intelligence imitates this behavior and couples it with machine learning, constantly learning from the interactions it has with human customers. It is no longer a novelty but a necessity for eCommerce players.

Predictions

All online shopping platforms are already using Artificial Intelligence for predicting the text you are going to type in the search bar. They can also predict the products you are looking for using your past browsing and purchase history.

Artificial Intelligence uses the data collected by it to analyze what the user is looking for. This it does by comparing it with all past searches and products purchased by people with similar buying and surfing habits. This helps the customers in finding what they are looking for quickly. Moreover, it also boosts the conversion rates as the customer is not distracted by unnecessary items or items that are of no interest to the consumer.

Such predictions also take into account the buying history and tendencies of the customer and can create periodic reminders for the customer based on the previous habits of the customer.

Advertisement

Artificial Intelligence has revolutionized the way you can market your products. The algorithms take into account the products you have bought or browsed through and suggest products related to them based on the past behavior of customers who have bought the same or similar products.

The AI curates the content one sees when they visit the online shopping website and offers them more personalized advertisements based on their preferences and past shopping history. This has led to higher conversion rates for eCommerce players as customers feel important and cared for because of the personalized content.

AI is continuously taking into account the shopping behavior of the customers and suggesting to them products they might be looking for or should need. This is done through advertisements based on what they are looking at, which has led to increased cart and transaction sizes.

Customer Relations

Artificial Intelligence has already proven its utility as customer support. The chatbots are now able to quickly tend to customer queries and provide necessary information and support to the customer instantly. This has increased customer satisfaction and customer retention rates for online shopping websites have been rising as a result. Chatbots are efficient and can deliver accurate information to customers about the delivery of their items, and the status of their carts and communicate with them whenever they face any issue with their transactions or are looking for a particular item.

Ever since AI has stepped in to manage customer-side communications, eCommerce businesses have been able to cut down costs and streamline customer care operations. As of now, only complex issues that need human intervention for resolution are forwarded to human customer care executives and the AI is taking care of all minor issues. From generating service requests, and providing quick updates through emails and chatbots, AI has reduced response times, elevating the customer experience.

Backend Operations

For online shopping websites, the topmost priority is to keep the website and their shopping platform up and running at all times. Any outage in service directly affects customer acquisition and retention. Artificial Intelligence has allowed developers to take care of backend issues by using its machine learning and analytic capabilities. AI can accurately forecast demand and sales and help businesses efficiently manage their inventory. Real-time demand is used for optimizing product delivery and promoting similar products so that the inventory is effectively utilized, and price points can be set accurately.

AI also shines in managing logistic operations and predicting delivery times, delays, and demand levels. From managing inventory to forecasting demand, AI can take care of all operational requirements of the eCommerce business and free human resources which can be then utilized in areas that require complex decision-making.

Conclusion

Artificial Intelligence has already established its usefulness in the eCommerce industry, both in front-end and back-end applications. This technology is used by several gadgets and electronic products in this modern lifestyle to make life simpler such as smart lighting, Bluetooth speakerphones and smart security cameras. With the development in AI technology, and with more and more data, AI will become a more powerful tool for online shopping businesses. It will manage their operations, and develop customer relations, as well as improve conversion rates through efficient and effective communication and personalized shopping experience. This will essentially drive customer retention rates.