AI Driven Online Commerce
This year, consumers will have the opportunity to interact with Artificial Intelligence (AI) more than they did in 2016 and 2017, as it will be more interactive and engaging.
This is considering the fact that AI will harness the opportunities from Big Data, which delivers huge amounts of data from prospects’ previous online interactions to carry out predictive analysis of their tastes, preferences, shopping habits, and their next purchases, based on similar profiles from behavior of other consumers.
Part of this exciting change is the interactions of consumers with chatbots, which have already started serving as automated agents for businesses, answering customer queries via chat lines, and picking up what consumers look for so as to deliver the best possible customer experience.
According to business experts, other top predictions for M-commerce that will transform 2023 include the rise in mobile shoppers, and various studies have been conducted to ascertain this.
One of these studies showed that by 2022, there will be 60 billion mobile devices in use across the globe, which means retailers will see a big leap in mobile browsing and larger value purchases made by consumers via mobile.
Additionally, consumer expectation will push and drive speedy delivery which they’ll expect with the conveniences of online shopping and purchasing from wherever they’re based, thus retailers have to implement faster turnarounds, easier return policies, while maintaining their profit margins.
Customers will also expect personalized shopping experiences, such that they don’t see what every other consumer sees online.
All this will be made possible by AI and machine learning, thus retailers can tailor shopping experiences based on their customers, while creating targeted marketing campaigns.
AI is increasingly becoming paramount in 2023, more than ever before, so retailers will begin to take advantage of AI and implementing AI technology to their existing channels, whilst sharing data across the business segments to provide personalized experiences for consumers across all channels.
How AI works in online commerce
AI works in online commerce by using machine learning algorithms to analyze vast amounts of data and draw insights that can be used to improve the customer experience, streamline operations, and increase profitability. Here are some ways in which AI works in online commerce:
- Product Recommendations: AI-driven online commerce analyze customer data, such as past purchases, browsing history, and demographics, to generate personalized product recommendations.
- Search and Navigation Optimization: AI algorithms analyze customer search queries and browsing behavior to optimize search results and navigation.
- Chatbots and Virtual Assistants: AI-powered chatbots and virtual assistants can answer customer queries, provide product information, and assist with purchases.
- Visual Search: AI-driven online commerce analyze images and video to identify products and recommend similar products.
- Voice-Activated Shopping: AI-powered virtual assistants like Alexa and Google Assistant can accept voice commands and help customers make purchases.
- Inventory Management: AI online commerce analyze sales data to optimize inventory levels and reduce stock-outs.
- Demand Forecasting: AI online commerce analyze sales data, customer behavior, and external factors like weather and holidays to forecast demand.
- Logistics Optimization: Optimize shipping routes and delivery times to reduce costs and improve customer satisfaction.
Benefits of AI in online commerce
AI has several benefits for online commerce, both for businesses and customers. Some of the key benefits of AI in online commerce are:
- Personalization: AI algorithms can analyze customer data, such as past purchases and browsing history, to generate personalized product recommendations and offers, improving the overall customer experience.
- Increased Efficiency: AI-powered systems can automate many processes, such as inventory management, demand forecasting, and logistics optimization, reducing manual labor and costs.
- Improved Customer Service: AI-powered chatbots and virtual assistants can provide 24/7 customer support, improving response times and reducing the need for human intervention.
- Better Decision Making: AI algorithms can analyze vast amounts of data and draw insights that can inform better decision-making, such as pricing, inventory management, and marketing.
- Fraud Detection: AI algorithms can detect and prevent fraudulent activities, protecting both customers and businesses from losses.
- Enhanced Search and Navigation: AI-powered systems can optimize search results and navigation, making it easier for customers to find what they are looking for.
- Increased Sales: Personalized product recommendations, targeted marketing, and dynamic pricing can all lead to increased sales and revenue.
Overall, AI in online commerce can lead to a more efficient, personalized, and profitable customer experience, benefiting both businesses and customers.
Currently, the online marketplace has made e-commerce more saturated and competitive, so any business that wants to succeed has to be fast and smart. It can’t afford to spend too much time on discovering marketing ways to generate traffic and leads.
A good example is building websites, which before had to be done by a human web and/or graphic designer, costing thousands of dollars, but today, all you need is an AI website builder to produce a site within minutes.
Here is an infographic that beautifully captures the top 5 AI-drive trends in M-commerce this year and ahead.