How Artificial Intelligence Backs Up eCommerce Businesses to Grow 10X Faster by@sanjay-kidecha

How Artificial Intelligence Backs Up eCommerce Businesses to Grow 10X Faster

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Artificial Intelligence is becoming one of the most critical technologies in eCommerce. It's being used to solve problems, improve customer experience, and grow businesses. Amazon uses AI to predict what customers are likely to buy and predict what they want, which boosts the growth of online retail in general. The use of AI is now being used in all kinds of industries, from healthcare to finance, from manufacturing to retail. If you are starting an eCommerce business from scratch, stay tuned to know how to make it successful with AI.
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Sanjay Kidecha

Sanjay Kidecha is the CMO of Kody Technolab. He loves to explore and write on latest Tech Trends.

eCommerce has come a long way since its inception during the dot-com era. But, eCommerce without automation is like trying to run an efficient business with a manual process. In contrast, eCommerce with automation is like running a successful business with a computerized process. In other words, to grow an eCommerce business, companies must first automate their systems, optimize their operations, and create a strategy for conversion.

Thanks to rapid technological advancement, you can offer an immersive customer experience and plan and execute strategies that would drive more conversion. Though to stay competitive in the market, you need to be adaptive to new technology. One such tech trend that is on the rise currently in eCommerce is Artificial Intelligence. 

The introduction of AI in eCommerce not only helps brands stay on the top but also improves their service quality, customer satisfaction rate, and business decisions. If you are starting an eCommerce business from scratch, stay tuned to know how to make it successful with AI.

Role of AI in eCommerce 

Artificial Intelligence is becoming one of the most critical technologies in eCommerce. It's being used to solve problems, improve customer experience, and grow businesses.

But what exactly is AI? And why should you care?

Let's start with a simple explanation: AI is the simulation of human intelligence processes by machines, especially computer systems. This includes learning (acquiring information and rules for using the data), reasoning (using rules to reach approximate or definite conclusions), and self-correction.

To put it simply, Artificial Intelligence has been around for decades. Still, recent advances in computing power have allowed us to make computers smarter, faster, and more efficient than ever before. The result is that AI is now being used in all kinds of industries, from healthcare to finance, from manufacturing to retail.

The role of AI in eCommerce has already impacted the industry, with some providers, such as Shopify and Amazon. They use it to help customers make better purchasing decisions. Besides that, you can employ AI to enhance the customer experience, with chatbots and virtual assistants assisting at points in the buying process where human assistance is most effective. 

That said, AI has the potential to improve the shopping experience, which is, of course, the primary goal of any eCommerce provider. Ultimately, the increased use of AI in eCommerce reduces the amount of human labor required, minimizing costs for providers and benefiting consumers.

Benefits To Reap Of Artificial Intelligence In eCommerce

Artificial Intelligence is a broad term that refers to computer systems that can perform tasks typically requiring human intelligence. AI solves problems in all areas of eCommerce, from product recommendations to customer service and marketing. Some unique perks of AI in eCommerce include:

Targeted Marketing

AI's ability to automatically generate highly specific and relevant online advertising, product recommendations, and other marketing has revolutionized how consumers interact with eCommerce brands and has led to increased conversion rates and sales.

Customer insights

The power of AI helps eCommerce businesses better understand their customers, generate more personalized content and build better product recommendations.

Refine customer experience 

AI can improve your customers' experience by making it easier to find the products they're looking for. For example, shoppers might be able to search for "black women's jeans" and get results that match their search criteria more accurately than humans could.

Reduced costs 

AI can help reduce costs by automating repetitive tasks and freeing employees' time to focus on more challenging tasks.

Improved sales 

Some types of AIs (like chatbots) can help increase sales by responding quickly to customer questions or concerns about their orders. Other types of AIs (like image recognition software) can help you optimize images, so they're more likely to generate clicks from customers browsing your product pages.

Top use cases of AI in eCommerce

Artificial Intelligence can be used for many applications in eCommerce, such as:


Product Recommendation

Recommendations are one of the essential parts of any eCommerce business, but manually creating them can be time-consuming and expensive. With the help of AI, however, your products will be recommended automatically based on customer reviews and other data collected from your site. That way, you won't have to spend hours making recommendations manually — or hiring someone else who does it for you!


Personalization

One of the primary benefits of AI in eCommerce is the increased ability to personalize the shopping experience for customers. This allows AI-powered eCommerce platforms to continually learn about customers' preferences and habits— which allows them to provide a better experience and generate more revenue. The ability to continuously improve the eCommerce experience consequently boosts the growth of online retail in general.

Prediction

AI can predict what we want and need by analyzing historical data. And the way it can save time and money is by making it an essential part of eCommerce. For example, Amazon uses AI to predict what products customers are likely to buy and recommend them to customers, which leads to higher conversion rates and better customer experiences. 

Automation

Besides chatbots for customer support, AI also helps automate tasks, such as collecting and analyzing massive data to generate reports, inventory management on your eCommerce platform, and more.

Fraud detection 

AI has been used in a variety of ways to flag fraudulent activity, including Automatically detecting duplicate emails and other forms of fraudulent activity on the eCommerce site. Identifying abnormal behavior automatically. So that the human reviewer can pull other sources of information about the transaction and take corrective action before the transaction is completed. It makes it possible to return/cancel purchases that have been fraudulently initiated.

How you can leverage AI in your eCommerce business!!

AI has been used in eCommerce for years, but it has become a topic of interest only recently. Because AI can help companies reduce costs and increase revenue, you should also adopt this innovative technology for your startups or well-established eCommerce brand. 

Here are crucial steps to implement AI into your eCommerce platform.

1 Strategize your motive

Starting with knowing what you want to achieve with AI in your eCommerce business will help you focus on the right area and strategize approaches to implement the technology.

2 Define your use cases

Based on your goal, think through issues where AI will be fruitful for your platform and customers.

3 Outsource expertise

Bring a fresh mind to assist you in digging in and creating a strategic AI implementation roadmap on your eCommerce platform.

4 Build and scale

Execute strategies with MVP development so that you can iterate and test quickly. With every successful iteration, you will step closer to your final product. But ensure you make it fully scalable just in case your user base increases 10X after this.

Does your eCommerce app use AI?

The world of retail is changing at an unprecedented pace. In addition, AI technology has played a major role in this shift, allowing retailers to offer their customers a better shopping experience while also generating more revenue.

Artificial intelligence (AI) has been transforming the way we do many things, from driving our cars to diagnosing our illnesses. It's now being used to help make decisions in our personal lives, from choosing a movie to watching to deciding what to wear. 

And now, it is used to help retailers predict which products their customers will most likely buy next, leading to higher conversion rates and better customer experiences.

It would be foolish not to leverage AI in an eCommerce business not only because it's trending. But AI is the potential to take your business to a whole new level.

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by Sanjay Kidecha @sanjay-kidecha.Sanjay Kidecha is the CMO of Kody Technolab. He loves to explore and write on latest Tech Trends.
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