Artificial Intelligence (AI) is a rapidly growing field that involves the development of computer systems capable of performing tasks that typically require human intelligence, such as visual perception, speech recognition, decision-making, and language translation. AI has many applications in the online retail industry, including product recommendations, customer service, fraud detection, and inventory management.
In today’s article, let’s walk through some of the most used AI tools currently helping online merchants leverage their businesses.
One of the most common applications of AI in eCommerce is product recommendation systems. These systems use data analysis and machine learning algorithms to suggest products likely to interest a particular customer based on their purchase history, browsing behavior, and other relevant data. This can help increase customer engagement and sales by providing personalized suggestions that are more likely to result in a purchase. According to a study by Barilliance, product recommendations can account for up to 31% of eCommerce store revenue.
Here are some popular product recommendation tools for eCommerce stores, the eCommerce platforms they support, and their main features:
Nosto is a personalized product recommendation tool that uses AI to provide customers with relevant and personalized product recommendations across multiple channels.
Barilliance provides eCommerce stores with a suite of personalization tools, including product recommendations, email personalization, and personalized pop-ups.
RichRelevance brings online merchants a host of personalization tools for eCommerce stores, including product recommendations, search personalization, and personalized emails.
Amazon Personalize is an AI-powered recommendation engine that allows eCommerce stores to create personalized product recommendations for their customers.
eCommerce platform: AWS
Boost offers 8 Product Recommendation types for Shopify including 2 AI-powered models, 5 statistic-based, and 1 manual selection. Recommended products are auto-generated based on your store’s statistics once you finish setting.
eCommerce platform: Shopify
Read more: How To Boost Basket Sizes With eCommerce Product Recommendations
AI can also be used to boost customer service when applied to chatbots. These AI-powered assistants can answer customer inquiries and help shoppers navigate the website. Chatbots are also able to continuously improve customer experiences as they gather and learn from feedback.
AI chatbots can help online merchants in several ways:
Let’s see some chatbot tools that help online store owners in communicating with customers.
A chatbot platform that provides eCommerce merchants with tools to create AI chatbots for their website, Facebook Messenger, and other messaging channels. It features a drag-and-drop chatbot builder, live chat integration, and powerful analytics to help merchants improve their customer engagement and conversions.
This is an AI chatbot platform that enables eCommerce merchants to create conversational chatbots for their website, Facebook Messenger, and other messaging channels. It features a user-friendly interface, customizable templates, and a variety of integrations to help merchants improve their customer service and sales.
A chatbot platform that allows eCommerce merchants to create chatbots for multiple messaging channels. It features a drag-and-drop chatbot builder, AI-powered natural language processing, and integrations with popular eCommerce platforms such as Shopify and WooCommerce.
An AI-powered chatbot platform that provides eCommerce merchants with tools to create chatbots for their store, mobile app, and messaging channels. It features a drag-and-drop interface, customizable templates, and powerful analytics to help merchants improve their customer engagement and conversions.
These are just a few examples of eCommerce’s many AI chatbot tools. Each tool has unique features and capabilities, so you should carefully evaluate your needs and goals before selecting a chatbot platform.
Another application of AI in e-commerce is fraud detection. Machine learning algorithms can be trained to detect patterns of fraudulent behavior and flag suspicious transactions, reducing the risk of fraudulent activity, and thus, protecting the business and its customers.
Here are some examples of how brands are using AI to detect fraud in eCommerce:
By leveraging the power of AI, eCommerce merchants can protect themselves and their customers from online fraud and other security risks.
Using AI for inventory management is no longer something new in the e-retail industry. AI can help businesses optimize inventory levels, reduce waste, and improve profitability by analyzing past sales and forecasting future demand.
Still, in doubt? Let’s take a look at these statistics to see the potential benefits of using AI for inventory management in eCommerce:
As AI technology evolves, we expect more e-commerce companies to leverage AI to optimize their inventory and supply chain operations.
These AI tools offer a range of features and capabilities for inventory management in eCommerce, including demand forecasting, inventory optimization, supply chain visibility, and real-time analytics. E-commerce merchants should carefully evaluate their needs and goals before selecting an AI tool to manage inventory.
Using AI in the eCommerce game can help you improve customer retention, adopt seamless back-office automation, and find efficiencies in your sales processes. It can assist you in making better use of your customer and business data to create a successful long-term strategy. So look into the numerous benefits of artificial intelligence and machine learning to provide the best shopping experience on your eCommerce website.