Consumers spent $861.12 billion online with U.S. merchants in 2020, up an incredible 44.0% year over year, according to Digital Commerce 360 estimates. This trend is being mirrored across the world with an exponential increase in transactions on eCommerce platforms. Artificial Intelligence is acting as a right-hand resource in the eCommerce industry is being utilized by online retailers for providing chatbot services, analyzing customer comments, and providing personalized services to online shoppers.
This week at ‘Conversations on AI’, our focus moves to the digital commerce segment &
important applications of AI in eCommerce along with some real-life industry examples.
eCommerce businesses around the world are using AI to accomplish tedious tasks so they can channel their efforts towards more intelligent work. From personalization of online purchases, warehouse automation to automated pricing management, businesses can use artificial intelligence in eCommerce to increase overall profit margins.
With the use of AI booming and more and more businesses adapting to this trend, the time to be in it is now!
While in the past only eCommerce giants used machine learning (ML) algorithms to find out sales trends, now even small retailers use AI and ML to understand the dynamic fashion market. As per data by GLAMI, Fashion retailers see the biggest potential of using AI in areas such as:
– For a decrease in returns
– For personification and smart search
– For customer support
– For inventory & product demand assessments
GLAMI, being the first fashion search engine in Romania, unites hundreds of shops in one place. Digital fashion is certainly kicking up a storm with the consumers. The question is if your business can leverage AI to achieve its full potential?
Your most unhappy customers are your most important source of learning - Bill Gates
An interesting area to analyze this trend is that of eCommerce and physical delivery. It was a growing sector before the pandemic, but the last year has seen a massive increase that is attractive to inimical actors. It is important to identify fraudulent transactions as quickly as possible. AI can look for patterns such as recognizing a number of accounts being created in a short time from the same or similar IP addresses. The result can be a closer focus on transactions by those accounts than by isolated or existing accounts.
The previous year, push for more online ordering & delivery created a massive expansion to eCommerce models, and added an increased risk. Artificial intelligence is being applied to this sector to address risk and thus create a safer environment for consumers.
In the end....
While the global eCommerce sales are projected to touch $4.8 billion by the year 2021, Gartner predicts that around 80% of all customer interactions will be managed by AI technologies. As eCommerce brands gear up to meet this vastly increased demand in 2021 and beyond, the one competitive edge that needs to sharpen is customer experience. Trends and statistics also point to the fact that AI is set to be the real ammunition that supports the ongoing eCommerce boom
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