Employing Artificial Intelligence for Ecommerce Success

This eBook lists ways in which eCommerce businesses may utilize Artificial Intelligence to their advantage, it suggests a methodology for preparing business infrastructure for successful deployment of AI, and it offers suggestions as to how businesses may increase
sales through the application of AI in the user experience. AI is changing all aspects of eCommerce from the user experience to the management of cost to the growth or revenue.
Today we are seeing AI impact visual product search, design, and recommendations. Now more than ever, you need to invest in new technologies and digital platforms that will support a strategy centered around being digital first and customer-centric

Artificial Intelligence use cases for Digital Storefronts

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Ways in which stores may utilize Artificial Intelligence to improve their business

While AI is capable of delivering impressive results, it can only be successful when businesses are prepared to implement the technology properly.Oftentimes these efforts are hampered by infrastructure that is not ready or appropriate for AI and the project is either delayed or eliminated as a result.

First, it is recommended that companies get their infrastructure in order and one great place to start is by implementing an Event Driven Architecture (EDA). Doing so will make it much easier and much faster to realize gains from AI.

Since anybody anywhere can buy a given product, demand can surge so fast that retailers struggle to keep up. One challenge they face is maintaining an accurate and up-to-the-moment picture of distributed inventory that’s being depleted by in-store
and online purchases.

One of the early stumbling blocks and a source of many challenges lies in the fact that many retailers have adapted to the breakneck pace of modern retail by layering innovative new applications and cloud services on top of old legacy applications and systems of record. They’ve then tied them all together using integration and middleware tools that rely on batch data exchange, point-to-point integrations, periodic polling, request/ reply interactions, outdated APIs, and synchronous communications.

Choice is Real and more intense

Like offices, physical stores now need to think about the experiences they can provide that people can’t replicate online. While more and more shoppers are heading online, typically it has been in-store where retailers could have fun with customers, providing the “surprise and delight” moments where they could set themselves apart from competitors. Online experiences have historically remained quite functional. Focus has justifiably been on a smooth customer journey right through to checkout. But this hasn’t left any room to add value to customers in a fun or exciting way.

Becoming a stand out is difficult. Given the decrease in in-store visits, the onus is now on retailers to move those experiences online, giving customers something they wouldn’t necessarily expect. Something to keep your brand top of mind. Focus attention on digital locations other than the Homepage Social media has been a game-changer when it comes to how people are buying online. Whether actually within the platform itself, like Instagram, or directing people to other channels, customers are interacting with brands at different points along the retail funnel.

Retailers often spend their time and efforts on their homepage given it is quite often the first point of entry for shoppers, now customers are coming directly to product detail pages (PDPs) and product landing pages (PLPs). This means brands have to redefine their brand experiences and they have to pivot their efforts and direct resources to deliver more content to suit different situations.

IoT Devices and Artificial Intelligence

IoT devices help improve the connectivity of products available on the storefront and at warehouses. They do so by transmitting up-to-date product information in real-time. IoT technologies
analyze the quantity, expiry date, product type, and so on. They keep the inventory streamlined and updated for eCommerce
companies resulting in the prevention of inventory overstock or shrinkage. AI can offer in depth customer insights and help augment the shopping experience like never before

Mobile First

The easiest way to scale an online business, either by mobile or desktop devices, is through artificial intelligence. To simplify the mobile shopping for the customers, virtual shopping assistance
is being used by retailers to help customers by presenting them with the best and the most relevant deals according to their preferences. Artificial Intelligence is capable of recording the customer-related trends and interpreting these trends for enabling the video-marketing

Conclusion

Some of the principle ways AI is being leveraged in e-commerce is through the application of real-time data analytics, interactive experiences such as virtual shopping rooms, personalization based on demographics and search data, and enhanced customer service and customer relationship management through the use of virtual assistants and chatbots.

Ecommerce is witnessing growth as a consequence of increasing convenience afforded by the use of artificial intelligence. A report by Vantage Market Research finds that the global AI in Retail market will grow from $2.93 billion USD in 2021 to $17.08 billion by 2028.

This is indicative of the general trend toward AI adoption both on and offline. Retailers of all sizes and experience levels can benefit greatly from employing AI in one or several aspects of their business.

0 %

Of US consumers aged 18-35 demand a personalized shopping experience

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Returns reduction is estimated just by using AR on a website

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Of US customers won’t recommend a business with a poorly designed website on mobile