Ecommerce or electronic commerce refers to a type of business model that allows companies or individuals to buy and sell products online.
It’s a real challenge to find someone who hasn’t interacted with ecommerce stores, as online retail sales in the US alone are expected to increase by 17.9% to $ 933.30 billion.
Such rapid growth over the past decade required e-commerce stores and online retailers to always seek constant innovation and development in their operations.
There have been many different strategies to achieve innovation; However, today the most important and powerful one is Artificial Intelligence that can serve as a superpower for e-commerce stores and give them a significant competitive advantage. Let’s find out which aspects of e-commerce benefit the most from AI.
Supply chain management
Supply chain management involves the flow of goods and services from companies to customers and is a crucial part of all e-commerce businesses. With the help of proper supply chain management, e-commerce stores can ensure that the right products reach the right consumers at the right time. All this allows companies to reduce costs, improve efficiency and form a better customer relationship
With the help of data and machine learning algorithms, artificial intelligence systems can help e-commerce stores with inventory management to avoid overstocking or understocking. Based on the same technology, companies can ensure that their warehouse space is optimized with the best possible product allocation based on their demand and space capacity..
Delivering goods is another vital part of this process and AI is here to help too. By analyzing data related to weather, congestion and traffic accidents, artificial intelligence algorithms provide the fastest and most efficient road suggestions, saving time, fuel and speeding up the delivery process.
Today, customers choose companies not only based on the products, but also on the after-sales service they offer. Nobody is insured against faulty goods or a problem related to order, however, a positive customer service experience not only neutralizes the inconveniences but also strengthens the customer’s relationship with the brand. That is why all buyers look at the reviews before choosing the brand.
To provide the best possible customer service, companies began to implement artificial solutions in their operations – one of them is chatbots.
AI-powered chatbots help companies automate customer service on a large scale without sacrificing quality of service. Thanks to Natural Language Processing (NLP), chatbots can analyze the customer’s inquiry, understand their message, and provide thoughtful responses and assistance.
The same NLP technology can help with customer feedback analysis. Paying attention to every customer feedback is critical, but a very difficult and demanding activity. However, with the artificial intelligence system, you can automate this process and get an analysis of customer sentiment in seconds.
This way, your staff can forget about the manual work of reading thousands of reviews and instead spend their time solving customer inquiries and problems.
Happy employees mean happy customers and happy customers mean growing revenue. Companies began to realize that happy employees are more productive and motivated to do their jobs and have an amazing impact on business.
While company events and benefits are a great way to start, your main goal should be to eliminate boring and repetitive tasks. In fact, one of the most desired things by job seekers is meaningful work.
The feeling of contribution to the company by doing a job that can bring a real change makes your staff more appreciated and valued. The automation that came with AI eliminated repetitive manual work from employees and actually augmented them to drive higher productivity.
As we mentioned earlier, with the help of AI automation, employees can spend their time performing tasks that have real value and solve real problems.
“When the customer comes first, the customer will last.” This is the exact reason that companies pay so much attention to the customer experience.
Earlier, we mentioned the importance of customer service, which is just one piece of the puzzle that focuses on supporting the customer, however, customer experience is a broader concept and includes everything related to customer perception and sentiment about the business.
For e-commerce businesses, customer experience can mean everything from the ad the potential buyer sees on social media, to the website, product quality, or after-sales service.
So how can AI improve the customer experience for ecommerce companies? Personalized experiences are one of the most important benefits of AI for e-commerce.
Stores have a wide range of products and it is essential to show the right product to the right customer. This engages the customer more with the brand and increases sales.
AI can analyze and compare data related to search history, interests and user activity, and predict the most desired products that the customer might find useful. However, this is just one of the ways that AI helps e-commerce improve customer experience and its use cases are steadily increasing.
Since e-commerce stores record a large amount of data, it is a great opportunity for artificial intelligence systems to help such companies forecast future demand, analyze the customer journey on the website, and offer personalized experiences to customers.
With the help of artificial intelligence, e-commerce stores take their services to the next level, improve customer retention and increase their sales. In today’s market, it is important to keep up with the competition and constantly seek innovations, and for this, AI is a perfect tool.
If you want to enhance your projects with AI-powered solutions, schedule a free consultation call with our experts and let’s discover the potential of our partnership.