TOP 7 ideas to use AI in eCommerce
Today's technological progress is so dynamic that it is difficult to keep up with at times. One of the latest developments is artificial intelligence. Although it has accompanied human labour for years, it is now reaching new levels of advancement. Some see in it a gigantic potential, while others perceive it as a threat to existing jobs. We believe that it is a tool like any other and when used properly, it can yield multiple benefits, particularly in the eCommerce industry.
In this article, you will find out:
- What is artificial intelligence (AI)?
- What role does artificial intelligence play in the eCommerce industry?
- Which AI solutions will work best for an eCommerce business?
- What is augmented reality (AR)?
- What are the advantages of automation in online sales?
- Do we need to fear artificial intelligence?
What is AI?
Artificial intelligence (AI) is a type of intelligence learned by machines based on patterns of human behaviour. This is also where the term machine learning came from. This is because AI uses neural networks.
In artificial intelligence, neural networks are mathematical models that mimic the workings of the human brain. They are made up of interconnected neurons and learn from data. They enable machines to recognise patterns and relationships in data. Neural networks have various architectures and are used in inventory management, image recognition, natural language analysis, speech processing, and many other fields. They are capable of automatic machine learning and adaptation, which makes them a powerful tool in AI.
AI allows employees to focus on more engaging tasks, like those requiring creative thinking. It is, therefore, an effective way to optimise working time and achieve ever higher job satisfaction. Artificial intelligence can be used to enhance customer service, study customer behaviour, boost customer experience and improve product recommendations. The possibilities are indeed numerous.
While some fear, that AI poses a threat to many professions, it is a topic worth investigating with curiosity. This high-tech tool can streamline your daily activities and help you operate much more dynamically. This also goes for your online shop.
Below you will find a ranking of what we believe are the best AI tools. By using artificial intelligence, you have the opportunity to gain a significant competitive edge. See for yourself!
eCommerce and artificial intelligence
Constant changes and the need to adapt to them swiftly are the characteristics linking eCommerce companies with modern technology. Artificial intelligence is a great way to push the eCommerce industry forward.
Changing trends, customer interactions, and user behaviour in the eCommerce industry is where the use of AI will be helpful the most. It will suggest how to act in response to the actual needs of your customers.
Artificial intelligence has been present in online sales for many eCommerce retailers for a long time now, but its role is rapidly shifting and expanding. If you want to know which tools will be most helpful, read on.
Our TOP 7 ideas for using AI in eCommerce businesses
Artificial intelligence will drive a paradigm shift in the ways we do business – similar to the invention of the internet but with even greater impact. For us and our merchants, the opportunities are exhilarating. Shopware's ability to adapt and meet the moment is rooted in our open source DNA, also reflected in our AI-focused product strategy. The tools we're creating will touch the entire customer journey, unlocking a whole new level of efficiency. We expect to see major improvements in our merchants' revenue and operating costs. - Stefan Hamann, Shopware
Here's a look at the AI toolkit and technology solutions that are useful in a modern eCommerce business. If you are creating an eCommerce website or other online business, you will surely find something that will help you in implementing an efficient sales process.
AI assistants have long been present in eCommerce businesses. What is important, however, is that such solutions are becoming more and more intuitive and thus more attractive to customers. Especially when natural language processing is being constantly improved.
Chatbots help address basic customer queries without the need to engage staff in the process, who can in turn devote their time to other tasks. Natural language generation makes them more and more pleasant to cooperate with. Customer service for online shops therefore often operates around the clock, thanks to which more people use the service even on holidays or weekends.
The presence of virtual assistants in online shopping is slowly becoming the norm. Chatbots tend to the comfort of users at the basic service level. If they run out of resources to provide an answer, they will redirect the customer to the appropriate consultant or subpage where the necessary information can be found. It boosts customer experience.
AR, or augmented reality
AR (Augmented Reality) as opposed to VR (Virtual Reality) does not mean an entirely virtual reality, but a combination of the surrounding world with digitally created images.
Augmenting reality with digital images allows us to better visualise individual products. AR can be helpful, for example, when customers want to see how purchased items look in their everyday space. Until recently, online retailers couldn't help with it. Without this kind of AI technology, eCommerce customers had to use their imagination.
Now, thanks to AR, personalising your offer is easy. Your customers no longer have to wonder how the new sofa will look in their living room. They can simply see it. We don't need to mention how big an impact it makes on customer satisfaction, right?
AR is used, for example, at Google, where the user can see what a selected animal would look like in a room at a life-size. This type of solution is also appearing in the furniture industry so that consumers can check how given furniture fits into their chosen rooms.
Types of smart search
Modern forms of search encourage users to enjoy online shopping more often. Advanced technology allows them to focus on selecting the products they want without having to bother with complicated search engines or tedious page-by-page browsing. Searching for products on a computer may have put off many potential customers, especially the older ones. However, thanks to new technologies, it has ceased to be difficult and has become intuitive. Yet another way to boost customer satisfaction.
Visual search – searching by image
Visual search is a function whereby your consumers can search for goods using images. If a product appears on an inspirational website or some other random place, users can easily find it through the image without wasting extra time. This is one of Google's favourite new search features. It allows you to find things that we do not know the names of, such as specific screws or flowers.
Voice search - searching with a voice assistant
Voice search will be helpful not only when you want to make your online experience more convenient and faster. It's also a great option that impacts the accessibility of your services for those who struggle with various types of constraints. That's an entirely new customer experience. Earlier, such people were beyond your reach. Voice search can therefore boost sales.
Some businesses operating in modern eCommerce offer voice assistant services that allow the user to successfully go through the entire shopping process, starting from product selection to the finalisation of the transaction.
Efficient customer service process
Chatbots are not all that artificial intelligence has to offer in customer service. AI in eCommerce business will also prove useful in cases where consumers are looking for technical support. Here, automatic solutions are a suitable option.
Process automation can be beneficial, for example, when errors crop up on a page. AI will cope with both detecting and resolving them quickly. This will give users the feeling that even the issues encountered along the way can be smoothly overcome while still enjoying the convenience of online shopping.
One advantage of artificial intelligence is that it learns surprisingly quickly. Machine learning is extremely proficient. That is why, when a new error occurs, the machine will remember both when the complication occurred and how to resolve it. As a result, technical staff will not have to deal with relatively non-complex issues.
But that's not all! Companies that efficiently use artificial intelligence also apply it in tracking customer data and user behaviour. AI can analyse data at a dizzying rate.
Dynamic remarketing is a marketing strategy that involves the use of customer data on the behaviour of website visitors to personalise offers and ads and re-target them with relevant offers. This is an advanced form of remarketing that allows ads to be displayed based on specific products or services that the user has previously viewed or expressed interest in.
The main feature of dynamic remarketing is the ability to automatically generate advertising content based on customer data related to the product the visitor has viewed on the website.
Using dynamic remarketing has significant advantages. Personalised ads can capture user attention more effectively, and increase their engagement and propensity to make purchases again. Dynamic ads tailored to the individual preferences and needs of potential customers may lead to their conversion and increase customer loyalty and the effectiveness of marketing campaigns.
Based on audience data, the algorithm will optimise purchase paths and suggest products to customers in a way that matches their preferences. This way, when a user visits your online shop yet again, they will immediately receive personalised product recommendations that are in line with what they were previously looking for. That changes the online shopping world.
However, don't forget to manage your data properly and protect your users' privacy. The collection of user behaviour data should be carried out in accordance with applicable privacy laws and standards, such as the Personal Data Protection Regulation (GDPR) or the privacy policies of advertising platforms.
Using AI to create content
Among AI tools for eCommerce, you will find plenty of editing software to help you write engaging and effective sales content. AI can not only create short product descriptions but also longer, more substantial texts, the correctness of which you can personally watch over.
Based on the operation of artificial intelligence, the editors also have built-in add-ons allowing you to:
- verify the correctness of the text
- add the necessary multimedia
- optimise content for SEO
- quickly create product descriptions, for example, Shopware's AI assistant
With such a solution, you can make better use of the time allotted to create content for your eCommerce business more efficiently. AI will also help you do research on a given topic and suggest interesting options to consider, as well as titbits you can include in the text.
Personalisation is one of the key concepts when it comes to User Experience. Every user wants to receive special treatment when shopping. Artificial intelligence is helping to provide audiences with this kind of experience.
Consumer behaviour data collected with AI is the path to both a higher quality customer experience and better sales results for your online shop. It is therefore worth taking advantage of technological innovations when growing your online business.
Artificial intelligence introduces the concept of hyper-personalisation, i.e. real-time customisation of online shops. It is worth using this tool by matching audiences to groups based on their behaviour, and not, for example, demographic data.
Will artificial intelligence one day replace humans?
Artificial intelligence is the force that is poised to steer the future of retail to entirely new destinations. The key to success is the ability to extract meaning from big data to solve problems and increase productivity. - Azadeh Yazdan, Director of Business Development, AI Products Group
At present, artificial intelligence is a tool used by humans in various areas of life. It is a cutting-edge technology designed specifically to make humans' daily lives easier. Artificial intelligence is used by humans – not the other way around.
Tools using AI in eCommerce have been functioning effectively for years, especially in the form of chatbots adapted for customer service. As machines take over some work duties, employees spend more time doing tasks that bring them satisfaction.
Artificial intelligence should not be feared, precisely because an algorithm can only be as advanced as its creators will allow. The potential of this technology is therefore worth harnessing in eCommerce, creating an unprecedented quality of user experience.
Artificial intelligence (AI) in eCommerce businesses is a colossal game-changer. You can apply it in so many areas that it would be a shame to stay behind. It is a solution that allows you to optimise your working time and operate much more efficiently than ever before.
With AI, you can be much better at matching product recommendations and purchase paths to the actual needs of your customers, even in real-time. Taking your online shop to the next level of personalisation is one way to succeed in the modern eCommerce industry.
When opting for AI technology and its solutions, keep your users and their preferences in mind. Not every solution will be suitable for a given type of online shop, so it is worth betting on options aligned with the area in which your business operates.
Do you already know which AI applications will work in your company? Or are you still thinking about it? Follow our LinkedIn to find out more! We regularly share tips for online retailers.
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