5 ways AI can enhance your ecommerce

How AI is transforming ecommerce How AI is transforming ecommerce

Long reserved for specialized talk about niche areas of web development and robotics, artificial intelligence is now deployed in almost all areas of our lives. AI systems are now becoming game changers in ecommerce tech in many different areas.

Commerce complexity means that the kind of solutions needed to sell products as before, continuously require a complexity only machine learning or AI-powered tools and features can manage.

Here are just some of the applications where AI is making a difference in ecommerce

AI and personalized product recommendations

When you see a selection of products that are related to your interests, you are already experiencing machine learning algorithms that are making recommendations based on your behavior and profile.

Sometimes products are recommended based on your browsing or purchase history. It requires an artificial intelligence tool to work through the millions of possibilities and create relevant recommendations. Other forms of machine learning look at consumer location or profile to find those perfect recommendations. Location is often used in connection with weather data that might suggest certain clothing or other products. Age and gender are two attributes on consumers' profiles which AI tools pick up on to deliver the kind of products users are interested in at any given time. Product affinities are related to recommending what other users who are similar to the user in questions have purchased in the past or have bought in conjunction with the item they are currently looking at.

AI and customer relationship management

Since November 2022, the world has been discussing the new generation of AI-powered chat tools. Chatbots can provide basic customer support and answer frequently asked questions about borders, payments or whatever the standard questions are.

These can reduce the number of contacts for customer service operatives and save companies a lot of time and hassle. These bots are getting smarter and smarter at the moment, which means the level of services they can provide is being extended.

Artificial intelligence and fraud detection

With almost a majority of online activity being caused by bots, AI systems are required to analyze transactions and detect patterns that may indicate fraudulent activity (click fraud etc.).

This helps both marketers create more accurate reports as they exclude the spam bots or fraudsters, and it also helps shut down scammers who are costing ecommerce businesses millions.

Learn more about this on this blog from Fraud0.

Machine learning systems and inventory management

Managing inventory across multiple markets and platforms has become challenging to all ecommerce businesses. Order synchronizations and trend analysis are key features for any new solution under consideration by an ecommerce business.

With trend analysis, AI algorithms analyze sales data and then forecast future demand, giving businesses a head’s up on what to order from the coming weeks, months or seasons.

Price optimizations with artificial intelligence

Price is still one of the most essential attributes for all products in all industries. Setting the right price across platforms with different audiences and across other markets is no longer possible using manual uploads.

AI analyzes market data as well as realtime local data as well as pricing from competitors to come up with the right prices on the right markets at the right times.

Email marketing and the Artificial Intelligence revolution

Almost all effective CRM systems solutions offer AI tools to help organizations better optimize their email marketing campaigns.

With so many emails being sent in nurture flow, admin email, and marketing campaigns, machine learning systems can identify patterns and optimization possibilities in a fraction of the time it takes a CRM team to sift through the data.

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