Ecommerce has a symbiotic relationship with technology. And it won’t be an exaggeration to say that eCommerce only exists due to the technological revolution brought by the internet. And thanks to the increase in smartphone user base, online shopping is now in the pockets of Homo sapiens.
Now, new-age techs like AI and machine learning is here to take the eCommerce to a whole new level. AI is taking precedence rapidly in a plethora of guises and eCommerce is not an exception to it. Before we get into what’s the role of AI in redefining the future of eCommerce, let’s get to know what is AI and machine learning.
What is AI and Machine Learning?
Artificial intelligence is a broader tech of computer science that concerns itself with building smart machines. These machines then imitate or exhibit human-like behavior. They are programmed devices to learn, reason, sense, and adapt to the surrounding environment and take action or perform tasks with human-like intelligence.
Machine learning (ML) is a subset or application of AI that automatically learns from the experience or data to perform tasks or take action without being programmed. The more data is fed, the more accurate output it can provide. All ML is artificial intelligence, but not all artificial intelligence is ML.
How AI and Machine Learning Will Redefine the eCommerce Businesses
We have seen how augmented reality can be beneficial for eCommerce businesses. Same way, there are many applications of AI and machine learning for online businesses to ease operations. It can help from inventory management to personalize the shopping experience of customers. Let’s see how machine learning is helpful for online eCommerce businesses.
1. Personalize the shopping experience
Consumers of today want to have a highly personalized shopping experience whenever they interact with online shopping brands. The kind of personalization you provide to your customers helps them to stay loyal to your brand. And they are not afraid to find your competitor who will if you can’t.
Machine learning, the branch of AI, will help you deliver high precision personalization to your customers. The algorithms of ML can analyze the behavior of customers and their data to present them with a tailored user experience to each visitor. Not only that, but your website will also present them with unique and personalized product recommendations based on past preferences. Brands like Amazon and Netflix utilize the ML hugely to deliver an excellent personalized shopping experience.
2. Increase Conversions
The next thing you want after recommending personalized products is to convert those visitors into customers. ‘Tis a crucial step for your eCommerce store and as a store owner you will be obsessed with your store’s conversion ratio. And with the help of machine learning, you can boost the conversion rate of your eCommerce store in many ways.
The ML algorithms have natural language processing which helps them deliver smart search results. They can understand what a user wants to search next based on what they have learned from the user’s past searches. These smart algorithms can present genuine results even without the need to specifying the description or anything.
Also, product recommendations will become smarter with machine learning. The powerful algorithms analyze how customers behave and interact with eCommerce sites, their purchases, and the content they engage with. All this will help in presenting visitors with similar product recommendations they have shown interest in before. Thus, making visitors feel more comfortable to shop and increase conversion in the process.
3. Run Relevant Marketing Campaigns
The best promotional campaigns are those that are highly relevant to the target audience. And with the help of machine learning, eCommerce store owners can maintain a level of relevance in their ads and other marketing efforts. Today, eCommerce stores have access to a great amount of information about their customers and visitors and with the help of ML, you can tailor-make your marketing campaigns.
The smart ML algorithms split prospects based on what interests them on your website and segment them so that you target them with personalized marketing efforts. Also, machine learning is truly invaluable in retargeting prospects. The powerful algorithms of ML are smart enough to understand the behaviors of customers to run highly relevant retargeting campaigns.
4. In-House Operational Efficiency Improvements
Machine learning does not only have benefits for improving customer experience on your eCommerce sites. It can also improve the efficiency of in-house processes like inventory and stock maintenance. The powerful ML algorithms can deliver real-time insights that can also improve the efficiency of other operations as well.
Many of the eCommerce brands struggle with maintaining and managing their stock level and inventory management. And with the help of ML, you can choose the best way to do so. Not only that but also it can improve the processes like tax implications, warehouse costs, number of eCommerce sales, etc.
5. Fraud Detection
You might think that due to the advancement in the Internet and awareness about cybersecurity, frauds are not prevalent in eCommerce. But this is not true as fraud continues to grow steadily. And ML technology can help in fraud detection and protection efficiently. The ability of ML’s algorithms to handle & process the sheer amount of data also helps in fraud detection.
They are smart enough to notice transactions that are not genuine. Also, ML algorithms can instantly flag the transaction is fraudulent if something seems off. Not only that but they can detect the payment location, time, and device and can flag it fraudulent if something is unusual about them.
ML and AI-driven processes are becoming the norm of everyday life. They are becoming ubiquitous and their influence is growing day by day. And eCommerce businesses can benefit from ML and AI numerously. It has the power to redefine the future of eCommerce with the capabilities like personalized customer experience, inventory management, increase in conversion, fraud detection, and others.
The experts at Mconnect Media have sound knowledge about the role of AI and ML for eCommerce store owners. Consult the eCommerce experts of Mconnect Media on how you should leverage the ML and AI to redefine your eCommerce business.