You may not have noticed, but artificial intelligence and automation have been transforming the eCommerce landscape in recent years. Seeing as the technologies are relatively new, it will be interesting to see just how much more they revolutionize the world of eCommerce in the coming decades.
Automation enables eCommerce business owners to automate certain tasks, which can help to boost productivity and profits; and provide more time that can be spent on other important areas of the business. Artificial Intelligence (AI) is being used in eCommerce in various ways; not least, as a way of collecting and analyzing data, which can then be used by business owners to make better decisions and more accurate predictions.
Automation in eCommerce
Automation has made eCommerce a more hands-off process for entrepreneurs, concerning various aspects of managing their businesses. For instance, the dropshipping business model is largely based on automation. You simply set up an eCommerce store and let the software take care of all the order fulfillment details and operations. There are various automated dropshipping tools, including task automation tools, customer service tools, and product management tools. With most of your dropshipping business being automated, you can spend more time on things like branding and marketing your business.
Other types of automation used by eCommerce businesses include automated bookkeeping and sending automated emails to customers for various purposes, such as reminding them they have abandoned their shopping carts. Automation tools really have revolutionized the eCommerce landscape.
AI in eCommerce
Like automation, AI has many uses in the world of eCommerce. Indeed, AI technologies have been majorly transforming the eCommerce landscape. AI-enabled dynamic pricing is one thing that has revolutionized internet shopping. The strategy changes a retailer’s product price based on supply and demand. With access to the right data, the software can predict when it is best to offer a discount. Automated pricing engines can also identify competitive prices for products, which is helpful to shoppers.
Another way in which AI has been changing eCommerce is via product recommendations. Sophisticated AI algorithms enable customers to be connected with the products that fit their specific profiles. AI is also used in remarketing, which is a way of connecting customers who have visited your eCommerce site but have not yet made a purchase.
Virtual assistants and chatbots would not exist without AI, so customer service has been enhanced dramatically, thanks to the AI technology. By offering more efficient customer support via things like chatbots, customer service becomes enhanced. In turn, that leads to customer retention and higher sales.
When it comes to using AI as a way of collecting and analyzing data, there are three key areas: data mining, natural language processing (NLP), and machine learning. Data mining gathers current and historical data so that informed predictions can be made. Natural language processing focuses on how computers interpret natural human language. Machine learning uses a collection of algorithms to apply past experiences or provide examples to solve problems. To give you an idea of how valuable those areas of artificial intelligence have been, Amazon, the behemoth of eCommerce, utilizes AI and related technologies for things like improving product selection and optimizing logistics.
Both AI and automation tools provide eCommerce businesses with many benefits. The technologies allow eCommerce businesses to have increased customer retention, more accurate targeted marketing, and a more efficient sales process, to name but a few advantages. And, as shown above, AI and automation also benefit customers in various ways. At the end of the day, AI and automation tools are helping to make the online shopping experience easier for all concerned.
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