5 Ways to Leverage AI in E-commerce  

According to Global Market Estimates, the AI Enabled E-Commerce Solutions Market will grow with a CAGR value of around 40 percent over the forecast period [2021-2026]. From improving customer interactions to optimizing operations, AI has evolved into a powerful tool for the E-commerce industry to drive sales and scale their online business. In this blog, we’ll briefly understand the 5 ways you can leverage Artificial Intelligence in your E-commerce business.  

1. Personalized product recommendations 

AI focused personalized product recommendations help identify customer behavior every time they interact with your app. It collects data, analyzes it, and uses it to deliver a personalized experience as well as assists in implementing a data backed marketing campaign. Moreover, it also sends push notifications to users regarding various products available on your online store and assists customers in making a direct approach.  

2. Enhanced customer service 

AI-powered chatbots and virtual assistants support your customer’s needs at various touchpoints along their journey through the app. They use your existing information and resources, like FAQs or knowledge base articles to address low-level questions and issues at any time without making your customer wait. And hence, leaves enough time for your support team to focus on more complex queries.  

3. Customer segmentation 

According to Accenture, “AI systems can explore highly complex and varied options for customer engagement very quickly, and continuously optimize their performance as more data becomes available. This means marketers can set parameters and allow the AI to optimize and learn to achieve precision.” 

Customer segmentation, combined with behavioral data, allows online stores to provide a personalized experience that mimics the customer's favorite neighborhood stores. 

Using AI for customer segmentation helps you better understand targeted customers’ needs and improve productivity and effectiveness of your overall marketing campaign. 

 
4. Smart logistics 

According to Emerging Tech Brew, “Machine learning’s predictive powers shine in logistics, helping to forecast transit times, demand levels, and shipment delays.”  

AI in supply chains allows to deliver the powerful optimization capabilities required for more accurate capacity planning, improved productivity, high quality, lower costs, and greater output, all while fostering safer working conditions.  
 

5. Sales and demand forecasting 

According to Mckinsey, Applying AI-driven forecasting to supply chain management, for example, can reduce errors by between 20 and 50 percent—and translate into a reduction in lost sales and product unavailability of up to 65 percent. 

Efficient inventory management is all about maintaining the right level of inventory that can fulfil market demand without adding to idle stock. Artificial Intelligence helps you make informed marketing decisions regarding ever-changing demands through forecasting, analysis of trends, and real-time data-gathering. 

AI helps E-commerce owners deliver an optimized customer experience on their E-commerce apps. By using collected data, AI lets you make better business decisions and more accurately predict the ever-shifting demands in the market.  

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