Artificial intelligence Technology in E-commerce
If you are an individual who keeps updated about the recent trends in technology, then you will know the content expected in this article. Are you a person who likes to complete the tasks with ease? Then you must be making use of the mobile or laptop for making purchases or paying bills. In fact, it is this habit, that has led to the new of a new industry known as E-commerce. In this article, we will focus on the uses of artificial intelligence technology in e-commerce.
This industry is also known by many names such as internet commerce or electronic commerce. In fact, its description is very short and can be understood even by a layman. In this industry, the goods are bought and sold over the internet. And only digital transactions are used. At present, e-commerce refers to the online sale or online purchase of physical products.
Before going to the details of uses of artificial intelligence technology in e-commerce, let us first know the meaning of AI or artificial intelligence.
This technology comes across as one of the important areas of computer sciences which manufactures machines that can work as well react with humans. Some artificial intelligence activities in recent times are –
Identification of target audience in social media platforms
And many more.
Uses of Artificial Intelligence Technology in E-Commerce
If you are an aggressive impulsive shopper, you will know about Amazon. Although besieged with competitors in e-commerce in various countries such as Flipkart, it is still ruling the roost. The main reason for its dominance in the market is its use of artificial intelligence applications on its website and other online representation sites. In fact, it is Amazon which has set the new standard for online shopping. Its other competitors have now jumped on the bandwagon in making use of artificial intelligence.
The other part of artificial intelligence known as machine learning is used in complex technologies such as enhancing customer experience and identification of fraud.
- Personalized Shopping Experience
There was a time when your fathers were the loyal buyers for a brand cloth. That was in the 1980s. From 2000, the very experience of purchase changed. Online purchase has become a recent trend. Now, every customer (you) want personalized experience while navigating the website. You also want the website to showcase the products you need.
When you try to browse via an e-commerce platform, it collects information regarding your journey on the website. With the help of Google Analytics tool, the concerned team in the website can collect information about your device, location, browser and the time you spend on each page. Based on your preferences and the pages navigated, you will get notifications.
Shall we give you an example? Imagine, you are shopping in Amazon for a wedding dress. Now, after you put in the cart, you will receive a pop-up stating that the customer who bought a similar kind of dress, also bought other products. You will be tempted to go search for the product page. And if the product is attractive, you will purchase it. The revenue is increased for the website.
Use of Artificial Intelligence Technology in E-commerce website.
It is at this juncture, that the AI gets implemented. Now, there will be thousands of customers in Amazon every second shopping all over the world. They will shop for different products, navigate to various pages and buy various items. True, the data is available and can be stored. But how will the analysis take place? It is with the use of Artificial intelligence.
In fact, artificial intelligence just does its duty. But a customer (you) will feel that you are getting the respect and personalization experience. This is what makes the difference in recent times.
By making use of permutations and combinations, a website such as Amazon can give the best experience to the customer. They can also make changes in the prices, offer discounts as per the demographics and ensure that the online store is stacked by items which are more preferable by the customers.
- Fake Reviews
Let us imagine the situation. You have a company which offers laptop repair services in Mumbai. Other than offer repairs, you also buy and sell computers. To increase revenue, you have tied up in partnership with a company which provides the best home appliance repair services in Mumbai. Now, let us imagine how new customers can become a loyalist to your business. If they are searching for the best laptop repair technician in Mumbai, and they land up on your website or your partner website, it is the reviews that will play a major part. They will read the online reviews and then decide to hire or not. Buts you know, there are many fake reviews in websites. Last year, the battle for truth went to the zenith as many customers became angry about the fake content in reviews.
Now, similar to artificial intelligence application designing companies, a new industry will grow which can differentiate fake reviews from real reviews. It can happen. But please understand, that real reviews are always more in number than fake reviews. There is a new firm called Aspective which makes use of the other complex form of AI, machine learning to analyze reviews.
Artificial Intelligence Technology in E-commerce Websites
Now, e-commerce websites have adopted another change. In some websites, they used the average of all reviews to recommend a product. At present, they have changed their practice. One single negative review is given importance, especially if the person is a verified customer. This kind of practices is done only by artificial intelligence applications. So, reliable reviews come to the top.
- Prediction Sales
Four decades ago, the businesses did not have any prediction forecasts on what the customers wanted. In fact, it is the movie stars and their dresses, which played a major factor in fashion trends. But now, e-commerce websites have changed the very face of online sales.
Let us imagine the situation. A famous Indian festival is coming the next month. There will be purchases of new cloth materials all over the country. Now a website such as Flipkart can announce the same discounts and offers in all the States in a similar fashion. The reason, what works in Karnataka regarding the dresses, colors, and patterns will not work in Gujarat. So, the analysis has to be perfect. So an artificial intelligence can tell the concerned State digital marketing team, the type of colors, dress patterns that are more preferred by customers in a particular State. If they stack similar kind of dresses online, then they can generate more revenue.
Artificial Intelligence Technology in E-commerce Websites
With AI applications, the usages are
- The company gets to know about the products that are not popular
- There are some products that can be popular only for a certain time
- Accurate predictions regarding sales of products during a certain event
The above-mentioned article gives three uses of artificial intelligence in e-commerce. Did you find the article interesting? Then please put a comment in the Reviews section.
Agreed, there are other uses of AI in websites such as chatbots in customer service, customer relationship management systems, and visual search. We plan to include the content in the future. So stay tuned by subscribing to our newsletter.