Growth of AI in E-Commerce Business
Do you realize how easy our lives have become due to online services? Right when Jeff Bezos started an online bookstore in 1995, no one would have thought how far Amazon would go. Today, the company has become one of the largest eCommerce retailers in the world, offering millions of products across dozens of categories and serving millions of customers worldwide with its fast and efficient delivery services. People are now so used to searching for products online that they spend hours on eCommerce applications and buy the desired products as and when required. What engages people more are the lucrative discounts related to various products that they don’t get in physical stores.
E-commerce companies continue to optimize their processes and offer a high-quality user experience to their customers. For example, you now get product recommendations based on your search history that you are more likely to buy. Moreover, some applications show you comparisons with similar products and their price range. Using all this information, you are able to make more informed decisions regarding your purchases. But have you ever wondered how eCommerce applications are able to give you such accurate recommendations? You even receive targeted ads on your email from the company. Well, the technology working behind the scene is machine learning, an important part of Artificial Intelligence or AI.
The adoption of AI in the eCommerce industry has led to many benefits, like optimized business processes, better supply chain management, understanding of customer behavior, giving product recommendations, increased engagement on the application, reduced costs, and increased customer satisfaction. Let us understand how AI is increasingly being used in the eCommerce industry to achieve the desired business outcomes through this article. You will also understand how enrolling in an online AI program can help you learn more about this powerful technology.
Applications of AI in the E-Commerce Industry
Here are some of the areas in eCommerce businesses that are benefitting from the use of AI.
Dynamic Pricing
It is common to see price fluctuations on eCommerce websites. Prices often change due to seasonal offers, payday sales, sales on various festivals, and so on. With the use of AI, retailers can dynamically adjust their prices in real time based on factors like customer demand, product availability, and competitor pricing. Thus, retailers can maximize their profitability even while maintaining their competitiveness. AI algorithms can also monitor market trends and give useful insights to retailers regarding prices.
Personalized product recommendations
Note that not everyone will get the same product recommendations as you on the eCommerce applications. This is because AI algorithms can analyze customer behavior and preferences and suggest products that are more likely to appeal to individual customers based on their past purchase history, browsing behavior, and other data points. AI can also make recommendations based on specific product attributes, like color, style, or brand. They can also take into account external factors like the customer’s location or time of the day to make more relevant recommendations.
Better inventory management
Wouldn’t it be better if a company knew how much the demand for a product was and stocked it accordingly so as to optimize the inventory process? Well, AI can help here by streamlining and optimizing the logistics till the delivery and returns phase. By analyzing large amounts of data, AI models can make accurate predictions about demand and stock levels, thereby reducing waste and improving efficiency. By using AI-powered logistics solutions, eCommerce retailers can ensure a faster, more reliable, and cost-effective delivery experience for their customers.
Better insights into customers
AI can highlight those insights about a customer that a normal person may easily ignore. AI models can analyze customer behavior data to identify patterns and similarities among customers. This can help retailers group customers together based on their behavior, such as customers who have made large purchases in the past or those who buy products frequently. This customer segmentation can also be done on demographic data like age, gender, location, and income. By analyzing such data, retailers can target a specific group of customers with tailored marketing messages and promotions.
Apart from these areas, AI is being explored in several other use cases to optimize the overall customer experience in eCommerce applications. Let us now understand how you can learn AI.
AI Training – Should I Take it up?
Now that you have a clear idea about the potential of AI in the eCommerce industry, you must be curious about how this technology works. Well, AI skills are in high demand, and once you are able to master them, you have a chance to become one of the highest-earning professionals in the world. You can gain job-ready skills in this domain by enrolling in an online AI program. There are many resources available on the internet to help you learn AI from scratch, and that too with the comfort of your home. You don’t even have to pause your professional work to focus on these courses. Online training programs are specifically tailored to suit a working professional’s schedule. So why not learn the ins and outs of this powerful technology and establish your career in the ever-growing world of AI?
