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  • Role of Artificial Intelligence and Machine Learning for E-Commerce Sector

    Published: Apr 30, 2021  |   | 
    Role of Artificial Intelligence and Machine Learning for E-Commerce Sector

    Artificial Intelligence (AI) and Machine Learning (ML) have disrupted all major sectors, and a rapidly growing eCommerce sector is no exception! Both these technologies have played vital roles in the evolution of eCommerce to mCommerce. There is no exaggeration in mentioning that AI and ML are the game-changers for this sector as they can take the customer engagement and overall shopping experience to a new level.

    Servion Global has predicted that 95% of all customer interactions will be managed by AI technology by 2025. With this, machine learning has also started making huge waves in this highly competitive sector. Big players like Amazon, Alibaba, and Shopify leverage the benefits of ML to remain market leaders. Machine learning consulting can also assist small to mid-size eCommerce companies to integrate this technology into their system.

    Even some top eCommerce development platforms like Magento, Shopify, and WooCommerce have started using ML-powered algorithms for offering highly personalized experience and better product recommendations. Shopify has its dedicated AI-based eCommerce fulfillment network. In the coming years, both these technologies will be mainstreamed in the sector and put significant impact on sales and customer interactions.

    Let’s understand how AI and ML can benefit sales and other processes in the eCommerce sector.

    Both AI and ML technologies unleash the potential of data for offering actionable insights and making real-time decisions. The economic impact of these technologies include-

    ● Product Enhancement

    It is imperative in the eCommerce sector to monitor the ever-changing expectations of customers and market trends. If an eCommerce company knows about the customer’s needs and expectations, it can come up with enhanced products to address these needs effectively. E-Commerce companies can take assistance from AI and ML technologies for analyzing trends and customer feedback or suggestions. On the basis of this analysis, it is easy for eCommerce business owners to make products better and create new products.

    ● Informed Decisions

    In a highly competitive and challenging eCommerce business, you need to make informed decisions to stay ahead of the curve. Thanks to accurate forecasting based on demand analysis and real-time data, you can get actionable insights for your business. The AI technology also offers predictive analysis feature to understand the demand pattern of specific products in the future. You can keep your eCommerce business ready to meet this demand so that there will be no shortage of any trending products.

    ● Process Optimization

    This is one of the biggest benefits of integrating AI and ML into an eCommerce business. AI solutions can assist you optimize ordering and delivery processes by brining automation. AI technology is useful in optimizing warehouse and inventory-related processes as well so that you can easily manage the supply chain. With automated ordering and delivery processes, there will be reduced chances of human errors and your customers can get a pleasant shopping experience every time. In a way, process optimization can give a boost to your business.

    ● Personalized Experience

    While facing intensifying competition, you need to focus on providing personalized experience to attract and retain your customers. Be it an advanced search with filters or personalized recommendations, AI and ML-based features can always give your eCommerce app or website an edge over competitors. All you need to consult an eCommerce development company.

    Also Read- AI and Automation Trends to Watch for Improving Customer Services in 2021

    ● Improved Customer Services

    In this age of hyper-personalization, it is of utmost importance that an eCommerce business gives excellent customer services. AI-powered chatbots can make it possible on a 24/7 basis. Your eCommerce website and app can have chatbots to record and resolve the customer’s queries with personalized approach. Chatbots make it easy for your customers to post their queries any time and get them resolved in a short time. Such improved customer services can convert your customers into loyal customers, and they can spread a word of mouth for your business.

    ● Workflow Automation

    It is necessary to take your eCommerce business to a new level by automating workflow. It not only reduces operational costs but also saves a lot of time and effort. You can manage core business operations with limited resources and bring flexibility to meet future demands through workflow automation. AI and ML for eCommerce sector can assist you to automate repetitive and mundane processes across various departments.

    ● Fraud Prevention

    AI and ML technologies are smarter innovations to find fraudulent transactions. You can protect your customers’ confidential data by identifying any suspicious activities instantly using AI-based advancements. It makes online payments or transactions more secure and your customers can put trust on your business easily. Over 95% of all purchases will be made online by the end of the year 2040. In such a situation, it is necessary to prevent fraudulent transactions.

    ● Exploring New Markets

    AI technology assists eCommerce companies to build buyer personas and enable them to do extensive market research. In a way, you can identify and explore new markets for expanding your business. E-Commerce business needs continuous monitoring and vigilance for grabbing new opportunities and both AI and ML technologies enable you to meet this objective effectively. As a result, you can grow revenue and sales over the period while increasing the size of your eCommerce business.

    ● Effective and Smarter Marketing

    With actionable insights and real-time reporting on various business aspects, you can initiate and run effective marketing campaigns. As AI and ML technologies are based on data analysis, you can get valuable information on the customer’s buying patterns and their interests across different demographics. You can easily identify the target audience and plan your marketing campaign accordingly for optimum outcome.

    AI and ML technologies can analyze various types of data to extract business-oriented insights. Various data sources useful for these technologies include call center and customer support transcripts, customer reviews, site usage analytics, and purchase history. Rich data sets related to the customer's interactions with your eCommerce website or app can be valuable assets for your business.

    Concluding Lines

    In a nutshell, an eCommerce development company can integrate AI and ML-based features to save millions of dollars for eCommerce companies. Machine learning consulting can assist you to explore other opportunities and keep your business updated with advancing technology. For the thriving eCommerce sector, sky is the limit when it comes to scope and opportunities. You can grab them efficiently using the AI and ML concepts.

    Silver Touch Technologies is a leading IT solutions provider. We integrate advanced features of AI and machine learning in eCommerce solutions. Do you want to grow your business online with user-friendly and innovative eCommerce websites and apps? Simply drop us a line at We will get back to you with a complete roadmap for your business needs soon.

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