Applying AI to e-commerce: how artificial intelligence helps learn consumer preferences and optimize customer experience.
The e-commerce industry has not been left behind by the revolution associated with the development of artificial intelligence. In broader e-commerce today, AI plays an important role in almost every area of store operations, from assisting employees with simple tasks to analyzing extensive data sets. The importance of modern logistics in the e-commerce industry cannot be overestimated, and in this field Alsendo is contributing its part to this revolution.
Artificial intelligence to support customer service
Although chatbots are not a new invention, the accelerated development of artificial intelligence that has taken place in recent years has made them a truly useful tool. More and more consumers appreciate this form of communication with the online store when they are concerned about solving relatively simple, routine problems.
Representatives of the e-commerce industry certainly do not complain about this, as AI makes it possible to engage employees in more demanding tasks, while the chatbot is perfect for simple communication with customers, with the added value of being able to give intelligent product recommendations. It is estimated that the global chatbot market will soon reach $9.4billion!1
Optimized inventory management with AI
From the point of view of large online stores, efficient inventory management has long remained a huge challenge. There is no room for error here. Surpluses lead to inefficient use of warehouse space, while shortages delay delivery or result in a lack of inventory. The problem is that in such a large business it is difficult to efficiently predict demand for particular goods. This all changes when artificial intelligence-based software comes into play to help manage inventory based on delivery times, customer demand and sales history. In addition, AI is able to reduce costs incurred in this area by up to 15%.
The role of AI in shaping pricing policy
Equally huge data sets are being used to drive pricing in the e-commerce industry. By analyzing parameters such as demand, the availability of goods in the market and the prices offered by competitors with the help of artificial intelligence online stores can determine their prices in such a way that they remain competitive but achieve the highest possible margin. In addition, there is software that allows for dynamic, automated changes in pricing policies based on the factors mentioned above.
Personalized search results, or AI-enhanced shopping experience
Online stores nowadays have a solid knowledge of their customers. Before the rapid development of artificial intelligence, it was difficult to use it in an automated way. Today, with AI, it is not as much of a challenge. Smart search results on e-commerce platforms are becoming more common, as well as smart product recommendations based on the purchase history and many other characteristics of a particular customer. Consumers are satisfied with relevant offers, while stores achieve higher conversion rates. A classic win-win situation.
AI-optimized shipment of goods
Automation based on artificial intelligence is also present in logistics, which is one of the cornerstones of the e-commerce industry. At Alsendo, we are fully aware of this. We have developed Innoship software that allows online retailers to automate shipments to their customers. Assignment of orders to individual courier companies is based on priorities entered by the user, such as price or expected delivery time. Innoship users save money, as an identical service provided by two different carriers can differ in price by as much as PLN 40.2