With the ever-changing trends in technology, it’s hard to imagine what’s in store for the future. Nowadays, Artificial Intelligence (AI) and machine learning are used widely across various fields and industries like healthcare, transportation, automobile etc.
But what about eCommerce? How far have we come in this field with AI, and what could we possibly expect in the future? Let’s see what experts have to say on this topic and let’s explore some of the ways that AI could impact eCommerce further in the future!
Personalized Customer Approach
Personalization has always been important in e-commerce. But it will become even more important as we enter a world where artificial intelligence plays a larger role. Being able to personalize your website on a mass scale will be essential. Especially if you can do it while still providing what customers are looking for. Whether that is convenience or good value.
The best way to get started with personalizing your site is by using data from customer interactions across channels. For example, if someone browses a product page but doesn’t add it to their cart. Then you should use an email campaign to target them with similar products based on their previous behavior.
It’s also worth considering which data sources might provide insight into how customers shop online. Such as voice assistants like Alexa or Google Home. These tools are becoming increasingly popular and they could offer information about what people want to buy before they have thought about it themselves.
This could help you tailor your content so that you are offering relevant information when people need it most. Ultimately, getting personalised recommendations right will mean improving your conversion rate. If you make things easier for customers to find exactly what they want then they are much more likely to complete a purchase.
And don’t forget that AI won’t take over all aspects of your business. There will still be plenty of room for human input. You may decide to focus on certain aspects of your business rather than others. Perhaps specializing in areas where humans excel such as creativity or empathy. Whatever strategy you choose, it’s clear that personalization will play a big part in e-commerce going forward.
Chatbots and Virtual Assistants
The impact that chatbots and virtual assistants are having on online retailers is astounding. Customers can use these tools to ask questions, find answers, make purchases, or simply get entertained by bots that act like humans.
Think about how much time you spend shopping online each week; why wouldn’t you want a virtual assistant to help do all that heavy lifting for you? These technologies will continue evolving in order to provide retailers with new, engaging ways of interacting with customers.
In 2022, we’ll see even more natural language processing capabilities in virtual assistants. So they can understand exactly what we mean. When we say something like I need a pair of black shoes that goes well with my dress pants. And as voice-activated technology becomes more prevalent. We’ll see an increase in the number of people using it to shop online—especially while driving!
As always expect to see more innovation from emerging markets, than from traditional powerhouses like North America and Europe. With companies in India (Flipkart) and China (JD) leading innovation in ecommerce right now. We predict that their competitors will be following suit soon enough.
For example, JD recently announced plans to launch smart stores in China. Where customers can walk into physical locations and have their voices matched with products through facial recognition software. They can then purchase items via mobile devices without ever having to interact with another human being. That’s just one way that AI will change online retail over the next few years.
Increase in Voice Search and Voice-Enabled Shopping
Voice is poised to become a more common way for people to interact with their devices, whether they’re shopping or otherwise. By 2022, Gartner predicts that 30% of online sales will be conducted by voice—compared with just 1% in 2020. It’s an exciting time for artificial intelligence (AI) technology!
For example, Google has recently expanded its Knowledge Graph feature so that it can predict answers before users even ask questions. This means that when you ask your device
What’s today’s weather? it won’t simply tell you; instead, it will display a graphic showing what kind of day you can expect. It also means that you can use your voice to order things from Amazon without having to click through multiple screens or type out long URLs. And, of course, there are many other ways that AI is transforming e-commerce.
For example: A trend toward smart stores: Stores have traditionally been designed to optimize efficiency. But now they’re being redesigned around customers’ needs. For example, retailers like IKEA and Target are using smart displays powered by machine learning algorithms to better understand shoppers as they move throughout stores.
They then use that information to customize product recommendations based on each customer’s preferences and purchase history. In some cases, they’re even able to create individualized ads based on a shopper’s facial features and clothing choices. These kinds of strategies should lead to increased satisfaction among customers and better conversion rates.
More Intuitive and Engaging Visual Shopping Experiences
Artificial intelligence (AI) is making it easier for shoppers to see, touch, feel, hear and smell a product before they purchase it. Some websites are already experimenting with Visual Search that allows customers to snap pictures of objects in their homes or places they visit—from clothing to sporting goods—and find similar items online.
As more retailers adopt machine learning algorithms and deep learning techniques. Visual search will become even more intuitive as computers better understand what consumers want to buy. Shoppers won’t have to try and describe what they’re looking for; instead, they’ll simply take a picture.
At checkout, some companies are already testing new tools that use image recognition software to identify specific products within an image. The ability to quickly make purchases by taking photos rather than typing out long descriptions will also increase mobile conversion rates since users won’t have to wait around on traditional web forms.
This technology could allow users to snap images of shoes from Instagram and then click through to purchase them on Zappos. For example, In addition, brands will likely start using AR technology so shoppers can visualize how products would look in their own home or office.
For instance, Ikea has already experimented with virtual reality shopping apps where customers put together furniture virtually before buying it online. Customers may soon be able to do something similar while browsing their favorite retailer’s website.
Increased Use of Real-Time Data Analytics to Optimize Operations
The evolution of AI will be accompanied by an explosion in real-time data analytics. In 20 years, all companies will have some form of intelligent assistant which they will use to optimize their operations.
For example, retailers can build a chatbot that listens for customers’ questions and provides them with answers at lightning speed. Personalized recommendations based on previous purchases are also possible through reams of collected data. An intelligent assistant can use its database to make suggestions about what else a customer might like based on what he or she has already bought.
It may even go so far as to predict when someone is about to run out of something and offer replacements or alternatives. This kind of service could increase revenue by up to 25%.
Retailers who take advantage of these possibilities now stand to gain a competitive edge over those who don’t. In 2022, there will likely be no major retailer without an intelligent assistant. Some estimates suggest that nearly $5 trillion worth of commerce globally will be driven by artificial intelligence by 2025.
Growth of Direct-to-Consumer Sales
Direct-to-consumer sales—often facilitated by social media, data collection, and artificial intelligence—are quickly growing. While they’re not necessarily new, these direct lines of communication between merchants and consumers are changing how we shop.
According to a recent study from Bain & Company. More than half of all shoppers have bought something online after seeing it on Instagram or Facebook. If you’re selling goods directly to customers online (without going through a third party like Amazon). Then you might be able to capitalize on that trend. And if you can get people talking about your products on social media (as many companies do) then you might be able to use that as a way to grow your business even further.
For example, Everlane has built its brand entirely around telling its customers exactly where their clothes come from and why they cost what they do. The company also uses social media very effectively to reach out to potential customers and get them interested in their clothes.
It’s definitely an interesting approach! This could be a great avenue for you to explore if you want to sell your products directly without having to go through other retailers. But, there is a lot of competition out there right now—so it may take some work to stand out.
AI is Defining the Future of eCommerce
Artificial intelligence (AI) is already playing a significant role in how people shop. As AI continues to advance, it will change what it means to be an online consumer. From finding relevant products, tracking your expenses, through payment processing and more, artificial intelligence is redefining how we shop.
Here’s a quick rundown on how artificial intelligence is impacting online retail today. As well as what you can expect for years to come.
A Quick Overview of AI in Ecommerce: Artificial intelligence has had a long history with commerce. Starting with self-checkout lines at grocery stores decades ago. In recent years, technology has advanced significantly. Making it possible for consumers to find exactly what they want without leaving their home or clicking buy now without ever talking to another human being.
Here’s how artificial intelligence is impacting online retail today, as well as what you can expect for years to come.
What You Can Expect From AI in 2022: As artificial intelligence continues to evolve, there are some trends that experts predict will become more common over time. Here’s a look at some of those predictions and how you can prepare your business for these changes over the next few years.
Examples of Artificial Intelligence in Ecommerce Today: If you’re curious about how artificial intelligence is impacting online retail today. Here are a few examples to help illustrate just how advanced technology has become. How AI Will Impact Online Shopping in 2022: While it may be hard to imagine what shopping online will look like five years from now. It’s easy to see how advancements in artificial intelligence could change everything.
Consider how much different life would be if consumers didn’t have to spend hours searching for products or comparing prices before making a purchase.
A Quick Wrap
Artificial intelligence is quickly becoming a normal part of everyday life. When it comes to online shopping, Amazon has already led the way with its use of AI chatbots and voice-recognition systems. And now, as millions more consumers make their purchases on mobile devices. It’s likely that our experience will become even more personal—and more reliant on artificial intelligence systems. With that in mind, we decided to take a look at how AI is changing ecommerce today and what we can expect from it over the next few years.
