7 Ways E-commerce Businesses Use AI to Ramp Up Online Stores

Last month Amazon ramped up its AI investments to $1 bn, boosting the productivity of its logistics network. Similarly, Walmart is integrating new technologies to beat the competition. Effective eCommerce app development services facilitate such e-commerce giants and brands like Alibaba and Flipkart to convert into full-blown AI-driven businesses, extending their horizons of setting industrial records. AI is considered a key factor by 84% of ecommerce businesses. 
It is very clear that ecommerce has now taken the front seat in adopting AI technologies. From providing personalized product recommendations to pricing optimization, AI business strategies are generating higher revenues and helping companies reduce costs. Reports reveal that in 2021, online purchases contributed up to 17.8% of total sales. In 2025, it is estimated to reach up to 23% of total purchases.  For example Amazon’s “You Might Also Like” section recommends AI-powered algorithms. And it is amazing to know it contributes to 35% of their sales. Amazon has mastered the skill of predictive analysis and knowing the desires of users before anyone can ever know.
The AI surge in the ecommerce industry sends a significant message that products alone cannot attract customers anymore. Bringing customers online into their brands needs entrepreneurs to cut through the noise. Through expert mobile app development services, you can create such robust ecommerce app that can attract the right set of audiences for selling your products. The article tells you how AI is helping retailers and businesses evolve in their journeys to attract customers by offering personalized experiences. In addition, several other aspects need AI support to enhance business competence.

Different Types of AI Used by Ecommerce Companies

Machine Learning

With machine learning algorithms, companies can perform various ecommerce operations like sales optimization, fraud detection, improved customer engagement, and supply chain management. Ecommerce platforms like Amazon, eBay, Walmart, etc. can make predictions, perform data analysis, forecast sales trends, automate logistics, and increase overall business performance.

Data Mining

All ecommerce giants are dependent on massive data. They use it for various technical and non-technical purposes. With AI, it becomes easy for them to collect, analyze, and harness the details of the data for making informed decisions and to produce actionable information. Any sort of products that are recommended based on past behavior get recorded easily for future reference.

NLP (Natural Language Processing)

NLP technologies facilitate chatbots and virtual assistants to understand and respond to users’ queries in natural language. This improves customer support and increases interaction as they get fast and perfect answers to all their questions 24*7 regularly.

Computer Vision

Computer vision algorithms help computers identify and segregate visual images. Users can seamlessly perform several operations like visual search and image recognition. It helps them search for products by using images. Also, the predictive analysis contains generating techniques that can harness historical and real-time data to predict customer behavior and their changing demands.

7 Ways How Ecommerce Brands Harness the Power of AI

1. Personalized Experiences

AI promotes personalized experiences for users of online stores. It uses data-driven insights to present tailored experiences. According to user search history and preferences, the search engine generates search results, leading to showing products with great efficiency. In addition, it also adjusts prices in real-time, assisting the users to make informed decisions and also responding to queries. Everything is based on the customer location and AI rapidly modifies content and provides various offers that are relevant to the latest trends in the local market.

2. Chatbot

Chatbots have become more popular in the world of ecommerce. It helps ecommerce brands to leverage operational efficiency, deliver unparalleled customer experiences, and generate higher sales. Through chatbots, users get day and night multilingual options that can help them track orders and get order updates. All this is made possible without any human intervention. Whatever kind of chatbots you prefer, they will help users to respond in relatable language.

3. Increases Brand Credibility

Ecommerce businesses can only survive through continuous customer support. AI facilitates amplifying better customer experiences. It can provide the exact information that users need to know and also can comprehend personal user preferences. In addition, AI also ensures fairness and transparency by formulating dynamic prices that are acceptable to users and minimizing misrepresentations. AI has a significant impact on raising the standards of quality, delivering information, and instruction in the world of ecommerce. Hence, the entire communication channel has become quite effective between customers and companies, fostering stronger relationships.

4. Predictive Analysis

AI plays a crucial role in customers’ journey from becoming aware to becoming loyal to a brand. In all customer phases, AI tracks and monitors the data universally and skillfully. It hones the skills to target various offers to the customers and curates persuasive messages that can be reused for the audience. In addition, with AI predictive analytics, businesses can easily understand customer buying patterns and other demographic details to make realistic decisions.

5. Enhanced Logistics

With AI algorithms, ecommerce businesses can enhance any section of the supply chain and fulfillment procedures. It can start from managing inventory, and extend up to providing personalized shipping options to users through automated order fulfillment. Nowadays, most online stores harness AI to minimize the wastage of resources and help customers get their products faster.

6. Fraud Detection and Prevention

The power to attract customers in stunning ways comes with a cost. Several fraudulent activities also disrupt ecommerce businesses, hampering their overall productivity. For example, chargeback, triangulation, and interception frauds are very common nowadays. However, the profound impact of AI and its stellar security mechanisms helps prevent fraud by implementing stricter security measures. Intelligent machine learning algorithms can find out the hidden patterns in the data and can build fraud detection systems that will give a red flag to all suspicious activities.

7. Omnichannel Advantage

Every ecommerce online store must have an omnichannel marketing approach. Customers change their preferences with the changing scenarios. Hence, AI algorithms help companies focus on changing customers’ attention and tracking their shopping journey. It can curate various customer behaviors and track their buying patterns by assimilating multiple channels.
Even if the customers use multiple platforms, omnichannel marketing will track their buying patterns and provide seamless experiences across all channels. Through this integrated method, customers get the benefit of accessing more product choices. With AI integration into mobile applications, businesses can ensure to provide user-friendly websites and more engagement on social media platforms. Hence, omnichannel marketing empowered by AI has increased the brand’s lifetime value and has optimized ROI impact.

Final Thoughts

Whitelotus Corporation provides ecommerce app development services by building lifetime relationships with leading enterprises. We harness the power of AI technologies and inculcate stronger relationships between enterprises and their customers. We drive operational efficiency, bring in more adaptability, and promote flexibility into the systems. You can hire dedicated developers from our team to build stellar ecommerce mobile applications that are backed by powerful AI technologies. Our services have so far created a lasting impression in the minds of the users as we always strive for your services to stand out from your competitors. Integrate AI-based features into your ecommerce app today and elevate your business to the next level.


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