The rapidly growing e-commerce industry is experiencing a significant transformation with artificial intelligence. With algorithms that mimic human-like behavior and expand the scope of data from existing customers, e-commerce companies can shift their digital marketing budgets to artificial intelligence, achieving near real-time results.
With the pandemic, the e-commerce sector increased its growth rate. The sector, which is expected to grow by 20 percent globally in 2020, recorded a 5-year rate in a year according to IBM’s analysis. Growing 18 percent annually between 2014 and 2019 and reaching a volume of 3.5 trillion dollars, the sector is estimated to reach a volume of 6.5 trillion dollars in 2023.
E-commerce is undergoing a great transformation as it grows. The driving force of this transformation is artificial intelligence. Artificial intelligence, which is expected to contribute 15.7 trillion dollars to the global economy by 2030; In a sense, it changes the DNA of e-commerce with chatbots, virtual assistants, search engines and CRM applications. Companies focusing on e-commerce are increasing their artificial intelligence investments and allocating a large part of their digital marketing budget to artificial intelligence-based applications.
Closer and deeper analysis
Many organizations state that the use of artificial intelligence in e-commerce returns to companies as increased sales, customer satisfaction and efficiency. Stating that both in-house and third-party (outsourced) artificial intelligence applications allow personalization of shopping and improvement of user experience, companies that analyze their customers more closely and deeply with artificial intelligence and offer personal value according to their consumption habits, which it also gets ahead in meeting customer needs.
They make effective product recommendations
Artificial intelligence-supported virtual assistants, specially developed for e-commerce, can create a shopping list from the shoppers’ natural voice and even order online shopping. On the other hand, virtual assistants, who can recognize both text and voice speech thanks to the natural language processing technique of artificial intelligence, can instantly access more comprehensive information about customer behavior than humans, so they can make effective product recommendations. These assistants, who can provide stock information instantly, can direct customers to human representatives when required or on demand.
According to researchers, personalized product recommendations developed by artificial intelligence applications increase conversion rates by 915 percent. Thanks to artificial intelligence in e-commerce, the return rate of products purchased is also decreasing. The world’s leading fashion and cosmetics brands are using AI-based omnichannel solutions to reduce the gap between in-store and online customer experiences.
Chatbots (ChatBot) increase sales
Chatbots are also an important tool for customer satisfaction in e-commerce… Artificial intelligence-supported chatbots that instantly answer the questions frequently asked by users increase sales as well as satisfaction. The Chatbots market is expected to reach a volume of $1.2 trillion in the next 10 years.
Research shows that internet users spend about 5 hours to find and buy the product they need at an affordable price. Users feel the need to visit hundreds of products and e-commerce sites and make comparisons to find the most suitable product. At this point, artificial intelligence paves the way for e-commerce. Artificial intelligence visual search technologies deliver the desired product to users within seconds.
Artificial intelligence also provides deep customization for e-commerce with a multi-channel approach. New AI engines hold on multiple customer touchpoints to help businesses analyze how customers interact online. Whether it’s a mobile app, website or an email campaign, the AI engine constantly monitors all devices and channels to capture a holistic perspective. In this way, it creates customer experience by analyzing the customer 360 degrees.
Transformation will speed up
Today, while artificial intelligence changes the DNA of e-commerce, the effects of this change will be felt more closely in the upcoming period. All organizations that want to improve the customer experience in e-commerce will try to benefit from artificial intelligence and sound technologies as much as possible. According to analysts, 85 percent of consumers will process transactions without contacting a person in the next few years. The gains made by companies such as Amazon and Netflix that have successfully used personalized marketing will affect other companies as well. Amazon’s sales increase of 29 percent in the products offered to its customers with artificial intelligence, and the 75 percent time savings of Netflix’s recommendations developed with artificial intelligence will enable these examples to increase even more.