How Artificial Intelligence in eCommerce is Embracing the New Normal

Sanam Malhotra | 12th June 2020

The dawn of a new normal is challenging businesses to abandon legacy systems and embrace technology. As consumers go digital, eCommerce businesses have a golden chance to maximize revenues with artificial intelligence (AI) solutions. Powered by data, artificial intelligence in eCommerce is accelerating operations, boosting sales, and enhancing customer services with significant success.

Let’s take a sneak peek into the post-COVID potential of artificial intelligence services for optimizing eCommerce sales and services.


State of Artificial Intelligence in eCommerce Amid Pandemic

As brick and mortar brands grapple with uncertain times, the eCommerce industry is picking pace with technology-driven solutions. In the run-up to improve operations, enhance services, and increase revenues, eCommerce bigwigs bank on AI and automation amid COVID-stricken markets. The AI-led automation move is pumped by shifting consumer behavior including-

a) A sharp rise in online shopping via eCommerce portals

b) Record 30% high increase in online spending, and

c) Preference to contact-less ways of receiving goods and services


consumer behavior online eCommerce amid covid

A recent Mckinsey Global Research maps tectonic shifts in consumer buying behavior along with key purchase categories across countries.

With rapid developments in cloud computing and AI, eCommerce companies are proactively investing in automated solutions to maximize customer satisfaction. From AI-powered chatbots and personalized offers to intelligent searches and better inventory management, AI is a significant factor behind eCommerce success amid the COVID-19 outbreak. 

Backed by AI, eCommerce and online grocery portals lodged an 81% rise in retail eCommerce sales as revealed by ACI Worldwide research. 

Let’s explore how AI and machine learning are powering eCommerce giants to grab big wins from an arguably downturned market.


Dynamic Applications of Artificial Intelligence in eCommerce

1) Conversational Commerce

Conversational commerce is an emerging AI-led technology that enables eCommerce businesses to interact with their customers via chatbots and virtual agents. With both text and voice-enabled conversations, eCommerce companies can automate customer interactions across digital channels including websites, mobile apps, messaging, and social media platforms.

With studies suggesting that 1 in 5 customers prefer buying online good from chatbots, conversational commerce can significantly boost eCommerce sales by-

a) Handling routine customer queries 24*7

b) Offering personalized discounts for increased customer loyalty

c) Identifying potential leads and automating client follow-ups

d) Reducing cart abandonment with immediate assistance, and more.


artificial intelligence in eCommerce chatbots

As an experiential Chatbot Development Company, Oodles AI built a conversational commerce solution integrated with FB Messenger to target eCommerce customers.

Also read- Exploring the Potential of Conversational Analytics for eCommerce Businesses


2) Personalized Product Recommendations

While brick and mortar sales executives relied on experiential knowledge in gauging customer preferences, AI deploys its data-processing capabilities. In the digital landscape, AI and machine learning algorithms churn large amounts of customer purchase history to master personalized product recommendations. The impact of embedding eCommerce portals with AI-driven personalized recommendations directly impact conversions and business ROI.

For eCommerce product recommendations, AI’s deep neural networks process product images and customer responses to render two major types, namely-

a) Collaborative Filtering– For suggesting similar items to customers who viewed or bought similar kinds of products.

recommendation artificial intelligence in ecommerce

eCommerce giant, Amazon, proactively uses item-to-item collaborative filtering powered by machine learning algorithms.


2) Content-based Filtering– For offering combinations of products that matches a user’s purchase history.

 ai recommender for ecommerce

Artificial intelligence in eCommerce is picking pace with highly personalized product recommendations for both individual and segmented buyers. 

Also read- How eCommerce can harness Deep Learning for Recommendation Systems


3) Data-driven Sales Forecasting

Another significantly effective use case of artificial intelligence in eCommerce is sales forecasting that constitutes the building blocks of business. With the ability to scan through large volumes of historical data, AI can predict upselling efforts. In addition to valuable insights, AI can assist eCommerce decision-makers with the following automated solutions-

a) Accurate lead scoring

b) Better market analysis

c) Optimized matched with demands, and

d) Minimized risk of overstocking.

Contrary to traditional forecasting techniques, AI delivers accurate, cost, and time-efficient predictions about future trends, customer pain points, and demand surge.

Also read- AI-powered Digital Marketing Tools For Post-COVID Business Revival


4) Intelligent Product Search

To deliver seamless user experience, AI is moving past text-based product searches. With rapid advancements in computer vision technology, AI is now facilitating intelligent visual search functionality for eCommerce portals. The technology enables consumers to look for products online with a picture of the item.

ai image classification for eCommerce

eBay and many other eCommerce giants are replacing keywords with visual searches to enhance the customer experience.

Powered by deep learning, visual search employs techniques such as image recognition, object detection, image classification, and more to come up with similar products in a matter of seconds.

Also read- AI-driven Conversions: Computer Vision Applications for eCommerce


Embedding Artificial Intelligence in eCommerce with Oodles AI

In the wake of growing coronavirus concerns, we, at Oodles AI, are making efforts to turn this adversity into an advantage for global businesses. We deploy AI and machine learning to build enterprise-grade solutions that not only automate but streamline business processes to generate maximum value.

For eCommerce automation, our AI team’s capabilities extend to-

a) Virtual assistants and chatbots for websites, mobile apps, and social media platforms.

b) Personalized recommendation engines

c) Predictive analytics for sales and marketing insights

d) Computer vision applications for visual search, and more.

Connect with our AI development team to build robust eCommerce platforms with AI-driven conversions and improved customer experience.

About Author

Sanam Malhotra

Sanam is a technical writer at Oodles who is currently covering Artificial Intelligence and its underlying disruptive technologies. Fascinated by the transformative potential of AI, Sanam explores how global businesses can harness AI-powered growth. Her writings aim at contributing the multidimensional values of AI, IoT, and machine learning to the digital landscape.

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