AI technology is everywhere, transforming how we work, communicate, and even shop. You can also harness these AI-driven tools and improve your online shopping experience in areas such as predictive inventory alerts, search processes, and price tracking. Read on to learn 6 major ways AI is making online shopping smarter.
1. Smarter Search Processes
With AI being present, you almost do not need to search for each item before they are presented before you. In any case, AI can provide relevant search results for you as you shop. AI has sophisticated algorithms and search functionalities that can help in product categorization and filtering, the narrowing down of options, and the comparison of features.
Overall, it is faster and easier for you to find the exact product you’re looking for. For instance, as a Walmart customer, you can tell your voice assistant what item to add to your cart, and the assistant will round them up for you. Besides, a GenAI search tool by Walmart and Microsoft may soon make it possible for you to receive a list of relevant products based on the project or event you’re planning.
Learn 6 Costly Content Marketing Mistakes to Avoid for Success
2. Precise and Personalized Recommendations
It’s no coincidence that online stores seem to “know” what you’re interested in. As a merchant, you would be losing out on a lot of sales opportunities if you do not offer user-friendly and personalized search experiences to prospects. A major way to go about it is to leverage AI-powered analytics and the resulting insights gained from data to improve your personalization strategies.
GenAI algorithms can analyze the browsing history, click-throughs, purchasing behavior, and preferences of customers. Next, AI creates personalized recommendations by dynamically presenting products or brands to the customer. Furthermore, these recommendations precisely match the interests, needs, and pain points of customers in real-time while they’re browsing and searching.
Related: How to Choose the Best Affiliate Programs for Your Niche
Ultimately, these personalized recommendations help to increase customer engagement, and encourage repeat purchases, thus boosting conversion rates. Again, as a merchant, you can use personalized recommendations of products as an opportunity to cross-sell or upsell your products. You can also offer discounts to customers based on the category or brands they prefer.
3. Improved Customer Service & Support
Brands are using top-notch customer service to differentiate themselves from their competitors.
AI-Powered Chatbots
Providing excellent customer service is a key differentiator in today’s competitive market. You can simply interact with AI-powered chatbots and virtual store assistants. Today, these tools make online shopping so much smarter and more user-friendly because you can receive personalized product recommendations and get precise answers to your questions on product use.
In addition, you can reserve items for pick-up, track orders, and make inquiries about return policies. For example, a chatbot can swiftly guide you in your quest for a reliable used car that is on sale.
Platforms like Sephora and eBay use AI chatbots to answer customer questions, offer beauty tips, or provide recommendations. These bots can guide customers through the shopping process, help them track orders, and even assist with returns.
Related: Transforming Home Management with AI Assistants: 6 Key Benefits
Voice Assistants
Voice commerce is on the rise, with assistants like Amazon’s Alexa and Apple’s Siri enabling customers to search for products or make purchases using simple voice commands. This has helped increase the convenience and speed of online shopping.
Augmented Reality (AR)
Innovative technologies such as augmented reality (AR) are also making an impact in the world of online shopping. You can try on products such as clothes or even visualize how your furniture will look in your home before you make a purchase. This interactive feature makes online shopping feel more immersive, helping customers feel confident in their purchase decisions.
4. More Reliable Supply Chains
A strong supply chain ensures that products are available when customers want them. Brands with good supply chains are able to get their products to their customers on time. They are also better able to conserve resources. This explains why many brands are adding AI capabilities to their service offerings. With AI, they can improve functions such as procurement, product tracking, and process optimization. They can also make better demand forecasts and avoid bottlenecks in the supply chain.
For instance, Amazon’s AWS Supply Chain platform has an embedded Q chatbot that can use real-world data to run risk scenarios and predict potential delays, therefore reducing supply chain costs. Moreover, Predictive AI inventory and alert features have made it possible for you to receive notifications on stock availability, restocks, and price drops. As such, you can quickly purchase desired products immediately when they become available.
Also read: 5 Steps to Conduct a Comprehensive Market Analysis for Your Business
5. More Efficient Return Logistics
Product returns are a “thorn in the flesh” of the e-commerce industry. With as much as 30% of online clothing orders being returned, it is worthwhile to seize every opportunity to optimize the customer experience. Besides, the retailer may incur added expenses when such returns are made. However, the adoption of AI by retailers is making the return process more efficient. AI tools make it easier to identify the reason for returns as well as the best pathways for returns in terms of logistics. More importantly, retailers use GenAI tools to prevent the need for returns.
6. Improved Security And Fraud Protection
E-commerce fraud has led to a huge amount of losses in the form of fraudulent credit card charges. For example, recorded losses due to e-commerce fraud were up to $48 billion in 2023. AI plays a crucial role in combating fraud by using pattern recognition and batch analysis to identify suspicious transactions. AI-powered systems can detect anomalies in purchasing behaviour and flag potential fraud attempts before they escalate.
In addition to fraud detection, AI helps ensure that legitimate transactions go through smoothly. This dual approach not only protects customers but also builds trust in the retailer’s platform, leading to a more secure and seamless shopping experience.
Get Ready for the Future of Smarter Online Shopping
The integration of AI technology in online shopping is only beginning. As AI continues to evolve, we can expect even smarter search tools, more personalized experiences, and stronger security measures. By embracing these AI-driven innovations, both consumers and retailers can enjoy a shopping experience that is more efficient, user-friendly, and secure.
Related: The Rise of Telehealth: Transforming Patient Care with Health Tech
Want to learn more about how AI is transforming online shopping and other industries? Visit Exclusive Blueprint, a digital marketing blog powered by Buzztide Technologies. We provide valuable insights, tips, and tools to keep you ahead in the digital marketing world. Explore trending topics in e-commerce, content marketing, and technology by reading our latest articles today!
