How Is Artificial Intelligence Transforming Ecommerce Business?
artificial intelligence in Ecommerce

How Is Artificial Intelligence Transforming Ecommerce Business?

Accounting for a magnificent 35% of its gross profits, products cross-selling and up-selling of the E-commerce platform is among the major success stories of this retailer. Which technology is best for driving the mode of this conversion? The product recommendation technology is primarily authorised by artificial intelligence. Apart from these product recommendations, online retailers have utilised artificial intelligence in Ecommerce industry has been used online retailers for giving better chatbot services, provide personalised advices, and analyse customers’ comments to online shoppers. Research of 2019 found that one in every five consumers is willing to buy services or goods from the Chatbot when forty per cent of online shoppers search for a better offer and shopping deals.

When ecommerce sales are estimated to touch $4.8 billion by the year 2021, a prediction says that this technology can manage around eighty percent of entire customer interactions by the end of 2021. But what is the usage of AI in ecommerce? And how it is upgrading the experience of online shopping? Through this blog, you can find some critical applications of this technology in ecommerce, along with some examples of real-life industry.

How is AI upgrading the experience of shopping?

The use of Artificial Intelligence in the field of shopping is transforming the Ecommerce industry by changing the shopping patterns based on the particular products which buyers buy. Suppose if the online shoppers regularly buy the particular rice brand every week. Online retailers could give a personalised offer to these customers for that products, or they can use the machine learning authorised recommendation for the supplementary product which goes with the rice dishes. The uses of AI in online shopping change the ecommerce sector by upgrading the patterns of shopping.

Ecommerce artificial intelligence tools or AI-authorised digital assistants are constantly developing capabilities such as preparing grocery lists and giving online orders for shopping. The future of AI in e-commerce looks pretty bright.

4 Major artificial intelligence applications in the sector of Ecommerce

When there are various benefits of Artificial Intelligence Ecommerce, here are four major AI applications for this sector that dominates this industry today.

1. Some virtual and chatbots assistants

E-commerce retailers are constantly turning towards digital assistants or chatbots to give 24*7 support to online customers. Using these AI technologies, Chatbots are getting very much instinctual and are authorising the best customer experience. Besides providing the best customer support, Chatbot is increasing the impact of Artificial Intelligence in this Ecommerce through the capabilities like:

  • Natural Language processing cam interprets the sound-based interactions with the customers.
  • Self-learning capabilities will help them to improve overtimes.
  • Provide targeted or personalised offers to the customers.
  • Through deeper insights, it can address the needs of the consumers.

2. Recommendation of Intelligent product

Among each application of AI in the sector of ecommerce, the personalised product recommendations for online buyers are constantly increasing the conversion rates by nine hundred fifteen per cent and the average order values by three per cent. Product recommendation gives various benefits for the Ecommerce retailers, which includes:

  • Improve customer sales and retention.
  • Highest numbers of returning customers.
  • The personalised shopping experience for inline shoppers.
  • Authorise a customised business email crusade.

3. Backlog Management

Appropriate backlog management is totally about maintaining the proper level of inventory that can support the demand of the market without getting any idle stock. When the current form of stock management was strictly restricted to the conventional stock levels, Artificial intelligence backlog management is authorising the process of maintaining inventories based on the data related to:

  • Anticipated or projected transforms the demand of the product.
  • The potential supply-related issues which might impact stock levels.
  • Sales styles for over the previous years.

4. Artificial Intelligence enabled intelligent solutions for the industry of Ecommerce

Artificial intelligence technology introduces online buyers to a dimension of products that they did not know remained in the market. For example, an Artificial intelligence-based technology company is authorising virtual digital buyers who can recommend new products for online buyers based on data insights and unique purchasing patterns.

Artificial Intelligence in the fashion industry of ecommerce is decreasing the number of returned goods buy through online sales. For example, the fashion brand suggests the proper apparel size along with the preferences of the style. This will help this fashion brand to decrease the returning of products and improving the purchasing rate.

Also read – What Are The Latest Trends In eCommerce For 2021?


Artificial intelligence in the industry of ecommerce generally playing a dominating role in driving customer experiences and innovative solutions. This is how AI is used in e-commerce. You can find the leading use of AI in ecommerce is in the particular area of product recommendations, inventory management and personalised shopping.

As an online retailer, are you willing to consider achieving a model working of AI for your commerce business? Designing the ecommerce startups is the established provider of data analytics that authorise online retailers with solutions centred on ecommerce and product analytics.