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6 AI Trends In E-Commerce That You Need To Know

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When the pandemic hit in 2020, the world economy crashed drastically. But several businesses and retailers still managed to stay afloat, thanks to all the technological advancements. They simply shifted to online marketplaces to launch their brands and increase product traffic. 

There is no doubt that e-commerce has transformed the shopping experience while meeting customer demands and leveraging technology at the same time. But what factors have contributed to the value of the ecommerce industry?

When it comes to shaping the e-commerce industry, AI is a leading technology that has aided in streamlining and automating online stores, raising the bar for customer satisfaction and generating revenue. Moreover, with AI at the forefront, many businesses are creating 97 million new jobs by 2025 to meet the industry’s growing trends. 

Below we have outlined a few AI trends shaping the world of e-commerce. 

1. Allows Personalized Recommendations

Errorful manual recommendations in the past were the primary cause of dissatisfied customers. When online buyers cannot find what they are looking for, they automatically search for alternative options and reach competitors’ websites. The value of AI lies in boosting revenues and streamlining recommendations. 

E-commerce businesses can provide relevant products to their customers through predictive search. Through AI and machine learning, companies can analyze customer data such as gender, demographics, search history, and buying patterns, allowing them to recommend products based on clients’ preferences.

Predictive analytical tools and techniques are in high demand for image recognition, behavioral analytics, automation, and inventory management. Many key players, including IBM and Microsoft, are working to integrate advanced artificial intelligence tools with e-commerce businesses to deliver a seamless customer online shopping experience.

2. Automates Product Categorization

Automation paved the way for the robust expansion of online stores and e-commerce businesses across the globe. Online marketplaces such as Amazon and e-stores rely on ecommerce shopping categories to feature their products in the most easy-to-access way for potential buyers. These taxonomy structures let customers reach their intended products with the least clicks.

You can easily automate product categorization by using AI for customers. This way, consumers can apply relevant filters to the site and search the product catalog to find the articles while saving time and effort. Just put the product title and description in the Google taxonomy model and reap the unparalleled benefits. You can optimize keyword search and easily run Google ads campaigns on categorized products according to Google’s taxonomy structure. In addition, it enables you to leverage social media sites such as Facebook and Instagram. The ID of the Google product category is essential for categorization and taxation purposes for direct checkout shopping.

3. Enables Highly ‍‍Customizable Products

Data-driven approach to ensure highly satisfied customers is made possible with the increasing role of artificial intelligence. It collects valuable insights about customers’ online shopping behavior and empowers retailers to make result-oriented decisions.

AI converts huge volumes of consumer data into meaningful data sets representing sales trends, hot selling items, and least buying items. It allows retailers to offer highly customizable products to customers based on their preferences. 

For instance, if a customer is interested in only blue color, e-commerce sites will allow them to customize their products in blue color powered by AI technology. They can also modify or alter the features of products depending on their choice.

Some businesses collect data on consumers’ preferences through surveys, online interactive sessions, and quizzes to align their products to their requirements. It results in high sales and revenue generation as consumers like personalized experiences in e-commerce stores.

4. Featured AR and VR

Artificial intelligence empowers e-commerce businesses and online stores to gear toward the real-life demands of consumers. Many online brands use augmented and virtual reality to feature their products in real-life settings. 

These technologies allow customers to see the product’s appearance before they buy it. For instance, AR and VR integrated sites can show you exactly how an art piece or furniture would look in your living room.

According to statistics, around one-third of United States online shoppers will use AR and VR-powered technologies to make their purchase decision by 2025. These cutting-edge technologies allow clients to tour products virtually while sitting in their homes or offices.

It helps them to assess the physical features of the products in detail. Consumers can thoroughly evaluate online products’ merits and demerits and make informed decisions with AR and VR integrated platforms.

5. Control Fake Reviews

The boom in e-commerce led to some potential pitfalls disturbing the seamless flow of businesses. Online fake reviews are one of the most challenging issues hindering retailers’ progress. 

Reviews tend to shape customers’ online shopping behavior, whether positive or negative. About 97% of consumers claim that reading online reviews influences their buying decisions.

‘Astroturfing’ is the common practice where deceptive or false reviews look original and trustworthy. Positive reviews can boost your business, but what about negative fake reviews? Here artificial intelligence comes into the mainstream to weed out fake reviews. Some e-commerce sites rely on reviews by verified customers and ratings powered by artificial intelligence. For instance, Amazon, the top-rated e-commerce store, uses AI to fight the challenge of fake product reviews. The in-house AI system powered by machine learning boosts verified reviews and gives them more weightage. Other mechanisms prefer the site’s latest, helpful, and high-rated reviews. 

6. Helps In Removing Counterfeit Products

With a huge variety of products in online marketplaces, it becomes difficult for customers to identify fake or counterfeit items. Product attributes such as categories, brands, and specifications play a vital role in spotting fake articles.

Artificial intelligence optimizes the performance of e-commerce sites with machine learning algorithms. They provide an extra layer of protection to brands to identify counterfeits. In addition, it also guides businesses in discovering how consumers reach their sites/products.

Data collected through AI technology from multiple online e-commerce sites help businesses to analyze and determine fake products. Many factors pinpoint fake products, such as how often an account posts, what kind of products are listed on an account, and possibly fake reviews on listed products.

When the client purchases a counterfeit item considering it an original, it compromises the legitimacy of your brand and may lead to negative word of mouth. In this case, clients can submit complaints and claims to one of the largest ecommerce marketplaces like Amazon and eBay to remove the shady and counterfeit products.

Final Thoughts

Before diving into the e-commerce industry, ensure you know what it takes to establish and build a successful business venture. Knowing customers’ buying trends is key to increasing sales and generating revenue. You can move forward in the right direction using cutting-edge AI tools for your online setup.

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