#AI is revolutionizing #ecommerce to make every sale a personalized experience
Ever wondered what winding journey a parcel from an ecommerce portal takes before reaching you?
We will tell you that story in a while however before that let’s chew on a few statistics: According to the latest available statistics, eCommerce in India is expected to emerge the second-largest market in the world (after US) to reach $64 billion by 2020 and $200 billion by 2026 from the present $38.5 billion in 2017.
Meanwhile, the retail sector, the biggest contributor to eCommerce is all set to expand by 60 percent to reach $1 trillion by 2020, with the overall retail market to grow 12 percent annually.
A Forbes reports suggests that of this, the global B2B e-commerce will grow to $6.7 trillion by 2020. Already certain online stores, such as #Amazon, #Flipkart and #PaytmMall are establishing themselves as category leaders for in their respective industry.
A combination of factors have contributed to their phenomenal growth in India – large investments in technology, growing internet and smartphone penetration, a young user demographics, and a burgeoning and a splurging middle class.
Many categories, such as lifestyle products, consumer electronics, clothing, footwear, jewelry and accessories, health and beauty, household goods, art and collectibles, event tickets and online music are doing exceptionally well in terms of online sales. Technology-driven innovations such as digital payments, hyper-local logistics, analytics-driven customer engagement and digital advertisements, are driving the industry, along with government-led initiatives such as #DigitalIndia, #SkillIndia, #StartupIndia and #MakeinIndia, according to market watchers.
In this kind of a growth scenario, let’s examine what #ArtificialIntelligence is doing to make every online sale a very personal experience. This will tell the full tale of what happens when you hit the “Buy Now’ button on an online marketplace and how the product gets delivered at your doorstep.
Are you familiar with #Amazon’s “item-to-item collaborative filtering”?
It’s based on a complex algorithm that feeds tailor-made content to the platform’s homepage as soon as a user arrives on the site. Believe it or not, Amazon’s sales jumped by 29% when it installed this feature of targeted recommendations.
Travel portal #Wayblazer uses the same feature to recommend travel and lodging suggestions either based on the customer’s past buying behavior on the site, or by collating the behavior of other ‘demographically matched’ used to make a recommendation to the new user?
Sounds incredible? Well, that an AI-powered personalization solution that also engages users with instant text and voice messages, and identifying and searching products based on images.
Social media platform, #Pinterest recently added an extension to the Chrome browser that allows users to search for a product shared on Pinterest by highlighting it in the browser – cool, isn’t it? Learn everything about the new feature from a #YouTube video here. You can even crop a product you like on YouTube, and have AI fetch you the most similar product online, so you can order it right away. Department store #Neiman Marcus lets users collect images from its app’s camera to match it with similar objects in its catalogue.
Similarly, an India-based AI company, Artificia, uses visual search and discovery tools to link individual images with a user’s interests to recommend products that they are more likely to purchase.
Outdoor cloth retailer in the US, #TheNorthFace uses IBM’s AI Watson to enable customers to find the perfect clothing though voice commands, such as “Where would you” or “What activity would you be engaged in?” and their answers are analyzed along with information pulled from other sources (social media platforms for instance) to choose and present the right product to the user.
Responding to Queries
Meanwhile, there are restaurants that are using Facebook chat bots to take online bookings, which is another application of AI technology. Many Indian insurance companies are using ‘bots in their business.’
#3PMMarketplaceSolutions, a Chicago-based startup, uses AI to spot counterfeits, to lobby for the product removal from marketplaces, such as #eBay.
Campaign Management Analytics
Google already has a voice-based AI solution to search for a piece of information from the web.
Online shopping has evolved so much in recent years with the help of newer technology that now it’s more fun shopping online than offline – a scenario that was thought of as impossible a few years ago, especially in a market like India.
Given this change, the boundaries between brick-and-mortar retailers and e-retailers are melting fast and furiously.
So now you know how you got that little black number delivered to your doorstep from Jabong, and it turned out to have exactly the look you had dreamt about?