How a Generative AI-Powered Shopping Assistant is Helping eCommerce to Increase Sales

AI-powered shopping assistants have transformed the eCommerce landscape, enhancing the overall shopping experience, which has led to a significant increase in sales. The AI shopping assistants offer personalized recommendations, address queries, and assist throughout the buying process, which boosts the economy of the eCommerce sector.

The evolution of online platforms in the shopping sector has improved the customer experience. The way we used to shop has become more effortless and engaging. However, if we dive deep into the concept of online shopping, we will notice the overwhelming feeling of seeing the vast range of selections, which often leads to indecision and not buying anything at all.

According to a recent survey done by Baymard Institute, around 70.19% of carts remain abandoned. To ensure a product does not just lay on the shopping cart and the customer completes the purchase, it is necessary to show its worth.

As technology evolves, we can see that generative AI in eCommerce has improved the shopping approach and has boosted sales. Over the years, gen AI has improved up to 15% of revenue in the e-commerce sector. This is because personalized product recommendations help customers better pick the required product and complete the buying process without facing any trouble.

How AI shaping the Future of  eCommerce Industry?

It is no secret that online shopping can sometimes be a bit complex. There is an immense range of products to select from, and the checkout process can be difficult to understand for some. Many eCommerce AI tools are available that make online shopping fun and games.

Various e-commerce platforms are using AI shopping assistants to improve the customer experience. This tool helps a person to get product recommendations, analyze the prices of similar products, and provide help & support, along with assistance for seamless checkout from the page. The AI assistant recommends products to customers based on their search histories and shopping patterns.

It is also worthwhile to note that the virtual assistant is available throughout the day to engage with customers and has the potential to close sales. When customers’ queries are answered immediately, and they get the best suggestions on the products to buy, there is a higher chance of the customer completing the purchase.

Additionally, chatbots are available to help customers even after the purchase of the product, in case they want to buy a similar product or need to reorder. The AI shopping assistant will make the process easier and seamless for the customer.

10 Ways E-Commerce Can Boost Sales With Gen AI

Nowadays, AI ecommerce tools are widely used by experts for content management, improving overall sales performance, building better customer experience, and many more. Here, you can learn about the primary features of the shopping assistant tool.

Personalized Shopping Recommendation

The AI-powered shopping assistant is designed to generate personalized recommendations for products and services based on customer behavior, browsing history, and purchasing habits. In addition to personalized product recommendations, this tool also uses email marketing and notifications to remind customers to buy the product by sharing market and cost insights.

Enhanced Customer Support & Virtual Assistant

Customer satisfaction is directly proportional to the business’s customer support. If customers’ queries are not acknowledged quickly, they might lose interest in buying a product. Therefore, eCommerce AI tools are designed to resolve customer doubts and questions regarding a product or order process and can share delivery insights. With the AI shopping assistant, customer support is enhanced, and revenue increases in the eCommerce sector.

Advance Search Capabilities

As the AI tool is curated with the help of NLP (Natural Search Capabilities), it is easier for customers to search for products with their conversational language and not rely on specific keywords to find a product. Customers can also look for a product using an image, as the AI tool offers an image search option.

Targeted Push Notifications

Push notifications are a form of reminding customers to purchase a product or show them the things they are likely to buy. AI tools closely analyze the customer’s behavior to deliver push notifications that mostly notify if the cost of a product has lowered, how the stock of the product is decreasing, and the benefit of the product that attracts the customer to buy it. The push notifications are mostly relevant to what a customer wants or needs, so the chances of purchase increase.

Predictive Analysis & Inventory Management

The AI-based eCommerce platform not only benefits sales by maintaining customer and business engagement but also provides a perception of inventory management. By analyzing the market approach regarding the products, the AI tools can tell the business which products should be stocked up. The company can predict market demand and optimize inventory by understanding the data offered by AI tools.

Effective Checkout Process

The checkout procedure becomes seamless with the integration of Gen AI in eCommerce. The AI tool stores the shipping details and the preferred payment mode in check, which reduces the customer’s time spent reselecting these items repeatedly. One can simply go to the checkout page, set the shipping address in one click, and continue paying through a secure payment mode for effective checkout from the page.

Automate Marketing Campaigns

Artificial intelligence analyzes customer data to build automated campaigns for targeted audiences. The AI tool personalizes ad copies, emails, and social media posts based on customer demographics. Automated marketing campaigns advertise the right kind of product and service to potential customers. The marketing campaigns are personalized mainly depending on customer behavior and purchasing patterns.

Prevent Fraudulent Activities

Optimizing technology in eCommerce online mediums, the threat of fraudulent activities is a concern these days. However, introducing Gen AI on those channels can prevent fraudulent activities. AI-powered tools are now capable of identifying fraudulent patterns and helping analyze transaction data. This feature enhances security and prevents fraud for both customers and the company.

Improve Product Pricing

There are several e-commerce platforms available in the market offering the same range of products and services. In most cases, customers tend to compare pricing prior to purchasing a product. So, it is important to maintain the same price graph for the products, which can be analyzed seamlessly with the help of artificial intelligence. Businesses can monitor the price fluctuations done by competitors, closely examine market demand, and improve product pricing.

Increase upselling and cross-selling

Generative AI caters well to customer needs by offering product suggestions, conversational searches, descriptive products, and many other things to engage customers more with the business. AI-powered tools store purchase patterns, browsing history, and customer data to improve customer satisfaction in the future. When the product recommendations are more personalized, the purchase experience is smooth. AI uses all the approaches to increase sales, generate more revenue, and increase the scope of upselling and cross-selling.

“Did you know? You can integrate the OpenAI API with your business applications, including eCommerce websites, to leverage the powerful AI features offered by OpenAI and boost your business growth. By integrating AI, you can enhance customer experiences, automate processes, and gain valuable insights, ultimately driving efficiency and innovation within your business.”

Future of Gen AI in eCommerce Business

The eCommerce platform is significantly growing, and the introduction of Gen AI shopping assistants has increased the growth rate. As per Polaris Market Research 2022, the value of the Virtual Shopping Assistant is $516.4 Million. Analyzing market trends and customer behavior, the value of AI shopping assistants is expected to increase by 29.6% in the years 2023-2032.

Source: Polaris Market Research

Cost to integrate AI in e-commerce

When exploring the role of Gen AI in the e-commerce industry, it is also vital to understand the market price for integrating AI solutions into the business. There is a vast market of AI solutions catering to different business needs. Well, when we are focusing on the e-commerce industry specifically, you must know that more than 50% of businesses are emerging with AI technologies to boost their sales.

The cost of AI solutions depends on the basic requirements, the complexity of technology, and many other factors. However, below you can find an overview of the market price for AI solutions on your business module:

• Custom AI Solutions range between $6000 and $30000. It covers the steps between the development and implementation of AI technology in the eCommerce site.
• Ready-made solutions are the cheaper option available in the market. They offer recommendation engines, fraud detection systems, chatbots, and writing software.

First, you must understand the concept of AI development that suits your business needs, meets your business requirements and enhances customer satisfaction to build a strong base for improving sales. The complexity and need can help you determine the overall cost of the AI solution.

Build Your Own Custom Gen AI Solution for Your eCommerce Business

With the eCommerce industry and shopping approaches constantly evolving, it is mandatory to choose the right AI solution for your business model. We offer a wide range of services to fulfil your need for end-to-end AI development to enhance the customer experience and adequately improve sales.

Our experts understand what can improve your eCommerce business by suggesting suitable AI technology, as they have been working in the same industry for 7+ years. They can support you from the point of development of the platform until implementation and even after that for the scope of improvement.