Big Data and Artificial Intelligence have been popular and emerging concepts in the digital world. Being a convergent trend that is gradually redefining the IT industry, Big Data and AI now aren’t merely topics covered in books or movies; every industry, including e-commerce, is actively embracing them in order to optimize their services.
E-commerce is a landscape that is set up with a primary objective of providing the exceptional offline shopping experience in the online space. This aim is accomplished by providing customers with a straightforward and seamless way of navigating their desired products. The development of big data analytics and artificial intelligence has proven to be technologies that the eCommerce industry needs today. Let’s explore how these trending concepts are restructuring the e-commerce industry.
Big data is an extensive collection of both, offline and online data. It focuses on being a productive source of analysis and sustained discovery for evaluating past trends and performance development with greater insights to gain higher customer satisfaction. Incorporating big data in the e-commerce industry will allow businesses to gain access to significantly larger amounts of data in order to convert the growth into revenue, streamline operation processes, and gain more customers.
Here’s how big data solutions can help the e-commerce industry to flourish:-
With the help of big data, e-commerce businesses can identify meaningful customer behaviour patterns, purchase histories, browsing interests, etc. Therefore, online businesses have the opportunity to re-target buyers by displaying or recommending products that they are interested in. Big Data can help drive more customers to online stores thereby positively impacting the overall ROI .
Poor quality shopping services impact the shopping experience of the customers as well as the reputation of the e-commerce service providers. Owing to the advent of big data, businesses have all the vital information that helps in providing better solutions to shoppers’ needs. This further allows the stores to understand their customers better and built a lasting relationship with them.
Big data allows real-time analytics, also referred to as “real-time business intelligence” to gain valuable customer insights. Data on buyers’ demographics and their journey to a particular e-commerce store provides a lot of insights that will help in personalizing the shopper’s experience and generate more revenue. Additionally, by analysing the traffic amount and online transactions, these insights also help in making an effective business strategy.
Artificial intelligence allows e-commerce businesses to maintain better customer shopping experience, optimize brand competitiveness, and built a loyal clientele. It provides accurate product recommendations and optimized search results for buyers to get what they want in minimum clicks. The growth of AI in the e-commerce industry has allowed businesses to effectively and precisely cater to the growing customer demands.
AI collects data from all the different aspects such as customer service, chatbots, social media, site-pathing, customer service interactions, mobile messaging, etc., analyse and displays it in a versatile manner that complements the shopper’s preferences.
AI-powered visual bots let the buyers find their desired products by uploading a picture and seamlessly finding the item they are looking for. It has certainly increased the engagement level that the customers now have with the e-commerce stores. AI has simply provided an effective solution to search for lifestyle and fashion products that are complicated to describe.
Inventory management is one of the biggest challenges that e-commerce providers tackle. Running out of stock means losing customer confidence and overstocking entails the requirement of extra capital. However, with AI technologies, businesses can build analytical AI models that can help in predicting inventory needs with high accuracy. It also helps businesses monitor market trends and changes in customer demands, thus allowing effective inventory management.
Big data trends and artificial intelligence have certainly made it easier for e-commerce providers to offer more optimized, streamlined, and seamless services to customers. According to leading tech leaders, these technologies are on the way to reshaping the e-commerce industry. Its adoption has certainly been challenging, especially for small e-commerce businesses because of the big investment it entails. However, failing to incorporate big data strategies and AI may put online stores at a significantly disadvantageous position in the market. Therefore, the faster the companies realize the potential big data and AI encompasses better will be their stand in the dynamically competitive market.