How AI Improves Online Retail Consumer Experience

Online retail businesses are on the rise, since the world has largely embraced technology and ecommerce. Many people now prefer to shop online for their essentials instead of visiting a physical store to buy the products they need. This has advantages for entrepreneurs and consumers alike, since an online retail business model requires less capital than opening a physical store. Consumers can also buy products from the comfort of their homes.

The unique advantages of these businesses make them highly sought after and thus, more competitive. Online retail business owners have to optimize their operations and engage in digital marketing to give them an edge over their competition. This includes using artificial intelligence tools to improve consumer experience.

There are many artificial intelligence tools available for online retail businesses and the ones a business owner uses depend on their preference or business model. AI tools improve consumer experience in the following ways:

Chapters

Voice shopping assistance

Some consumers like to have a hands-free shopping experience for convenience and there are tools that provide voice AI in retail features for shoppers to issue voice commands.

Round-the-clock customer support

It costs a lot of money to have human customer support staff available around the clock to respond to consumers when they have inquiries and complaints. AI can reduce these operating costs by being available 24/7 to provide answers to customer FAQs. This also saves time, as AI chatbots can respond to many customers simultaneously, instead of having them wait in a queue.

Enhanced product discovery

AI tools, through machine learning, can learn the products that are best paired with the items that shoppers add to their carts. This enables them to suggest items that consumers might need but have not already added to their cart, thereby helping them seamlessly discover useful products and improve their shopping experience.

Better and faster search results

Artificial intelligent search engines on online retail platforms produce better and faster search results by understanding misspelled words and visual searches so it is easier for consumers to find products.

Personalized shopping experience

AI will help online retail platforms remember consumer past shopping habits and recommend products based on those shopping habits to improve their experience. This makes shopping easier and increases the number of shoppers coming back to the platform to buy products again.

AI Benefits for Business Owners

Online retail business owners also benefit in the following ways by integrating AI tools with their platform:

Increased consumer base

Artificial intelligence features make the shopping process more convenient, thereby encouraging new customers to patronize the business, thereby increasing its consumer base.

Enhanced fraud detection

Some shoppers unfortunately try to defraud online retail platforms but AI can effectively spot suspicious activities and significantly reduce the risks of fraud. This will reduce financial losses and make 

Inventory management

Including AI in the inventory management process allows businesses to predict product demand so they can optimize their stock levels to meet said demand. This prevents overstocking and stops capital from being tied up in inventory rather than being used for daily operations.

Smooth payment and checkout

Business owners can configure their online platforms to capture the payment information of their customers with AI when inputting it the first time and auto-fill them during subsequent shopping sessions. This makes the checkout process smoother and increases customer satisfaction.

Smart customer reviews

When consumers shop for products they have not purchased before on an online retail site, they often read reviews of customers who have bought those products in the past. AI can sort product reviews into different categories to help consumers make informed shopping decisions. It can automatically sort comments based on keywords that are essential to your shopping experience.

Optimize loyalty and reward programs

Loyalty and reward programs incentivize consumers to keep patronizing the same retail platform. Artificial intelligence tools can optimize this process by giving consumers loyalty points for taking certain actions like completing a checkout, buying a specific product for the first time, and making purchases over a specific amount in one go. These loyalty points can be redeemed as discounts towards certain purchases.

Challenges in Implementing AI in Online Retail Businesses

Despite the numerous benefits that come with using artificial intelligence tools on an online retail platform, some challenges prevent some entrepreneurs from embracing it such as the following:

Resistance to change

Some entrepreneurs are inclined to resist changes to their business practices especially if they have already found a working formula. The resistance often stems from the belief that it is not worth changing a system that is not broken. The flip side to this is that they risk lagging behind competitors that are not afraid to embrace change.

Lack of technical knowledge

Entrepreneurs who are not well-versed in technology may not be on board with the implementation of AI, since they do not understand it. As a result, it may be difficult to convince an entrepreneur that something they do not understand is better than their existing mode of operation. 

Cost of implementation

AI tools and features are often provided by third-party service providers and it costs money to integrate said tools and features with online retail platforms. The cost of implementation and maintenance of AI subscriptions may be too high for an online retail business owner to bear especially without a guarantee that there will be a significant return on their investment.

Endnote

Artificial intelligence is quickly becoming mainstream and business owners should use it where necessary to optimize their processes, like sales. AI-powered tools can be used in online retail businesses to improve consumer experience as detailed above, thereby giving said businesses an edge over their competitors. However, it should be used strategically to achieve the desired outcome.

Implementing artificial intelligence in online retail platforms comes with some challenges that make it difficult for some entrepreneurs to adopt it seamlessly. However, it is worth noting that AI implementation is worth the cost and the effort required to achieve it. 

Other Interesting Articles

• AI LinkedIn Post Generator
• Top AI Art Styles
• Automotive Social Media Content Ideas