How Artificial Intelligence Affects The Ecommerce Industry These Days?

Humans use natural intelligence to do their actions. Machines demonstrate Artificial Intelligence (AI) for their actions, particularly in an eCommerce business. AI is about computational tools that substitute for human intelligence in performing specific tasks. It marks a revolution of computer science that is growing exponentially. It has a complete grip on the future eCommerce.

Success Indicators

  • AI accounts for 35% of the overall revenues of Amazon E-commerce platform and product recommendation. It includes product cross-selling and up-selling.
  • Online retailers use AI for providing chatbot services, personalized services to online shoppers, and for analyzing customer comments.
  • According to a study of Ubi send in 2019, 20% of consumers are willing to buy goods or services from the chatbot, and 40% of online shoppers intend to get great offers from chatbots.
  • As per the prediction of Gartner, 80% of all customer interactions will be managed by AI.
  • Global E-commerce sales will touch $4.8 billion by 2021.

Transforming Shopping Experience

Shoppers make a particular brand of purchases online; there is a particular pattern. The eCommerce retailer analyzes the pattern and sends a personalized offer to the shopper. There could be a machine learning-based recommendation for a product supplementary to it. Buying with your own decision and buying with a technically-supported recommendation make a different buying experience.


1. Chatbot

Also known as Virtual Assistant, a chatbot is an AI software that simplifies human-computer interaction. It simulates a chat or conversation with a user in natural language. The media are websites, messaging applications, telephone, or mobile apps. A chatbot is a system o Question-Answering by leveraging Natural Language Processing (NLP). Various enterprises formulate responses.

Modus Operandi of Chatbot

It includes significant tasks, which are:

User Request Analysis: The chatbot analyzes the request of the user, identifies the intent of the user, and extracts relevant entities.

Returning the Response: It gives the most appropriate response that comes from

  • a pre-defined text,
  • a text retrieved from the knowledge base,
  • data based in systems,
  • a conceptualized piece of information based on the data provided by the user, or
  • The result of an action that the chatbot performs by interacting with some backend applications.

Impact of AI in Ecommerce

  • Natural Language Processing (NLP) appropriately interprets voice-based communications with consumers.
  • Going deeper into consumers’ intent to identify the right products or services.
  • Consumers are enabled with self-learning capabilities that help them to improve through repeated experience
  • Make personalized or targeted offers to consumers.

Recommendation of Intelligent Products

The conversion rate of recommendations is 915%. It accounts for 3% of average order values.AI creates an entity that thinks in an autonomous manner similar to humans. Big Data parses and analyzes to identify trends and patterns. As complementary to AI, big data impacts customer choices with the knowledge of earlier purchases, products searched, and online browsing habits of customers.

Benefits of Product Recommendation

  • More numbers of customers returning to purchase again.
  • Improvement in customer retention and sales.
  • Providing a personalized shopping experience to online buyers.
  • Facilitate a personalized business email campaign.
  • Deriving useful user insights from the customer data so generated.

Artificial Management at Amazon

  • Discovery and Search
  • Fulfillment and logistics
  • Enhance Existing products
  • Define new products
  • Boring Machine Learning to all

Inventory Management

Conventional Inventory Management aims at maintaining an exact level of inventory to fulfill the market demand without generating idle stock. AI-enabled inventory management enables the maintenance of stocks based on data related to the following:

  • Sales trends over the earlier years
  • Prediction of changes in future demands in demands
  • Impending issues related to supply that could affect the inventory levels.

Warehouse Management

Automated robots, projected as the future of AI in eCommerce, enables management of the warehouse. On getting online orders, robots can retrieve stocks 24X7. They take up time-consuming, dangerous, and stressful aspects of warehouse operation and mitigate human mental and physical strain. They can retrieve inventory from heights and transport the same instantly.


AI provides Smart solution to the eCommerce industry:

1. Sentient Technologies enables virtual digital shoppers by recommending new products based on their personal buying patterns and data insights.

2. Amazon Voice Shopping enables you to review the best daily deals on Amazon and to place buying orders online just with your voice. Amazon Alexa also provides you tips on wardrobes with the best combination along with a comparison. It suggests the best outfits that will suit you’re the best.

Curtailment of returned Goods

AI is reducing the return of purchased goods that might arise due to size and style preferences. The former arises due to shoppers’ measurement and later due to tight or loose clothing. Zara is developing AI capabilities for curbing the issues. This will add to repeat buying o the same products.


1. Email Marketing

Retailers send emails for products or services that might of interest to the recipients. These email marketing tools make an intelligent user analysis based on their response. Customers find them more aligned to their needs.

2. Supply Chain Automation

Besides, effective management AI enables business decisions associated with the delivery schedule, vendors, and market needs.

3. Data Analytics

These tools provide several benefits, such as business intelligence, online sales analysis, and customer analysis.

4. Omnichannel AI Solutions

They are providing seamless and consistent customer experience across online and brick-and-mortar retail stores. For instance, Sephora is trying to reduce the gap of experience between online customer experiences and in-store. Therefore, they are using a combination of AI, NLP, Machine Learning, and computer vision.


With its innovative solutions, Artificial Intelligence is helping the ecommerce industry to go ahead with exponential speed and volume of sales. The areas of creating the edge are personalized shopping, inventory management, and product recommendations. Several ecommerce businesses are yet to avail of the opportunities and benefits. If you are one of them, you can consult Accountants, a data analytics provider who can provide solutions related to product analytics and Ecommerce KPIs.