06 Jun 2022 IN eCommerce

Machine Learning & Artificial Intelligence in eCommerce: How these technologies are changing the online storefront

These days, eCommerce is booming with the latest technologies and has become no longer traditional. And so artificial intelligence and machine learning are now no longer unfamiliar concepts. To satisfy customers, eCommerce has taken a new dimension through machine learning and artificial intelligence.

Additionally, digital marketing has taken over most of the eCommerce platforms. This delivers a personalized user experience and product offers to the right customers at the right time. Advanced technologies including ML and AI make all aspects of life easy. In this blog, we will share the most practical and powerful ways that eCommerce websites are used in the retail sector.

Artificial intelligence and machine learning are widely anticipated and accepted by global leaders such as Microsoft and Google. According to one report, Google has recently purchased the artificial intelligence company DeepMind worth £400m. It is specialized in machine learning and algorithms. Other tech firms including IBM, Facebook, and Yahoo have already expressed their interest as a new way of business.

You will find dozens of AI and ML-related articles online that say a marketplace soon dominated by artificial intelligence. One of the recent studies on AI says 85% of customer interactions will be managed without human interaction by 2020

The role of machine learning and artificial intelligence in eCommerce is essential because AI understands customers better and helps in new lead generation.

But how?

Continue to read on the list of the advantages that describe how is AI and ML are vital to transforming the shopping experience. We recommend highly trending Shopify theme development and Shopify application development to build an extra ordinary and feature-rich eCommerce store with AI and ML.

More Customer-Centric Search

Artificial intelligence and machine learning let eCommerce search engines think like humans. When your products and services are not based on customer preferences, they often abandon your site. This happens all because of irrelevant product results. To handle this issue, you must come up with better and improved search engine results. This is only possible with artificial intelligence and algorithms.

When you leverage ML, the AI software will automatically develop a customer-centric experience by automatically tagging and organizing visual search engine content. Apart from this, according to the one research on custom training for AI stated that you can easily build unique models by teaching AI to understand any concept, be it a product, logo, PubG, or Pokemon.

You can easily browse and use such models by implementing keyword searches and visuals. Artificial intelligence is an essential technology to give a competitive edge to any business.

Now, users can easily find similar products with just a single click of the camera. This is all because of super-fast AI technology as it enables wide options of matching products including sizes, colors, shapes, brands, or materials. Most of the eCommerce companies have implemented this concept to assist the customers successfully.

Target Marketing & Advertising

With AI and machine learning you can easily handle marketing on a budget. With bespoke AI marketing models, you can deliver a personalized experience to the users. To stand out from the crowd, now, most of the online marketplaces become personalized by including one-to-one conversations with the customers.

These new-age techniques enable in-depth personalization to create tailor-made content for the users. AI analyzes past histories of purchase and other communication to deliver better results.

More Customer Retention

As AI helps with the target marketing and advertising for a customer-centric approach, customers can enhance recognition. According to the McKinsey omnichannel personalization research, there is a 10-15% increase in recognition and revenue through personalized approaches.

This report says,” Winning the war for diverse talent, next-gen skills, and embracing a fluid workplace will give retailers a performance advantage”. In the end, AI gives wings to the personalization to being better data insights.

Seamless Automation

To accomplish automation seamlessly, you need to make sure about little or zero human intervention. Because according to this study, “AI and ML technologies can speed processing of consumer orders by 300 percent and provide a positive ROI for retailers. Automation of the distribution center alone could boost profitability by 300 to 700 basis points.”

AI plays a big role to automate repetitive tasks to make sure your online stores function properly. So, if you want to automate business tasks such as low-key support, price discounts, product recommendations, etc. consider artificial intelligence.

Personalized Product & Service Recommendations

Artificial intelligence made it easy to collect customers’ data on their online purchase experience. AI can easily offer individual product recommendations based on purchase histories. Being a common user, you must be amused when you see the same product options that you are desiring to buy. All of this happens because of the use of machine learning. ML analyses your history of purchase and recommends items.

Most of the leading online retailers rely on machine learning to analyze the previous history of customer shopping experience. After, they use it as a marketing campaign and customer insights generator.

Smart logistics

For efficient inventory management, you need to maintain the right level of organizing and meet all demands without adding to idle stocks. For smart logistic management, you should adopt a new way of AI inventory management than traditional logistics. Artificial intelligence enables warehouse management with automatic robots to store or retrieve stocks. 24*7. These robots are also used for immediate dispatch following online orders.

See, the image below that depicts the right level of inventory and artificial intelligence at Amazon.

By implementing smart AI inventory models, most retailers are setting intent targets for the delivery. Because according to the McKinsey report, “More than 75 percent of the speciality retail supply chain leaders in our sample have made two-day delivery a priority, and 42 percent hope to offer same-day delivery by 2022.”

Chatbots & Virtual Assistants

To provide 24*7 support to the customers, most of the eCommerce retailers are shifting towards virtual assistants and chatbots. These tools are built with rich AI technologies to deliver better customer experiences.

Chatbots can be used for customary replies and also understand users’ issues and reply accordingly. Additionally, chatbots also enhance the impact of artificial intelligence in eCommerce.

Have a look at chatbots & virtual assistants capabilities:

  • With the help of in-depth insights, chatbots address customer needs.
  • For more improvement, virtual assistants help with self-learning capabilities.
  • Chatbots deliver targeted marketing and personalized offers to customers.
  • With natural language processing (NLP), chatbots interpret voice-based conversations with the customers.

Thus, from automating the order processes to providing a personalized experience, chatbots deliver a feasible experience to potential customers.


Now that you know that artificial intelligence plays a vital role to drive the most advanced innovative solutions and excellent user experience. If you are thinking to deliver the best possible shopping experience to the users, you should look into these various advantages of AI and ML. Because these technologies help you set unbeatable business plans for the future.

For immediate assistance with any type of website design and eCommerce development related requirements, connect with us now!