August 17, 2021

Artificial Intelligence: Transforming the E-commerce Industry

Artificial Intelligence has embedded itself in our daily lives. Right from the increase in the number of self-checkout cash registers to advanced security checks at the airport, artificial intelligence is showing up in multiple technology products and services across various industries.

AI is widely used in e-commerce businesses for a better understanding of their customers, generating new leads, and also providing an enhanced customer experience. Right from identifying potential customers, creating efficient sales processes, chatbot services, implementing AI-driven shopping assistants, providing product recommendations, analysing customer comments, amongst the many others, AI technology helps the e-commerce business in various ways.

With everything going digital or online due to the ongoing pandemic, online services and chatbots for e-commerce have been a blessing and helps to make the shopping experience stress-free. A study in 2021 reveals that 1 in every 5 consumers are willing to purchase goods or services from a chatbot, while 40% of the online shoppers are looking for great offers and shopping deals from chatbots.

While AI is beneficial for consumers, it is an absolute boon for e-commerce owners as well as helps to streamline the work and avoids mundane and time-consuming tasks. AI technology helps the owners with payment/ tax reconciliation and catalog management among the many other tasks.

Payment/tax reconciliation

AI-powered payment reconciliation tools are essential for companies to save large amounts of stocks and costs. RPA bots help in manual accounting reconciliation tasks for businesses. This technology prevents overdrafts, bounces checks, overcharged fees, and shows patterns of financial trends such as cash inflow and outflow. Thus, ensuring an automated and detailed report of real-time costs and inventory, and reducing the strain on the finance department.

Following are a few more benefits on bots in payment/ tax reconciliation:

No time-off needed: As the bot can operate 24×7, it is easier to meet stringent deadlines and ensure GSTR compliances.

Extreme efficiency: Bots are more efficient and make fewer errors than manual filing done by people.

Accuracy: Pre-programmed bots make no errors. Thus, 100% accuracy can be guaranteed as long as the pre-set rules are valid, and the predefined steps have been accurately configured.

Speed: Bots can be as fast as the computing power available to them. Human restrictions of processing speed, distractions, or need for a break do not apply to bots, so their speed is always much higher than any manual processing.

Catalog management

Customer satisfaction is the most important objective for businesses and is the ultimate deciding factor that separates successful companies from the rest. Keeping this in mind, multiple businesses are now using AI to create an exceptional retail experience. E-commerce businesses need to understand the buyer’s progress and journey,  how they engage with the products and services, and also need optimised catalogs that cater to their customer's needs. AI helps e-commerce companies to optimise their catalog product management by identifying new products, removing duplicates from their catalog, and so on to provide their customers with a seamless experience.

Following are the objective of integrating AI with e-commerce or retail management:

-Optimise product catalogs using demand analysis per item listed, on an ongoing basis

-Automate more workflows like product listing, attribute enhancement, product identifications, and so on

-Speed up time-to-market

-Achieve seamless multi-channel distribution using ongoing price competitiveness checks and more

Benefits of implementing AI in catalog management

• Reduce data entry effort by 75% or more

• Reduces manual errors

• Efficiency and data accuracy

• Maintaining data quality

• Digital data capture can reduce cost by over 85%

E-commerce sites are going to continue to leverage the AI concept to keep their customers engaged and to reap consistent benefits. These goals ultimately allow the company to provide better customer experiences, generate more sales with improved margins, and raise customer loyalty.

- Collotech, An Intelligent Process Automation Solutions Provider