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How AI & ML Play a Role in the Transformation of eCommerce Retail

Co-founder, CEO
eCommerce personalization
Tags :
3 min

According to research, retail sales are projected to reach around $30 trillion by 2023. Plus, retail e-commerce revenues are projected to grow to $5.4 trillion US dollars by 2022, which means online shopping that the pandemic accelerated is going to keep growing. Fuelling this sky-rocketing growth is Artificial intelligence or AI as it is commonly known. In simpler words, AI has been a game-changer for the eCommerce industry.

If you don't believe us, know that around 51% of eCommerce players have already implemented automation technologies across sales, marketing, and customer service teams to pave the way for a seamless user experience for the customers. 

In this blog, we will look at how brands can use the best AI powered eCommerce domain to boost sales, drive a personalized customer journey, and elevate the overall shopping experience. Let's get to it straight away.

Top 4 Major AI Applications in eCommerce

Find out about the most recent AI applications that are transforming the global eCommerce sector:

1. Intelligent and personalized product recommendations

When it comes to delivering a superior eCommerce experience, there's no denying that driving 'customized and relevant' personalized product recommendations are essential. Here are some tried-and-tested ways in which you can use Argoid's AI-driven recommendation engine to enhance the customer experience:

  • Provide personalized home page recommendations, especially if you wish to boost the CTRs on your home page and want to hyper-personalize every section of your home page as Amazon does through its 'Related to Items You've Viewed' section:

Amazon's recommendations
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  • Personalize the home page banners based on the user's likes and past purchases
  • Showcase what products are trending in addition to highlighting sections such as 'Recommended for you' (a.k.a. the customer)
  • Highlight sections such as 'Recently viewed,' 'Similar products,' 'Products bought together,' etc.
  • Provide contextual and tailor-made search results (more on this later)

Another successful example of the best AI powered eCommerce is Rare Rabbit’s Shopify website. The brand leveraged Argoid’s powerful AI-driven perssonalized product recommendation engine to boost the Sales conversions, particularly for pages where product recommendations were enabled. For instance, the brand showcases a “You May Also Like ” and “Similar Items” section which customers can browse through based on their past shopping experience:

personalized recommendation
Image Source

If you want to improve your conversion rate optimization journey, you need to partner with the best AI powered eCommerce platform that personalizes the customer experience through the use of real-time customer data such as likes, dislikes, preferences, purchase history, among others. 

Plus, personalizing your eCommerce homepage empowers brands to reduce the churn rates and encourage repeat purchases as customers begin to enjoy a seamless, convenience-driven, and hyper-personalized shopping experience.

2. Chatbots and other virtual assistants

The best AI-powered eCommerce chatbots have emerged as a must-have for 'smart'  brands--particularly in times of a global pandemic--where customers are increasingly opting for virtual shopping and looking for ways to reduce physical contact. 

Enter chatbots. These intelligent bots can double up as virtual customer care executives or ultra-useful sales agents for the customer, personalizing the shopping experience 24x7--as the Mind Heros chatbot demonstrates below:

Image Source

Customers can get their queries addressed instantly, effectively, and quickly. Furthermore, these multi-tasking chat-bots can collect user feedback in real-time by way of surveys/polls and gather useful customer data, every time a customer logs onto the digital website.

This invaluable data provides insights into your customer's buying preferences, previous purchases, etc., which can be used to improve the marketing campaigns and the overall customer care experience from start to finish.

3. AI-powered targeted email marketing

AI-powered email marketing plays an instrumental role in encouraging customers to shop more or even, come back and complete their purchase by way of using personalized nudges/trigger/notification/ other email marketing methods and offers.

In fact, the best AI-powered eCommerce platforms such as Argoid, enable eCommerce brands to capture customer data in real-time and extract insights into user behavior. This information can then be used to target specific customers on a personalized note via customized target email marketing campaigns. You can also set up automated triggers to send personalized target emails for each shopper based on actions such as price drop, checkout abandonment, or real-time user behavior.

For example, take a look at Perigold's personalized ' 'Add to cart recommendations' email, which includes critical user information on what the users might like in addition to enabling a seamless one-step-checkout process with effecient email marketing techniques:


In addition to this, you can also offer personalized product recommendations to users on the checkout page and cross-sell/up-sell based on several parameters like shopping behavior, brand, type of product, similar customer behavior, etc.--thus boosting the average order value and conversion rates.

4. Personalized search results on user behavior

At the heart of eCommerce shopping lies unparalleled convenience. In fact, a staggering 88% of the customers search for their products on an online store. This means that customers want to find products quickly. They want the brands to provide personalized recommendations and preempt their needs. This is where an intuitive and intelligent 'Search' feature can lend a helping hand boosting user happiness and driving sales.

Instead of greeting the customer with a “We did not find any such item” message in case of spelling errors made by the customer during the search result, eCommerce brands should suggest alternatives using AI-led 'smart' search capabilities.

For instance, you can use Argoid's AI powered eCommerce platform with contextual search functionality on your eCommerce website to showcase useful products on the search results that are based on user preferences. This accelerates the shopping process and allows customers to instantly find what they're looking for. 

The takeaway

It goes without saying that AI and machine learning are transforming the eCommerce retail space with every passing day. Customers are willingly embracing and getting used to powerful AI powered eCommerce recommendation features that are making their shopping experience easier.

If you are looking for a 360-degree platform that comes power-packed with the best AI-powered eCommerce personalization features that are tailor-made for eCommerce applications, Argoid is the tool for you. For any queries, get in touch with us, and let's get the conversation going.

FAQs on eCommerce Personalization

Why AI and ML are essential in eCommerce retail?

AI and ML are changing the global eCommerce retail sector to a large extent. From offering personalized shopping experience to offering virtual store assistants, AI & ML are redefining the digital retail experience.

How AI and ML can play a role in eCommerce personalization?

AI & ML can help eCommerce stores to create a completely personalized user experience by generating highly relevant, data-centric product recommendations.

What are the ways to improve eCommerce retail personalization with AI & ML?

Getting a personalized recommendation engine can improve eCommerce retail experience for customers by reducing their search efforts and offering them most relevant product suggestions.

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