Request your e-shop search audit - it's free! Get a free audit

Artificial intelligence (AI) is not just a buzzword in the ecommerce sector; it’s a game-changing technology reshaping how online shopping platforms operate, especially in search functions.

AI’s influence is profound, from algorithms and machine learning to automated solutions that significantly enhance the shopping experience (even while the staff is off-duty [1]).

In the last four years, the number of businesses that started exploiting AI increased by 270% [2,3].

Therefore, if you still run your ecommerce store with the default search engine and handle processes manually, AI might open limitless business growth opportunities.

Transition to AI - a must for growth-seeking ecommerce business

In the past, ecommerce search was limited. It could only match keywords and provide a list of relevant products. The more accurate keyword a user enters, the more likely a search engine will deliver a matching product.

Now, with the integration of AI, online stores can offer personalized experiences and understand customer needs and preferences, positively impacting purchasing behavior and decision-making [4]. This evolution in technology has made automation a necessity for modern ecommerce stores.

AI appeared in the ecommerce search market as a human resource-saving method for providing personalized and highly accurate search experiences.

Getting to the core of user requests with NLP

One of the most significant ways AI is revolutionizing ecommerce search is through natural language processing (NLP).

This technology allows customers to use plain language in their search queries, and the AI system effectively understands and delivers the most relevant results.

For instance, a person can ask for winter hiking gear recommendations, and the AI behind NLP will do the rest.

This advancement not only makes the search process more intuitive for customers but also enhances their overall shopping experience [5].

Relevant product suggestions with personalization

Additionally, AI-driven personalization, often through sophisticated recommendation engines, plays a crucial role in enhancing customer satisfaction and sales.

These systems leverage a customer’s search history to suggest products they may find appealing, which has been particularly effective in online fashion retail [6].

For instance, a woman searching for swimwear for her beach vacation might be also interested in slippers, hats, and sunglasses. The next time she searches after the purchase, an AI-driven search will offer precisely that.

Improve inventory management with analytics

AI’s capabilities extend to inventory management as well. By continuously analyzing customer data, businesses can predict trends, adjust inventory levels, and run targeted marketing campaigns, thereby reducing waste and improving efficiency [7].

This approach not only saves costs but also ensures that businesses are always stocked with in-demand products. You can always go to your ecommerce search analytics and check which products received the most interest, which search terms were trending, and which ones received zero results.

AI-powered product recommendations, ranking, and boosting allow you to sell more without spending anything extra.

Will AI become the future of ecommerce?

AI can significantly improve customer behavior prediction and increase conversion rates in e-commerce, although ethical and privacy implications must be considered.

As ecommerce continues to evolve, AI is becoming an indispensable tool for online businesses. With AI, sites can offer more sophisticated search functionality and better manage their inventory and operations, all while reducing the need for additional human resources [8].

LupaSearch - your AI-powered search partner for a promising future

Lay a solid foundation for your ecommerce business success by partnering up with an AI-driven ecommerce search provider.

LupaSearch provides the most demanded features for ready-to-scale ecommerce businesses.

From typo correction and NLP to statistics-based search improvements - LupaSearch is a reliable search partner that can radically improve your store’s conversion rates, customer experience, and user satisfaction.

On average, businesses that partner up with LupaSearch notice a 40% conversion rate increase.

Let your business exploit AI and place your company alongside the biggest retail businesses.

Contact LupaSearch product consultants and request a free demo today.

References

  1. Soni, V. (2020). Emerging Roles of Artificial Intelligence in Ecommerce. CompSciRN: Artificial Intelligence (Topic). https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3648698

  2. Meghan Rimol (Gartner). Gartner Forecasts Worldwide Artificial Intelligence Software Market to Reach $62 Billion in 2022. Market Growth Will Accelerate as Organizations Progress Their AI Maturity. STAMFORD, Conn., November 22, 2021. https://www.gartner.com/en/newsroom/press-releases/2021-11-22-gartner-forecasts-worldwide-artificial-intelligence-software-market-to-reach-62-billion-in-2022#:~:text=Worldwide%20artificial%20intelligence%20(AI)%20software,new%20forecast%20from%20Gartner%2C%20Inc.

  3. Madya, F., Rulinawaty, R., & Pasaribu, D. (2022). Government with Algorithm: Strategy to Improve Synchronous Public Service Using Artificial Intelligence (AI) in Indonesia. Budapest International Research and Critics Institute (BIRCI-Journal). https://doi.org/10.33258/birci.v5i2.5272.

  4. Jangra, G., & Jangra, M. (2022). Role of Artificial Intelligence in Online Shopping and its Impact on Consumer purchasing behaviour and Decision.. 2022 Second International Conference on Computer Science, Engineering and Applications (ICCSEA), 1-7. https://doi.org/10.1109/ICCSEA54677.2022.9936374.

  5. Chen, M. (2018). The Analysis of Model for Electronic Commerce - Artificial Intelligent. Journal of Asian Business Strategy. https://doi.org/10.18488/journal.1006/2017.7.2/1006.2.39.43.

  6. Pillarisetty, R., & Mishra, P. (2022). A Review of AI (Artificial Intelligence) Tools and Customer Experience in Online Fashion Retail. Int. J. E Bus. Res., 18, 1-12. https://doi.org/10.4018/ijebr.294111.

  7. Sharma, A. (2023). Analyzing the Role of Artificial Intelligence in Predicting Customer Behavior and Personalizing the Shopping Experience in Ecommerce. INTERANTIONAL JOURNAL OF SCIENTIFIC RESEARCH IN ENGINEERING AND MANAGEMENT. https://doi.org/10.55041/ijsrem17839.

  8. Sharma, A. (2023). Analyzing the Role of Artificial Intelligence in Predicting Customer Behavior and Personalizing the Shopping Experience in Ecommerce. INTERANTIONAL JOURNAL OF SCIENTIFIC RESEARCH IN ENGINEERING AND MANAGEMENT. https://doi.org/10.55041/ijsrem17839.