Can you imagine what AI apps can do for your e-commerce business?

Sephora, a French-based e-commerce company specializing in personal care and beauty products, has achieved considerable success through the implementation of an AI-powered mobile app. The Sephora application, enhanced by the intelligent Sephora Virtual Artist feature, allows customers to virtually try various makeup products.

Beyond virtual try-ons, the app provides personalized alerts, product recommendations, and enticing gift cards. Notably, the incorporation of these AI-powered features has resulted in the e-commerce app bringing 8.5 million customer visits and over 2 million downloads.

Following Sephora’s lead, several other prominent e-commerce companies such as Wayfair, Taggshop, Alibaba, and Boxed have successfully utilized AI technology in their applications and achieved significant business outcomes.

If you operate an e-commerce business and aspire to enhance your sales, considering the integration of AI apps is a strategic move. This article will delve into how AI-powered mobile apps can boost your e-commerce business, providing insights to guide you in this endeavor. Let’s get started.

What are AI-powered apps?

AI-powered applications refer to mobile applications that employ artificial intelligence for intricate operations. These apps harness the potential of AI technology across various use cases, providing advanced solutions and an improved user experience. AI-powered mobile apps integrate AI and machine learning algorithms to enable automated, intelligent, and self-learning features. They empower users to engage in innovative activities, facilitating human-like interactions and delivering personalized user experiences.

Prominent Instances of AI-Enhanced E-commerce Applications

• Amazon
• Sephora
• Alibaba
• IKEA
• Rewind
• Justuno
• Wayfair

The Necessity of AI-Powered Mobile Apps for E-commerce Businesses

The e-commerce industry is experiencing remarkable growth, with global revenue projected to reach an impressive $3.64 trillion in 2023, expected to rise to $5.56 trillion by 2027 at a compound annual growth rate (CAGR) of 11.17% between 2023-2027, as reported by Statista. The average revenue per user is also anticipated to reach $827.40.

This surge in the e-commerce sector is largely attributed to the widespread adoption of mobile-first and digital approaches to online shopping. Modern consumers favor the convenience of ordering anything online through mobile apps, avoiding the need to venture outside or visit physical stores. However, as technology advances, consumer behavior and business practices evolve accordingly.

In recent years, artificial intelligence has emerged as a transformative technology across various industries. In the e-commerce realm, AI is a key player in enhancing growth by improving various facets of the business. The current e-commerce landscape requires enhancements in crucial areas, including:

• Customer experience
• Sales growth
• Operational efficiency
• Reporting and data analytics
• Checkout optimization
• Conversion Rate Optimization
• Landing Page Conversion
• Reviews and ratings
• Product recommendations
• Social sharing and recommendations
• Optimized performance across all devices

AI proves instrumental in addressing these aspects, playing a vital role in boosting e-commerce sales by refining customer experience, optimizing operations, and leveraging data analytics for strategic decision-making.

How can AI-powered mobile apps boost e-commerce businesses?

Artificial intelligence brings forth sophisticated capabilities, and its integration into mobile applications elevates their functionality, enabling the creation of innovative and customized features. Currently, the utilization of mobile apps in the e-commerce industry is extensive, with online businesses actively investing in e-commerce app development services to construct feature-rich applications.

AI technology plays a pivotal role in empowering developers to refine app performance and enhance features, thereby providing users with an improved online shopping experience. Let’s delve into how AI-powered apps contribute to boosting e-commerce business.

1. AI-Powered Chatbot Assistance

Chatbots constitute a prominent feature of e-commerce mobile apps, integrating AI for various automated services such as online customer support, voice assistance, and 24/7 availability. They significantly contribute to enhancing the online shopping experience by employing text messaging and voice commands to simulate a human-like conversational interaction.

These AI-driven chatbots utilize technologies like AI, ML, and NLP to comprehend customer inputs and provide optimal answers or solutions. Consequently, chatbots play a pivotal role in improving sales conversion rates. According to Jupiter Research, chatbots are projected to generate over $100 billion in e-commerce transactions by 2023.

2. Strategic Deployment of Augmented Reality

Artificial intelligence plays a crucial role in enabling e-commerce companies to effectively leverage augmented reality features. Notably, leading global e-commerce brands such as IKEA, Sephora, and Alibaba have experienced significant boosts in sales growth following the incorporation of AR features into their e-commerce apps.

This success is attributed to the distinctive capability of augmented reality technology, allowing customers to visualize products in real-world environments. This aids in informed purchasing decisions, contributing to enhanced sales conversions. The synergy of AI and AR further elevates the quality and creativity of AR features within e-commerce apps.

The integration of AI and AR in e-commerce app development introduces innovative features, leading to improved customer engagement and ultimately converting potential customers into sales. Some noteworthy functionalities include:

• Virtual try-on solutions
• Product placement previews
• User manuals

3. AI-Enhanced Product Recommendation Systems

A significant contributor to the growth of e-commerce businesses is the implementation of AI in product recommendation systems. E-commerce applications leverage these systems to suggest products tailored to individual customer preferences and expectations. By utilizing customer data, many e-commerce companies provide personalized product recommendations, thereby optimizing sales processes. Integrating AI into recommendation systems in e-commerce mobile applications offers various advantages, including:

• Generating more traffic
• Increasing user retention
• Enhancing sales growth
• Improving customer experience

To elevate your e-commerce sales, consider incorporating AI into the recommendation system of your e-commerce app.

4. Detection of Fake Reviews through AI

Customer reviews play a pivotal role in influencing e-commerce sales. Whether a product is expensive or budget-friendly, prospective customers often seek reviews before making a purchase. Recognizing the vital importance of reviews in customer decision-making, e-commerce businesses actively implement effective strategies to collect customer feedback and product reviews, aiding new customers in selecting the right products.

However, the integrity of customer reviews is sometimes compromised by fraud activities, where fictitious buyers or competitors tarnish the reputation of products through fake reviews. This issue persists even among leading e-commerce brands such as Amazon and Alibaba. Here, AI emerges as a robust solution.

AI enables e-commerce app developers to utilize machine learning algorithms for the precise identification of fake reviews. By scrutinizing elements such as unusual text patterns, formatting discrepancies, and improper wording, AI-powered e-commerce apps can swiftly and accurately detect fake reviews. This ensures fair competition among sellers, upholding the authenticity of product reviews in the e-commerce domain.

5. Optimized Inventory Control

Effective inventory management plays a crucial role in saving significant time and costs for business owners. It aids in enhancing speed and performance, minimizing waste by efficiently handling products with a higher likelihood of selling. Artificial intelligence contributes to making inventory management more efficient and intelligent.

The integration of AI into inventory management systems allows e-commerce apps to achieve expedited order fulfillment, and streamline operations related to inventory management and supply chain, thereby enhancing overall efficiency.

Moreover, leveraging AI in inventory management provides e-commerce business owners with a competitive advantage. This is achieved by reducing time and effort in internal operations and enabling swift responses to customer inquiries. Consequently, this contributes to delivering an enhanced customer experience and fostering increased profitability.

6. Enhanced Sales Analysis and Projection

E-commerce apps infused with AI possess advanced data analysis capabilities. AI empowers these applications to adeptly gather substantial volumes of customer data and extract valuable insights. Through AI-driven sales analytics and forecasting, business owners can precisely scrutinize customer behavior, identify purchasing trends, and make accurate predictions about future sales.

Beyond this, AI facilitates the optimization of inventory levels, the identification of new growth prospects, and the formulation of enhanced marketing strategies to boost e-commerce sales. With AI providing predictive intelligence, these applications effectively mitigate risks and maximize overall profitability.

7. Enhancing Product Pricing Efficiency

In the dynamic landscape of the eCommerce industry, the timely optimization of product pricing holds paramount importance. The certainty of when a product’s price needs adjustment is often uncertain, given various influential factors. These factors may include:

• Competitor activities
• Festive seasons
• Emergence of new trends
• Virality of products
• Customer reactions to product pricing

As a result, eCommerce businesses engage in daily efforts to refine their pricing strategy, making necessary adjustments based on multiple factors. This ensures that pricing remains aligned with current market demand, fostering consistent sales growth in the face of escalating competition.

How much does it cost to build an AI-powered ecommerce app?

Typically, the cost associated with constructing an AI-driven e-commerce mobile app falls within the range of $40,000 to $80,000, providing a broad estimate. However, this figure is only indicative, as the final cost depends on various factors. AI, being an advanced and intricate technology, necessitates significant expertise and sophisticated programming for successful implementation in mobile app development.

For a more accurate assessment of the expenses involved in creating an AI-powered mobile app for an e-commerce business, it is advisable to consult directly with a specialized e-commerce app development company. Their insights and expertise will offer a more tailored and precise estimate based on the specific requirements and complexities of the envisioned AI integration.

Conclusion

Artificial intelligence stands as a powerful technology, empowering mobile applications with advanced capabilities to execute sophisticated operations. The integration of AI into e-commerce applications provides strength to business owners to harness contemporary technology for enhancing sales growth.

In the current landscape of intense competition and evolving customer behavior, AI empowers e-commerce mobile apps to streamline their existing ecosystems, ultimately delivering an enhanced online shopping experience. This, in turn, contributes to amplified business growth.