How Artificial Intelligence gives e-commerce a boost

“Internet sales have increased in recent months, which has led to growth in the e-commerce sector. However, if new buying habits are to truly gain a foothold and survive the post-COVID19 reality, companies need to carefully cultivate the customer's buying experience. Having this in mind, artificial intelligence (AI) is not only a tool to improve user experience and increase customer satisfaction, but it can also facilitate payment management and detect potential fraud cases.”

According to a study conducted by the EAE Business School at the beginning of the Spanish lockdown, 30% of Spanish consumers said that due to the COVID19 pandemic, they would buy more goods online. The data also shows that in the first three months of the pandemic, 4% of these consumers were generally unfamiliar with online shopping, and 8.3% were shopping for groceries online for the first time. This change in consumer buying habits will largely depend on the customer's shopping experience after lock-in.

In order to improve the experience, brands need to develop core strategies, such as Know their customers, determine their preferences and needs, establish relevant communications with them, and provide transaction functions. This is where artificial intelligence technology can become an important business partner.

AI, result improvement, and fraud prevention

Artificial intelligence is the technology that will have the greatest impact on e-commerce in the coming years. According to the forecast of consulting firm Gartner, by 2023, most companies that use AI in their e-commerce platforms will achieve at least a 25% increase in customer satisfaction, accompanied by increased sales and reduced costs.

The use of artificial intelligence will span two aspects. On the one hand, when it is applied to fraud detection, image classification, price optimization, and customer segmentation, it can improve business efficiency. But it also has great potential to improve the user experience on these platforms by providing algorithm-based product recommendations and providing content personalization, virtual assistants, and improved search capabilities. All of these will help the company stand out and better position itself in the competition.

"Artificial intelligence can help strengthen sales in a variety of ways, especially improving the customer's shopping experience through personalized and guided processes, inventory control, and question-answering support functions. It also improves the recycling rate and payment acceptance rate," Said Jordi Nebot, CEO and co-founder of payment gateway PaynoPain.

The personalized understanding of each customer makes possible the personalized experience that the customer expects in the transaction. Achieving this goal requires a machine learning system that can change the content in real-time based on user behavior, predict the buyer's next step in the online store, and stay ahead of the retailer by optimizing the purchase process.

In addition, chatbots or virtual assistants can not only improve customer communication, but also provide support when needed, and create actions based on customer preferences. The logistical aspects of the

The process can also benefit from these technologies. Artificial intelligence assists e-commerce platforms to predict future demand by analyzing website usage patterns and predicting inventory requirements. This increased efficiency decreases costs and improves business performance. On the one hand, you cannot ignore the importance of the delivery experience in an e-commerce environment. The quality and speed of product delivery are critical to improving customer loyalty.

Problems related to payment are the basis of the experience. “For suppliers and online buyers, one of the most important issues is to ensure process security and minimize the possibility of fraud,” Nebot said. "The use of AI technologies such as advanced data analysis and machine learning can provide smart fraud management tools that enable companies to use previous experience to improve the security of their virtual businesses."

Chargebacks-Sellers must repay the payment when the product or service is returned -This is another major problem for online retailers. Sometimes, the functions provided by online services are used for illegal transactions. "With the help of artificial intelligence, transactions can be rated based on multiple parameters such as the number of customers, amount, or country of origin. If the transaction does not meet certain standards, the system can mark the transaction as a risk, and even immediately prevent the transaction from attempting fraud. ", PaynoPain CEO concluded.

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