COVID-19 has pushed almost every sector to take the digital route, furthering the growth of e-commerce like never before. With an average increase of 5% per annum in 2021, the e-commerce sector has positively changed even during these challenging times. It would not be exaggerating to mention that the trends in this sector would be predominantly positive in the coming years as well.
In this context, a few technologies and factors shall dominate the sector’s growth in the next few months. The role of these technologies would be to improve the overall efficiency of e-commerce operations and ensure that the adoption rates are higher than ever.
Eliminating fake reviews through Artificial Intelligence
The role of reviews in determining consumer behavior is crucial. Numerous studies have shown that positive reviews on e-commerce websites could stimulate buying behavior. This often leads to sellers opting for fake reviews that diminish overall trust in a brand and question the overall integrity of an e-commerce platform. Besides this, it is not uncommon for competitors to leave unfavourable reviews to reduce the sale of a product on a website or imply that an e-commerce platform is not offering high-quality products or that they are fraudulent. These kinds of charges destroy the reputations of well-known e-commerce firms.
This is where Artificial Intelligence (AI) comes into the picture. It filters out these unrealistic ratings using language processing methods, thereby detecting unusual text patterns and ensuring that customers receive accurate feedback from actual purchases, which can benefit the new buyer and help him make informed decisions. In addition, AI may occasionally ban specific individuals from accessing the website to prevent fraud. Undoubtedly, AI has proved to be a win-win for both customers and brands, enhancing the overall shopping journey and improving brand sales.
Intelligent searches through Artificial Intelligence
What exactly do we mean by “intelligent search”? When a consumer wants to buy something and search for his needs, artificial intelligence helps them locate the exact things they seek through extensive research and technology.Customers are presented with various products similar to what they are looking for.
Furthermore, we occasionally leave the website abruptly after viewing the product.What AI does is save that product in your website account so that the next time you enter the application, you may see it and buy it. It encourages customers to purchase items by displaying similar products on all social media platforms linked to the e-commerce site.
Expansion of e-commerce further
Indians have opted for 5G smartphones, even when the technology is yet to be launched. Since the introduction of e-commerce to the world, it has been steadily developing. New technologies are also assisting e-commerce in expanding and covering all potential areas. Everything is now available online.
Furthermore, after COVID-19 hit the market, the e-commerce platform grew even more because no one wanted to go out in the crowd to shop and would instead order online. Customers don’t have to worry about any concerns because these e-commerce platforms are pretty secure when placing orders and paying online.
Following are some factors that will help e-commerce grow in the coming year:
- Ecommerce that is API-driven and headless will reign– The term “headless” refers to a commerce system that stores, maintains, and delivers data without using a front-end delivery layer. It offers a variety of options in terms of usability and functionality.
- API, which stands for application programming interface, on the other hand, refers to the interactions between software pieces. For example, with the help of API, the MakeMyTrip app removes the search queries you had and replaces them with relevant searches you are looking for.This will aid in expanding e-commerce, and many new consumers will join the platform.
- Image Recognition to Enhance Product Discovery– This is a very advanced form of technology and works in a straightforward format. You can upload a photo of what you want, and the website will show you the specific item while deep searching for it or comparable products based on artificial intelligence. This function is frequently referred to as a virtual trial room, where you can view products in greater detail. It also communicates with shops to request additional similar products when it detects that the demand for a particular product is increasing. Google Lens fits to be the right example here.
- ROPO / ROBO will rise– This means Research Online, Buy Offline. Customers can use this service to find out the costs of things on the market and customer reviews. It assists customers in obtaining the best products and services at reasonable price points. ROPO, on the other hand, helps business owners track their customers and the products they are looking for.As a result, sales productivity will grow as business owners learn more about their customers’ demands and want in the rapidly-evolving business landscape.
Even though the growth and adoption of e-commerce have been consistent and encouraging, one can easily witness that the future would be even better with the overall role of new technologies. Some of the limitations of e-commerce shall be addressed in the future. The broad part of the segment shall expand further due to the application of evolving and upcoming technologies.
(Sudeshna Datta is Co-Founder & Executive Vice President at Absolutdata and the views expressed in this article are hers)