How AI is Revolutionizing Ecommerce Product Discovery

According to Google, 61% of users quickly move on to another e-commerce site if they don’t find what they’re looking for. Does your brand encounter a similar scenario?

Well, one of the reasons could be inefficient product discovery platforms. E-commerce product discovery is as difficult as finding a needle in a haystack. Customers often are left to browse through multiple pages to find the products of their choice, and eventually offered only generic product discovery suggestions. This causes frustration among customers leading them to drop off.

In this blog, we will cover the reasons for these gaps, and explore how to improve e-commerce product discovery using AI by empowering businesses to cater to customers' preferences, ultimately leading to more recurring purchases.

Top 7 Reasons Behind Customer Drop-off

A major reason for customer drop-off is because of inaccurate product discovery suggestions. It is crucial to understand the underlying reasons and address them to improve the overall customer experience. The most common reasons for customer drop-offs are:

Information Overload

With so many products to choose from online, customers can easily become overwhelmed by the sheer amount of information available. This can lead to decision fatigue, making it difficult for customers to find the products they are looking for. AI can help to overcome information overload by providing personalized recommendations and filtering out irrelevant products which ultimately make the process easier for e-commerce product discovery.

Limited Search Capabilities

Many online stores only support keyword-based searches, but they are limited to allowing simple keywords and hence are unable to capture the nuances of customer queries or the context of their needs accurately. AI-powered search can improve the relevance of search results and provide more personalized product discovery suggestions, leading to increased customer satisfaction and conversion rates.

Lack of Personalization

Traditional e-commerce product discovery comparable to personalized product discovery methods doesn't focuses on customer preferences, purchase history, or browsing behavior, leading to generic product recommendations and higher customer drop-offs. AI can help you to personalize your e-commerce customer journey by understanding their past behavior, interests, and preferences. This can help you to discover more relevant products, offers, and content that will keep your customers engaged and coming back for more. As a result, you can expect to see an increase in customer engagement, loyalty, and sales.

Inefficient Categorization

Poor e-commerce product discovery and inadequate product category tagging can lead to products being misplaced or difficult to find, frustrating customers in their search. However, some product discovery tools can help Shopify stores improve their product categorization and merchandising, making it easier for customers to find what they're looking for and overall improve the ecommerce merchandising of a online store.

Limited Product Information

Customers are more likely to abandon their purchase if they don't have enough information about the product they're interested in. This could include things like product specifications, reviews, or images. AI can be used to provide more detailed product information to customers, which can help to reduce drop-offs

Inability to Handle Synonyms and Misspellings

Traditional systems struggled to understand synonyms or misspellings which led to inaccurate search results. Usually, AI Shopping Assistant helps in solving misspellings and understanding poor vocabulary.

Language and Cultural Barriers

In global eCommerce, language and cultural differences pose challenges in conveying product information accurately and tailoring the user experience to diverse customer bases. These challenges not only deter customers from making purchases but also diminish trust in the e-commerce store which ultimately impacts customer retention and revenue generation.

Showcase the right product with AI-powered product discovery

In this section, we’ll explore how AI has been a game changer in improving product discovery in ecommerce and decide to purchase:

Product Categorization

As discussed earlier, one of the major challenges in ecommerce product discovery is that customers find only generic products. When an e-commerce store is powered by AI live chat, it categorizes and tags products into relevant groups and attaches descriptive tags. This makes it easier for customers to quickly find what they are looking for instead of sifting through countless web pages. According to one of Google’s research, more than half (52%) typically abandon their entire cart and go elsewhere if there’s at least one item they can’t find.

Personalized Recommendations

Imagine a scenario, a customer explores an online store, searching for a "bag." Without AI-powered e-commerce product discovery, they might receive generic recommendations, failing to meet their specific needs. But with the magic of AI, the narrative changes. The AI chatbot analyzes their search and realizes they want a bag to complement a pink dress. Leveraging machine learning, it smartly filters through products, offering a curated selection that precisely matches the customer's desires.

Moreover, AI doesn't stop there. If the customer has made previous purchases, the AI chatbot accesses their purchase history and browsing behavior to provide a personalized recommendation. For instance, if the customer has bought skincare products before, the AI system will consider this information and suggest other related products from the same category that align with the customer's preferences.

The suggestions not only cater to the customer's immediate needs but also take into account their past interactions with the platform, resulting in a more satisfying shopping experience. By tailoring product recommendations based on specific preferences and historical data, AI enhances customer engagement, increases the chances of successful purchases, and ultimately strengthens the customer's loyalty to the online store.

Boost products in the sale category for better results

However, in an AI-enabled e-commerce store, product visibility is strategically optimized during sales. During peak sale periods, AI can enhance the prominence of products in the sale category, ensuring they are easily discoverable by customers seeking discounted items. Simultaneously, AI can adjust the priority of these sale products during regular periods and instead promote bestsellers and trending items, catering to the customers' evolving interests.

Cross-Selling and Upselling

AI chatbots play a pivotal role in identifying cross-selling and upselling opportunities. According to Forrester's research AI-powered chatbots have increased cross-sell and upsell opportunities by up to 30%.

Suppose a user is browsing smartphones on an e-commerce website. The AI chatbots gather and analyze this data, recognizing the customer's interest in smartphones, and suggesting complementary product recommendations like protective cases or additional accessories that enhance the user's smartphone experience.

By combining these approaches, you can provide an intuitive way for users to discover products that align with their preferences, ultimately leading to increased customer satisfaction and improved business outcomes.

What’s the takeaway?

When customers encounter obstacles while searching for products on your website, it immediately results in a missed chance to provide an exceptional customer experience. Even if you have fantastic products, a creative rewards program, or a generous exchange policy, it won't matter if you can't connect shoppers with the items they are seeking in the first place.

To truly excel and offer competitive shopping experiences, mastering AI powered ecommerce product discovery is imperative. Otherwise, all your other efforts run the risk of becoming irrelevant.