In the digital native age, online shopping has become the norm for consumers around the world. Gone are the days when brick-and-mortar stores were the primary way of purchasing products. In fact, if brands and businesses are not yet digital and are not using e-commerce to reach their customers, they stand the risk of cataclysmic failure.

With the e-commerce market continuing to grow, businesses are seeking innovative ways to stand out from their competitors and provide personalised experiences for their customers. The shift in consumer demands has led to businesses turning to artificial intelligence (AI) to provide more engaging and personalised content for online shoppers.

Engaging and interactive content has been proven to increase online sales. This is evident in the rise of live-stream e-commerce, a highly interactive shopping format. A Statista survey revealed that 30.3 per cent of Singaporean consumers had used live commerce for shopping, with a further 49.1 per cent of respondents saying they are aware of it but are yet to use it.

With this in mind, businesses are increasingly looking to optimise engagement using AI-powered tools such as chatbots that can provide personalised recommendations and answer customer queries in real-time.

Benefits of AI-powered e-commerce tools for businesses

These chatbots provide a tailored experience for customers, making it easier for them to find products they may be interested in. AI-powered product recommendations also provide a personalised shopping experience, increasing the chances of customers making a purchase.

Also Read: Hard work takes over when talent fails: Latif Sim of BeLive Technology

New technological developments are also changing the way businesses engage with online shoppers. Augmented reality (AR) and virtual reality (VR) for instance enable customers to virtually try on clothing and accessories or even visualise how furniture will look in their homes.

This provides a more immersive and interactive experience for customers, making them more likely to make a purchase. For example, Sephora, a leading cosmetics retailer, turned to AR technology through their Virtual Artist app to provide virtual try-ons for their products. Customers can now use their mobile phones to virtually try on lipstick shades, making it easier for them to make purchase decisions.

The impact of the pandemic has also had a significant effect on online shopping strategy. With the closure of physical stores and increased online shopping, businesses have had to adapt and find new ways to engage with customers. Many have turned to live streaming as a way to showcase products and provide a more personalised experience for customers.

Live streaming has evolved to include interactive features, where customers can ask questions and receive immediate responses. Nike, a global sports brand, used live streaming to launch its latest sneakers. Their Nike Training Club app provides personalised workout plans and training sessions based on the user’s fitness goals, while also offering interactive features like social sharing and leaderboards.

In addition to this, the company created a virtual event where viewers could watch a live stream of the product launch and interact with experts to get more information about the sneakers. This helped increase their engagement with the brand and ultimately drive sales.

Brands like IKEA and Wayfair have integrated interactive 3D and augmented reality features into their online shopping experiences, allowing customers to see how furniture and home decor items will look in their homes before making a purchase.

Another area where technology is having a significant impact on content creation is through the use of generative AI. Traditional video creation methods can be time-consuming and expensive. However, generative AI can help streamline the video creation process and reduce costs in several ways.

For example, automated video editing and AI-powered script writing eliminate the cost of labour, speed up the creation process, and produce a high-quality end product. Similarly, generative AI can be used to create video scenes that include background imagery, characters, and other visual elements. As such, the cost of hiring designers and artists is avoided.

Also Read: Beyond live shopping: What’s next?

The future of e-commerce: Emerging technologies and trends

The latest iteration of the digital age has transformed the way businesses engage with consumers, and the shift to online shopping has only accelerated this trend. To succeed in the highly competitive e-commerce market, brands must leverage the latest technology and trends to provide engaging and personalised experiences for their customers.

From AI-powered chatbots and product recommendations to augmented and virtual reality experiences, businesses have a plethora of tools at their disposal to create immersive and interactive shopping experiences.

The pandemic has further accelerated the adoption of these technologies, with live streaming and social media integration becoming increasingly popular among retailers. By embracing these trends, businesses can stand out from their competitors and thrive in the ever-evolving world of e-commerce.

–

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

Enjoyed this read? Don’t miss out on the next insight. Join our WhatsApp channel for real-time drops.

Image credit: Canva Pro.

The post How AI, AR, and live streaming are changing the online shopping experience appeared first on e27.