How AI/AR-powered e-commerce is revolutionizing the way we shop online?

Previously, going into an online store and choosing certain clothes, for us it remained a mystery how it would look on us in the end, there was a fear that it would not fit us and we would either have to make a return or put up with the loss of money. But the world doesn’t stand still. Artificial intelligence has been used in e-commerce for quite some time, and here are the results so far.

Products advertised with VR/AR content have a 94% higher conversion rate than products without that content according to Shopify.

Deloitte found that 40% of shoppers would pay more for a product if they could test it through AR technology.

AI/AR is already changing the world of e-commerce, but how exactly?

3D avatar for online try-on

Yoox online store has introduced a new feature in its app — users can create a personal 3D avatar on which they can try on clothing featured on their platform to get an idea of how a particular item will fit directly on the person.

Anyone with access to Yooxmirror can become a model by taking selfies and uploading a photo. Thanks to augmented reality technology, the image is digitized immediately after uploading to create a personalized avatar.

The data is analyzed using sophisticated algorithms that identify the visual elements within the product image. Deep learning technologies help to extract different product properties so that alternatives and better clothing combinations can be selected later on.

Augmented reality try-on and try-out

Bollé was the first in the helmet and eyewear industry to try AI in its business. The company invites users to “try-on” and “try-out” their lens and helmet on Instagram.

The unique customer experience also goes beyond Instagram: interactive 3D models on the Bollé website offer information points that can be hovered over for detailed description.

Wanna Kicks

Previously, in order to understand how you will look at a particular model of sneakers, you had to go to the store and try them on. But what if the sneaker is a limited edition, not available in physical stores, and the only option is to order it online. How do you know if these sneakers will fit you?

Artificial intelligence is ready to offer a solution.

You can simply download an app to try on sneakers. It allows to try on new and classic models in augmented reality. You can try on your favorite sneakers anywhere and anytime, see if they fit you, and even take a photo to ask your friends for advice.

Large online store Lamoda has already implemented this feature to its platform.

“We expect that the virtual fitting will help increase the conversion rate in the sneaker category to 8–9% and reduce refusals after trying on before buying them by 10–15% — now it can be up to 60%”, — said the managing director of digital marketing and product Lamoda Group.

Search by photo

Trying on clothes is not the only thing AI can do to help grow your online store and provide an awesome shopping experience. One of the most common use cases for AI is visual recognition. This algorithm recommends similar or related products.

Saw a photo and wanted to buy a product — almost everyone has faced this situation, but it is often very difficult to find the product you want.

The mobile app Snap. Find. Shop by American retailer Neiman Marcus allows customers to take a picture of something they like, and the app will find the product or a similar one in their catalog.

Convenient, easy, and fast — everything customers need.

Face recognition

Face recognition allows you to identify the age, gender, and other qualities of your customers, helping you to learn more about your target audience.

Face recognition technology also makes it possible to pay for items without using bank cards or entering payment information.

Such a feature is already available to owners of Apple smartphones with FaceID. This significantly reduces the time it takes to make a purchase and makes the process more convenient.

Amazon has already begun experimenting with facial recognition and plans to use the technology as an additional security measure.

Product recommendations

AI helps you cope with the task of creating effective product recommendation blocks, which directly affect your profits.

Products in recommendations change instantaneously based on clicks. Recommendation algorithms change based on user behavior and easily adapt to your business requirements. Therefore, the block will include products that are more likely to be bought.

Thus, Apple TV suggests movies based on users’ tastes and viewing history, and Amazon gives recommendations to users depending on their past activity and past purchases.

AI chatbots

AI chatbots or smart assistants are other examples of AI use in e-commerce. A chatbot takes care of all typical requests, takes the load off employees, and works 24/7 without making mistakes. Chatbots imitate real consultants and help customers find the things they need.

And most importantly, such bots are an effective way to increase your revenue while reducing operational costs.

To sum up

AI and AR arechanging e-commerce right now, and whatever our future holds, artificial intelligence will be part of it. That makes it all the more important for businesses to be able to apply its capabilities.

“Today’s smart retailer is engaging in a new era of shopping experience, combining the human touch and technology to deliver a more tailored consumer experience.”

Guita Blake, senior vice president, Mindtree