How AI Chatbots are Revolutionizing Customer Support in E-commerce


The AI chatbot is marked as a revolution and intrusion in the marketplace, it has gained a specific spot in the eCommerce industry. All the industry giants like google, amazon, and medium and even small-scale startups have incorporated AI chatbots to cater to customer service. Or we can also say that there’s an active presence of eCommerce customer support in carrying out business operations. You would be surprised to know that the chatbot market in 2021 has approximately reached $3 billion, plus in 2016 the global chatbot market was valued at $190.8 million. Let’s have a detailed view of how a chatbot operates and other features about them. 


What is an AI Chatbot

First things first, an AI chatbot is not some highly-graded tech machine that manages the company’s customers. In fact, it’s powered by human intelligence and they are crafted in such a way as to handle all the customer queries and guide them according to their needs. Initially, Chatbots are built with pre-programmed scripts which after some time start giving repeated answers. But now chatbots come with machine learning technology and AI. The biggest advantage they can learn over time with experience and handle customer queries with highly advanced speech.   


The growing importance of customer support in e-commerce

With the advancement of AI technology, it’s hard to find out if you’re having a conversation with a bot or a human as the interaction feels professional and real. Moreover, in regard to the eCommerce industry - AI chatbots are revolutionizing the industry in terms of the interactions companies have with their customers. If you want a highly personalized, faster, and more accurate response switch to AI chatbots. It can also be deployed to social media platforms like Facebook messenger, Instagram, and others. 


Building customer support around an AI chatbot can cut operational costs by up to 30%. Now nearly half of the businesses are converting their infrastructure to automated customer support even on mobile applications. Plus, 64% of internet users find 24\7 availability as the best yet dope feature. In response to this growing trend, many eCommerce businesses have started using varied types of artificial intelligence technology to learn more about their customers while acting promptly on the feedback, this will generate more sales and money. 


AI also makes it easier for the eCommerce industry to find potential leads, foster marketing, and CRM solutions and cast a predictive analysis. 


How AI chatbots can add value to the eCommerce industry?


Enhanced customer engagement

In today’s advanced age, people prefer text to calling because a) they are too busy to take updates on calls and b) Some people are shy. Therefore to keep your customers engaged start texting them what's better than using an AI chatbot for a faster response rate? As per the research of Harvard business review, just 5 minutes delay in response to a customer query can decrease the engagement rate. On top of it, a delay of 10 min can reduce this metric by up to 400%. On the contrary, if you deploy an eCommerce AI chatbot it can amplify the customer retention rate by 54%. 

Collect data 

In this era, data is more crucial than oil. Based on data - you can win any market, increase your sales, and up your conversions if you hit the right spot. But the customer data that you collected should be consensual and by ethical means. Therefore, chatbots are the best way to encourage your customers to share data such as email, contact no, preferences, and contact details for a better customer experience. You can reach your customer via mail, and messages, and offer them special discounts and coupons. 

Decreased customer acquisition cost 

CAC or customer acquisition cost exhibit how much you have spent to attract one customer. And of course, lower the CAC the better it is for your business. Chatbots for eCommerce can reduce this cost as they offer instant connection, and feedback and engage customers for a longer period on your business page. Plus, the bot can offer personalized products based on likes and previous order history. In this way, a visitor to your website can be converted into a customer. 

Improved customer retention rate

In simple words, the customer retention rate is the number of people your business has converted into customers over a specific period of time. It is directly proportional, the higher the CRR the better your business is performing, you can also name its customer loyalty. Chatbots for eCommerce can increase CRR as they would be in constant touch with the customers. Many high-end brands like Sephora, eBay, H&M, and Burberry have already started using it to communicate better, provide status updates, recommend products, and drive sales. Better customer service is only possible with an AI chatbot integrated with your business. 


Understanding natural language processing (NLP)

Natural Language Processing (NLP) is a field of artificial intelligence that focuses on the interaction between computers and humans in natural language. It involves the use of algorithms and computational methods to understand, analyze, and generate human language.

NLP is concerned with various aspects of language processing, including:

  • Text analysis and understanding

 NLP algorithms are used to extract meaning from text, such as identifying the sentiment of a customer review, extracting important keywords from a document, or identifying the topic of a news article.

  • Speech recognition and transcription

NLP techniques recognize and transcribe human speech, such as converting spoken words into text for voice assistants.

  • Natural language generation

NLP algorithms can be used to generate natural language responses to user queries, such as chatbots or virtual assistants.

  • Machine translation

NLP techniques can be used to translate text from one language to another, such as Google Translate.


NLP is a rapidly growing field and has many applications in various industries, including healthcare, finance, education, and customer service. It is a crucial technology for improving communication between humans and machines, making it easier for people to interact with technology naturally and intuitively.


Best Practices for Implementing AI Chatbots in E-commerce Customer Support

Implementing AI chatbots in e-commerce customer support can be a game-changer for your business. However, there are several best practices that you should follow to ensure that your AI chatbot implementation is successful and delivers value to your customers. Here are some best practices for implementing AI chatbots in e-commerce customer support:

Set clear objectives

Define clear objectives for your chatbot implementation, such as reducing response times, improving customer satisfaction & engagement, or increasing sales. Ensure that your chatbot aligns with your overall business strategy.

Choose the right chatbot platform

There are many chatbot platforms available in the market, each with its strengths and limitations. Choose a platform that suits your business needs and has the necessary features to achieve your objectives.

Train your chatbot

Ensure that your chatbot is trained on a wide range of customer queries and is capable of handling complex queries. Train your chatbot using real data and continuously monitor its performance to ensure that it is meeting your objectives.

Design a conversational interface

Design a conversational interface that is easy to use and understand. Use simple language and avoid jargon. Ensure that your chatbot can understand natural language and can handle variations in customer queries.

Test and optimize

Test your chatbot with real customers and continuously optimize it based on customer feedback. Monitor chatbot performance metrics such as response times, customer satisfaction, and conversion rates.

Provide human backup

Although chatbots can handle most customer queries, provide a human backup for complex queries or when the customer is dissatisfied with the chatbot's response.

Ensure data privacy

Ensure that your chatbot implementation complies with data privacy regulations and does not collect sensitive customer information without their consent. By following these best practices, you can successfully implement AI chatbots in e-commerce customer support and deliver a better customer experience to your customers.


Offering omnichannel support

Offering omnichannel support means providing a seamless and consistent customer support experience across all communication channels, including email, phone, live chat, social media, and messaging apps. Here are some best practices for offering omnichannel support in e-commerce:


Identify customer preferences

Understand your customers' communication preferences by analyzing their behavior and communication patterns. Identify the channels they use most frequently and the types of queries they ask on each channel.

Use a centralized customer support platform

Use a centralized platform that can integrate all your customer communication channels, such as a CRM or customer support software. This enables your support team to manage all customer queries and conversations from a single interface.

Provide consistent and personalized support

Ensure that your customer support is consistent and personalized across all channels. Train your support team to use the same tone of voice and language on all channels, and use customer data to provide personalized support.

Optimize response times

Ensure that your response times are optimized across all channels. Set response time targets for each channel and use automation and chatbots to handle routine queries and reduce response times.

Use proactive engagement

Use proactive engagement to reach out to customers on their preferred channels, such as sending targeted offers or promotions via email or chat. This can help increase customer engagement and loyalty.

Monitor and measure performance

Monitor and measure the performance of your omnichannel support strategy. Use analytics and customer feedback to continuously improve the customer experience.


By offering omnichannel support, you can provide a seamless and consistent customer experience across all communication channels, improving customer satisfaction and loyalty.


Final verdict

In a nutshell, artificial intelligence, machine learning, and natural language processing are creating wonderful experiences not just in the eCommerce industry but in every niche. AI plays a very important role since the eCommerce industry is booming and online shoppers are increasing on a daily basis. All rising businesses as well as startups need to scale up their game if they want to compete with eCommerce giants in the coming times.