Using AI to Optimise eCommerce Conversion Rates


Artificial Intelligence (AI) and Machine Learning (ML) technologies have changed the eCommerce business landscape by reducing human intervention and increasing product personalisation. AI can also improve the eCommerce conversion rate significantly in the modern eCommerce web environments.

This article talks about the minimum viable product (MVP), artificial intelligence, and machine learning in modern eCommerce businesses. We will also discuss different ways to enhance the eCommerce conversion rate with artificial intelligence and how an AI developer can help you with that task.

Artificial Intelligence in eCommerce

The main objectives of using AI extensively in eCommerce include improving conversion rate, reducing human error, increasing customer experience, personalising products, and implementing effective product assortment.   According to the Meticulous Research forecast, the global market value of artificial intelligence in online retail is expected to reach $15.3 billion by 2025 with a whopping growth of about 35.9% CAGR (compound annual growth rate) between 2019 and 2025.

Source: Meticulous Research

AI's role in improving the conversion rate on eCommerce websites is achieved through multiple factors that help the user find the right product through personalised product recommendation, on-site search, and chatbot help. AI and ML implemented in eCommerce websites help analyse customer behaviour and purchase patterns to create a great user experience, improving the conversion rate.

What Is an MVP Web Development?

Minimum Viable Product (MVP) is a software product development method where the product has the core features, functionalities, capabilities, and reliability that are sufficient to satisfy the customers and allow them to provide feedback about the product. The MVP development is perfect for any start-up or innovative software-based business that wishes to keep the risk at a minimum and launch their product at the right time.

The primary purposes of the MVP development process in the software industry include:

·      Understanding the product hypothesis without wasting resources

·      Faster development and deployment of a product

·      The faster building of brand with continual improvement

·      Reduced project risk factors

·      Effective feedback to enhance product

·      Comprehensive testing coverage

Why Should Ecommerce Business Start with MVP before Launching AI?

Ecommerce business has opened new horizons for entrepreneurs. Meanwhile, a considerable risk factor of business is also associated with it; the average failure ratio of eCommerce businesses is almost 97%. In such conditions, allocating a vast number of resources and money in developing a full-scale eCommerce platform is highly risky in the present-day competitive marketplace.

Therefore, the MVP development process is the best way of starting an eCommerce. It will reduce development costs, work hours, and other resources. An MVP development will pave the way for the effective use of artificial intelligence and machine learning features in the right direction to achieve the desired business goals.

How Does AI Help in eCommerce Conversion Rate Optimisation?

Artificial intelligence has become one of the most potent components in eCommerce conversion rate optimisation. It helps eCommerce businesses to improve marketing effectiveness, user experience, employee productivity, operational efficiency, and reduce false positives.

An essential aspect of the implementation of AI and machine learning in eCommerce environments is making decisions based on business intelligence, which is achieved through analysing customer behaviour, interests, and shopping patterns to provide a personalised user experience.

On-Site Search Powered by AI

The latest research suggests that on-site search powered by artificial intelligence can increase the conversion rate of about 216%. AI-powered on-site search analyses customer behaviour and purchase patterns to present the customer the most relevant. This way, AI increases conversion rate on eCommerce platforms significantly.

Personalised Product Recommendations

Personalised product recommendation is one of the most effective tools powered by artificial intelligence to increase the conversion rate and boost sales. Recent research suggests that the share of personalised product recommendation features on eCommerce platform accounts for about 31% of the online sales. More than 12% of the people purchased products that were recommended through a personalised recommendation feature.

Personalised product recommendations analyse customer interests, shopping patterns, and other factors to recommend the most suitable products that the customer will be interested in buying online. Personalised product recommendation function uses geolocation, best-selling option, new arrivals, and web behaviour.

Enhanced Customer Experience

User experience (CX) is the only significant factor that paves the way for a sustainable business and strong brand value. Artificial intelligence creates a desirable outcome by providing the most focused, data-driven, personalised service, and supportive recommendations. Machine learning and artificial intelligence improve customer satisfaction by over 10% in more than 75% of enterprises implementing AI and ML in their eCommerce businesses.

According to the Gartner research predictions, the gadgets and personal devices you use will know much more about the state of your emotions than the members of your family whom you live with. This will be possible because of artificial intelligence and machine learning technologies. The effective use of AI and ML in eCommerce definitely will help improve your feelings and experience.


According to the Business Insider forecast, chatbot's market value will reach $9.4 billion by 2024, growing at 29.7% CAGR between 2019 and 2024. The total share of chatbots in the overall chatting communications is about 39% with an actual problem-solving rate of over 69%. Chatbots are fully powered by artificial intelligence and machine learning.

Different types of chatbots are commonly used to enhance customer support and user experience like text chatbots, voice chatbots, hybrid chatbots, omnichannel ecosystems, and others. Chatbots improve customer experience and offer data-driven information and help create a great online shopping experience.

Final Thoughts

Like in many other fields, artificial intelligence and machine learning have increased significantly in the eCommerce business to create a great user experience and improve eCommerce conversion rates substantially. The future of AI, powered by chatbots, personalised recommendations, on-site search, and other functionalities is indeed very prominent in eCommerce.

Author: Kateryna Boiko

Kateryna Boiko is a Marketing Director at Mobilunity, Provider of Dedicated Development Teams with nine years of hands-on experience in digital marketing. Kateryna managed to work with diverse industries and markets and now is keen on sharing unique cases with the world and coach on topics relevant to Web Analytics and Search Engine Optimization.