With the advancement of science and technology, you can shop for anything from groceries to garments and automobile parts to food, sitting at your home and ordering from your cell phone or tablet. Thanks to the rise of e-commerce, life has become so hassle-free, and you can shop and get things delivered to your doorstep. But hey! Guess what? Things did not stop here. To make the process more engaging and satisfactory, e-commerce websites have now turned to implementing chatbots for an overall satiating customer experience.
A lot of e-commerce giants such as Amazon, Walmart, eBay, H&M, Sephora, and others have implemented chatbots, and guess what? They were never so stress-free and happier in terms of dealing with regular customer requests and responding to their general queries. According to a report by Gartner, the cost-effectiveness provided by chatbots, along with their ability to drive positive customer emotion, chatbots will eventually become the primary customer service channel by 2027.
So now you might ask, what are e-commerce chatbots, what are their benefits, and which platforms implement them? We have all your answers. You can refer to the sections below, wherein we have elaborated on various topics crucial to e-commerce chatbots. We have referred to several websites, including several e-commerce giants, and have articulated this whole blog for your better understanding. So, let's not waste any more time and get started.
8 Key Features of E-commerce Chatbots
1. Ability to absorb the product catalog
2. Respond accurately to product-related questions
3. Integration and compatibility
4. AI and machine learning capabilities
5. User experience
6. Data security and compliance
7. Customization
8. Performance metrics evaluation
What are e-commerce chatbots?
E-commerce chatbots are a firsthand communication between the customer and the concerned e-commerce website. If the chatbot is not successful in providing sufficient answers, it is then that it will escalate to a human intervention. So, now, if we define e-commerce chatbots, they are AI-powered virtual assistants that comprehend a customer's or user's queries and respond and guide a user through the entirety of their buying process.
If I explain this to you with a practical example, it would go like this. Have you ever faced a situation where you wanted to change a particular order of yours, or maybe you got delivered some other product instead of what you ordered? If yes, while reporting the same issue with the concerned e-commerce website, did you come across a push notification, a pop-up, or a new page wherein you were asked some questions based on your issues? That, my friend, is an e-commerce chatbot, to be exact.
So, chatbots are basically AI-powered tools that help customers by dealing with their general queries related to their products. In this case, e-commerce chatbots are AI-powered tools that respond to various queries that are put by a customer, such as, Where is my order? When will my order get delivered? I want to delay the delivery by a day as I won't be available.
Key features of e-commerce chatbots
Before you move forward to explore more about the intricacies of e-commerce chatbots, let's get you familiar with the benefits. It is obvious that today when you are studying e-commerce chatbots, you must also know what the features are of an e-commerce chatbot. In the sections below, we have elaborated for you on the top 8 features of e-commerce chatbots.
1. Ability to absorb the product catalog
Any e-commerce chatbot should have the basic ability to absorb and update all your product details. This is required for situations wherein users come to know about a specific product. If your chatbot is fed with relevant information about the product, then it can automatically respond accurately to any questions regarding the product. However, your chatbot must regularly update its knowledge about the product based on every recent development.
2. Respond accurately to product-related questions.
Most often, before buying a product, customers have tons of questions regarding that particular product. What is the product price? What is the product duration or longevity? Is there a warranty for the particular product? So on and so forth. And here comes our second feature of an e-commerce chatbot. Before deploying a chatbot, you must train your chatbot to respond accurately to every customer query. So that as and when there are queries regarding any product, your chatbots respond to each of them accurately.
3. Integration and compatibility
The ability to integrate with the existing e-commerce platform constitutes the third key feature of an e-commerce chatbot. The e-commerce chatbot must be flawlessly and smoothly integrated with the existing e-commerce platform. This will eventually help transfer crucial information about a product to a user or a prospective buyer who needs to converse with a live agent for the whole process.
4. AI and machine learning capabilities
AI and machine learning are powerful tools when it comes to a chatbot interacting with potential users and customers by reading and comprehending previous conversations. In simple words, through the correct implementation of AI and machine learning, with a gradual increase in conversations with the e-commerce chatbot, it will be able to respond more accurately to questions thrown by users. Apart from this, the chatbot will also be able to suggest personalized recommendations based on previous conversations.
5. User experience
For running a successful online or offline company, you always have to be in the shoes of the user. No matter how efficient your chatbot may be, you must always see that it is user-friendly and an easy-going experience. Your e-commerce chatbots' users must never get the impression that their words or their thoughts are not being heard or understood. While training and implementing an e-commerce chatbot, always remember that the easier it is to operate the chatbot, the better will be the communication. This, in turn, will result in customer satisfaction and improved product sales.
6. Data security and compliance
Not only in e-commerce but chatbots across every industry should make sure to protect a customer’s data and information. Considering the sophistication of fraudulent activities all across the globe, securing the vulnerability of customer data should be the utmost priority of any chatbot. Your chatbot must meet SOC 2 Type 2 compliance.
Implementing these will, in turn, lead your customers to believe and trust that you take your customer data security, privacy, and confidentiality seriously. Apart from this, you must also ensure that your chatbot adheres to Global Data Protection Laws, like the GDPR in Europe or the CCPA in the US.
7. Customization
The key to a successful business is customizing. Your e-commerce chatbots should be trained in a way that they can customize themselves depending on the audience they are interacting with. The way your chatbot interacts depends a lot on your client retention. The more personalized and scalable conversation a chatbot offers, the higher the chances of customers buying your products.
8. Performance metrics evaluation
The last and final feature that every e-commerce chatbot must incorporate is the feature to evaluate its work. You must regularly check how well your e-commerce chatbot is working in terms of responding to its customers and if they are responding accurately. The second thing that you must check is whether your customers are happy and satisfied with the overall working of your e-commerce chatbot. Once you regularly evaluate these steps, you will have clarity on what actually is going on, and this will eventually help you move forward with a positive expectation.
So, with all these key features discussed above, you might as well think about which platform will give you so many benefits to offer. Copilot.Live is your answer. We at Copilot.Live strive to provide all of the features mentioned above. Additionally, we also give you the chance to change the mood of your chatbot.
Bet this came as news to you! At Copilot.Live, you can alter your chatbots based on the mood and the degree of professionalism that you are dealing with. If you are dealing with a professional client, you can alter your chatbot mood accordingly, and if you are dealing with a college student, you can choose a fun and casual chatbot as per your needs. Want to know more? Visit us on Copilot.Live
Types of e-commerce chatbots
So, we discussed what e-commerce chatbots are and what the key features of an e-commerce chatbot are. Now, we will discuss what the different types of e-commerce chatbots are. In general, there are three broad classifications of e-commerce chatbots, namely,
- Smart e-commerce chatbots
- Scripted e-commerce chatbots
- Hybrid e-commerce chatbots
The sections below will discuss each type of e-commerce chatbot in detail for your reference.
1. Smart e-commerce chatbots
Smart conversational chatbots are trained chatbots. With the pre-implemented NLU and machine learning strategies, these chatbots understand the questions raised by customers and provide a personalized and engaging response. With every conversation, these chatbots gain clarity on the types of responses that need to be put to certain types of queries. Smart e-commerce chatbots are specially helpful in cases where the customers expect someone to be at their side when they require assistance.
2. Scripted e-commerce chatbots
The basic point of difference that comes between a smart and a scripted e-commerce chatbot is the fact that scripted e-commerce chatbots are restricted to preset or preferred questions. Any query that is outside their domain would require human intervention. Scripted e-commerce chatbots are traditional chatbots that cannot personalize conversations and make them engaging.
3. Hybrid e-commerce chatbots
Hybrid e-commerce chatbots are basically a combination of all the positive points of both scripted and smart e-commerce chatbots. Hybrid chatbots help collect information about a particular client, take them through a guided product description journey, and provide solutions for complex questions.
Benefits of e-commerce chatbots
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As per a research study by the Journal of Theoretical and Applied Information Technology, the use of chatbots and virtual assistants has witnessed a gradual incline, and almost 80% of businesses have already implemented or are in the process of implementing AI chatbots. The research also states that by 2027, chatbots will become the primary mode of customer support for almost a quarter of all e-commerce businesses globally.
E-commerce chatbots are not only transforming the whole arena of shopping and buying but simultaneously helping buyers and customers have an enriching experience. With such a huge market that is only expected to rise in the near future, there is evidence that both customers and buyers are benefiting from optimizing the use of e-commerce chatbots. Some of the primary benefits of using e-commerce chatbots are as follows:
1. Personalization
The key to a successful business is offering your customers what they ask for in a personalized way. AI e-commerce chatbots gather information about your potential buyer and customer’s preferences and help you protect your products in an ideal way that suits their needs. Reading the customer queries will eventually help you align your product to their needs and requirements, which eventually boosts sales of your product.
2. 24/7 accessibility
Being accessible 24/7 is one of the most significant benefits of an e-commerce chatbot. It is humanly not possible to work throughout the day to cater to every kind of customer. Chatbots here play a significant role as they can be accessed 24/7 from anywhere across the globe. This will not only reduce work pressure but will simultaneously help in the overall cost-cutting for the e-commerce organization.
3. Cost-effective
With the onset of e-commerce chatbots, the overall cost was reduced by an astounding rate. The amount of money that was initially spent on customer support executives is now being saved, all thanks to the implementation of e-commerce chatbots. With bearing just the implementation costs, organizations, big and large, are saving up a significant amount. In almost every case, chatbots are the primary and firsthand communication with any user, with only a handful of them needing human intervention. This leads to minimal human error and provides heightened customer service.
4. Recovering the shopping cart
Unused carts can be a very profitable source of income, even though many people are not aware of this. Not all people who leave their carts behind do so intentionally. They might just become sidetracked, switch to a different tab on their computer, and forget what they were going to buy a few minutes ago. Your consumers can clear their carts or check out by using chatbots to alert them of abandoned carts. These clients might buy something even if they don't buy everything.
5. Product recommendation
With e-commerce chatbots, customers are now given a total idea as well as recommendations of a product that they are willing to buy. For example, on Amazon, if you're buying a product, you will immediately be accessed to a new page that shows recommendations that you might choose that go well with the product that you are currently purchasing. These personalized offers make customers feel important as if they are speaking with a representative.
E-commerce chatbot use cases
E-commerce chatbots are used for various purposes. Some of the crucial ones that you must be aware of if you are planning to build an e-commerce chatbot in the future are as follows:
1. Finding product
With the current hectic schedule, everyone becomes occupied the moment they wake up. Likewise, your customers may have limited time, and they would prefer to purchase their needed things in a hurry without going out of their way in order to find them through your site.
With your chatbot, you are able to ease the process for them to send a message letting you know what they need rather than having to navigate through your website, have the page load, and search your products, hoping that they find what they want. Your e-commerce chatbot can also present a carousel of products that they need. Other than this, your e-commerce chatbot can also facilitate your would-be customers in making purchases directly. They don't have to go through a complicated, multi-step process, which would leave them annoyed and wanting to quit.
2. Customer service support
E-commerce chatbots can quickly respond to a varied range of customer queries. In cases where a customer support executive is busy or is preoccupied with another task, e-commerce chatbots can directly respond to such customer queries. In a lot of cases, it has been seen that customer support executives get tired of answering the same question time and again, but in cases of e-commerce chatbots, they can deliver the task efficiently.
For example, a lot of customers might have the same concern about the return policy, and they might ask the same question time and again. This might somehow become monotonous for a customer support executive, but for chatbots, revert efficiently.
3. Boost customer engagement
You know, this is a common thing: the design you choose for your website might not always be good from the customer’s point of view. And, since in business customers are your priority, keeping them engaged is your primary task.
Sometimes, people prefer a built-in messaging system because they find it more convenient. Assume that your eCommerce website offers a chat facility on its website that facilitates faster client communication. In that scenario, a chatbot can quickly respond to inquiries from clients, show product categories, and make suggestions.
4. Provide shipping information
It is a very common phenomenon for you, me, and everyone to get impatient after placing an order for a product that we have been longing to buy. Your chatbots can assure your customers by sharing the shipping information of the ordered product. Thereby, your customers will be able to know where their products are and a tentative time when they can expect their products to get delivered to them. This way, you will not only have a good opinion about yourself from the customer's point of view, but also they will come to your website to buy products in the future.
List of e-commerce platforms that implemented chatbots
Now that we are almost nearing the end of our blog, we would finally like to draw your attention to the top 3 e-commerce platforms that have implemented chatbots. You must now be very well-versed in e-commerce chatbots; do you recall the names of some of the top e-commerce giants that incorporated chatbots? Well, we have it for you.
Amazon
Amazon launched its chatbot, Rufus, in July 2024 in the US. The key benefits that Rufus offers are that it establishes integration and security permissions, collaborates and responds quickly, and configures AWS resources safely. Rufus is so far primarily used for finding and acting promptly on cost anomalies, improving incident management response time, and providing the DevOps team visibility into application events.
Sephora
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The chatbot for Sephora is called Sephora Virtual Artist. It was launched in 2016. The Sephora chatbot helps scan an image, object, or face to recommend matching cosmetics along with it. Apart from that, Sephora Virtual Assistant gives out makeup tips and asks questions to collate information and provide suggestions.
Did you know? The Sephora chatbot assistant has witnessed 11% higher conversion rates than any other platform for booking in-store makeup appointments.
H&M
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The chatbot for H&M, known as H&M Bot, provides its users with fashion advice and recommends accessories as per their search and finds. H&M Bot uses NLP to comprehend users’ queries and requests and thereafter provide personalized styling tips. Some of the key benefits of using the H&M Bot chatbot are increased customer engagement and shopping experience and higher conversion rates.
In today’s era of everything being machine-driven and convenience being the fundamental point for all, chatbots are the new replacement for all things that were time-consuming and cost-consuming as well. Chatbots are the future that we all agree to disagree on and are an essential part of not only the e-commerce industry but also every industry.
Integrating chatbots might not only save you from spending millions of dollars but also give you a space of commonality between you and your prospective buyers. E-commerce chatbots not only will make the business run efficiently and effectively but simultaneously will foster a bond of enriching buyer and seller experience.
