Boost Your Sales Numbers, with Chatbot in eCommerce: Expert Guide by Biz4Group

Before we assure you that chatbots can actually increase your sales numbers in eCommerce, let’s have a look at the figures and statistics associated with chatbot in eCommerce.

  • According to a research report, the approximate value of chatbot transactions in eCommerce is about reach over $112 billion, by 2024. The relevant reason that complements the figure is the ability of chatbots to involve users in every step of the customer journey, from choosing a product to returning it.

  • By 2024, it is expected that chatbots can save businesses upto 2.5 billion hours of work!

  • Capgemini report says that 74% of consumers agree on the usage of conversational assistants, for the purpose of research or buy products & services.

With 20+ year of experience, our team of 200+ professionals excel in developing advanced AI solutions and ecommerce chatbot provider. We are also recognized as Trusted Advisor by our numerous clients. Here, in this guide, we are going to help eCommerce businesses understand the importance of chatbot in eCommerce, their use cases, and relevant strategies to boost sales, with enhanced customer experience. Our expertise ensures that your business maximizes the potential of custom chatbot development technology.

Also Read: Create Future of Shopping with Generative AI in eCommerce

Understanding Chatbots in Ecommerce

Let’s begin with understanding the basic aspects of chatbot in eCommerce as one of the enterprise eCommerce solutions explained below:

Chatbots are software applications, designed to convey human conversation, in the form of text or voice format, by simulation. They can be considered as virtual assistants, meant to interact with customers, provide product recommendations, and facilitate transactions.

The technical functioning of chatbots occurs through NLP, and Machine learning, i.e through these technologies chatbots understand, and respond to customer inputs.


Types of Chatbots Used in eCommerce (AI-Based, Rule-Based)

1. AI-Based Chatbots

AI-based chatbots are nothing but leveraging AI and machine learning to understand and respond to customers’ daily basis queries.

  • These chatbots have got learning capabilities, to optimize and improve their responses from past interactions over time.

  • By leveraging NLP, they provide personalized responses based on customer behavior.

  • For example – IBM Watson Assistant, Google Dialogflow.

2. Rule-Based Chatbots

These chatbots follow a set of commands, in the form of if-then-else conditions, for responding to customer queries. In a nutshell, we can say that functionality of such chatbots is based on predefined rules and scripts.

  • As a part of characterstics, we can say that these chatbots provide structured responses, i.e. fixed script or flowchart.

  • Such chatbots have limited learning. They do not learn from interactions, and are unable to handle complex queries.

  • These chatbots can only handle straightforward, and repetitive tasks. For example, answering FAQs, or processing simple commands.

  • For example – Chatbot plugins used for platforms like Shopify, and WooCommerce.

Also Read: AI and Augmented Reality: Transforming the Online Shopping Experience

Benefits of Using Chatbots in eCommerce

Let’s delve into the benefits of using chatbots in eCommerce as an integral part of eCommerce store development:


1. Enhanced Customer Service and Support

It goes without any doubt that chatbot in eCommerce can handle a large variety of customer inquiries, whether it is product information, or order tracking. Chatbot ensures that customers receive instant and accurate responses. Hence, it results in enhanced shopping experience and increased customer engagement.

2. 24/7 Availability and Instant Responses

24/7 availability feature of chatbots bring customers from different time zones on an eCommerce platform, for buying products, resolving queries, and other reasons. This again results in increased convenience, and potentially higher sales.

3. Personalization and Tailored Customer Experiences

Each individual carries different shopping preferences. Therefore, chatbots based on customer’s browsing history and past purchases offer tailored product recommendations and promotional offers. This level of customization makes shopping experience more engaging.

4. Increased Engagement and Reduced Cart Abandonment

Chatbots are proactive in initiating a conversation. It guides customers through their shopping journey. For example, by providing timely reminders chatbots encourage customers to complete purchases from their cart. Also, chatbots address concerns in real, that reduces cart abandonment too.

Also Read: Tips to Optimize AI Voice Search for eCommerce – Insight by Biz4Group AI Experts

Strategies to Boost Sales Using Chatbots

Below are some mentioned strategies to boost sales using chatbot in eCommerce:


1. Personalized Marketing and Product Recommendations

AI Chatbot for eCommerce website is built in a manner that it can analyze customer behavior, purchase history, and choices, to offer customized product recommendations.

Such customized recommendations to all interacted customers enhance the latter’s shopping experience, thus results in increased customer engagement.

Example – Marketing messages like reminders about abandoned carts, notification about new arrivals, etc.

2. Upselling and Cross-Selling through Chat Interactions

Chatbots are also capable of upselling and cross-selling products, during customer interactions. They can suggest complementary products, while a customer is showing interest in a particular item. It thus results in boosting the average order value.

Example – For a customer who is buying a smartphone, the chatbot also shows accessories like cases or screen protectors.

3. Handling Customer Queries and Providing Instant Support

Providing instant support to customers is one of the primary functions of a chatbot. In eCommerce, it addresses queries like order status, return policies, or product information.

Such instant support leads to increased customer satisfaction, and thus increased sales. This is because customers are likely to complete their purchases when their queries are resolved instantly.

4. Utilizing Chatbots for Promotional Campaigns and Discounts

On an eCommerce platform, customers should be aware of the ongoing sales and discounts. But, how is it possible to not skip observing them? Here is how chatbots inform customers about ongoing promotions, and special offers, by engaging them in interactive conversations.

5. Collecting and Analyzing Customer Data for Targeted Marketing

Businesses need to create targeted marketing campaigns, in such a way that it resonates with their audience. Therefore, chatbots collect data on customer preferences, and interactions that can be analyzed to gain insights into customer purchasing patterns. This method drives higher engagement and sales.

Case Studies and Success Stories

Here are some case studies of renowned companies who hold their own custom eCommerce development services:

1. Real-World Examples of eCommerce Businesses that have Successfully Implemented Chatbots

  • H&M – The clothing retailer developed a chatbot that acts as a virtual stylist. The chatbot asks style questions, builds a customized style platform, and recommends outfits accordingly.

  • Whole Foods – Using the brand’s Facebook Messenger bot, customers can find recipes based on ingredients or their dietary preferences. Not only this, but the bot also helps in searching for nearby store locations.

2. How these Businesses have Seen a Boost in Sales and Customer Satisfaction

Future Trends in Chatbots and eCommerce

Here we are throwing light on the future trends in chatbots, as a part of Generative AI development services and eCommerce:


1. Emerging Technologies and Innovations in Chatbot Development

  • Multimodal Interfaces

    Chatbot in eCommerce are going to support multimodal interfaces, i.e. it would support and integrate voice, text, and visual interactions, together. This would provide more engaging and immersive experience.

  • Augmented Reality (AR) and Virtual Reality (VR)

    Chatbots are going to be integrated with AR & VR technologies to amplify interactive support experiences.

  • Voice Bots Expansion

    There will be adoption of voice-based chatbots, and a simultaneous advancement in speech recognition and synthesis technologies.

2. Predictions for the Future Impact of Chatbots on eCommerce

  • Virtual try-on & fitting

    Chatbot in eCommece are soon going to act as personalized fitting apps. This would thus reduce returns on shopping and improve customer experience, also as a part of AI use cases in eCommerce.

  • Integration with Voice Assistants

    Chatbots are predicted to be integrated with voice assistants. It is due to the fact that 80% of individuals are currently using voice assistants, whereas 50% make purchases through them.

  • Primary Customer Service Channel

    As per a report by Gartner, chatbots are going to be the primary customer service source for eCommerce businesses by 2027.


How Biz4Group Implemented Successful Chatbots for its International Clients?

Here are some successful projects fulfilled by Biz4Group, a Generative AI Development Company:

1. Mobile Petrol Station (MPS)

This chatbot in eCommerce application is developed by our team of developers, who manifested our client’s vision into reality. The application carries all the features that are required to deliver fuel-on-demand for a customer. Some of its major features are listed below:

2. PDF Consultant

PDF Consultant is an AI-based chatbot application wherein a user gets to upload a PDF file to resolve doubts and queries related to the content contained in the PDF file. This AI-based application performs data extraction, storage of data, and generates research ideas, with custom addition of features as required by the client. Below are some major features associated with it:

  • Data Extraction

  • Text-Analysis

  • Avatar-based Voice Search

3. NextLPC

NextLPC is an Avatar-based eLearning platform for Psychotherapy students. Here the students are taught lessons, case studies as similar as a real tutor would do. Here is a glimpse to its major features:

  • AI Avatars

  • Dashboard

  • Voice Assistance

Here is what our client has to say on our team’s performance:

“Biz4Group's AI development team has been outstanding. Their excellent communication, timely delivery, innovative solutions, and genuine commitment to our project have made a significant impact. I highly recommend Biz4Group for any tech development needs.”

Meet the Author


Sanjeev Verma

Sanjeev Verma, the CEO of Biz4Group LLC, is a visionary leader passionate about leveraging technology for societal betterment. With a human-centric approach, he pioneers innovative solutions, transforming businesses through AI Development, IoT Development, eCommerce Development, and digital transformation. Sanjeev fosters a culture of growth, driving Biz4Group's mission toward technological excellence. He’s been a featured author on IBM and TechTarget.

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