Business Transformation

10 reasons why your eCommerce business needs an AI chatbot

Prabhjot Singh
May 27
5-6 mins

Table of contents

Key takeawaysCollaboration platforms are essential to the new way of workingEmployees prefer engati over emailEmployees play a growing part in software purchasing decisionsThe future of work is collaborativeMethodology

At the speed at which technology is improving, it has become an essential requirement to stay in the business trends. AI-powered chatbots have become one such trend. It has several benefits for the business. Rather than having to interact with a customer service agent, customers these days prefer to have conversations with the AI chatbots as it requires minimum effort and offers instant responses to the customer’s queries. 

What are chatbots? 

Chatbots are artificial intelligence (AI) software that initiates and carries on conversations with customers with the assistance of its intelligence. It can carry out conversations with the customers in several local languages. With the help of a knowledge management system, it instantly provides the customers with the most relevant answer based on the questions of the customers. It eliminates the need to get in contact with a customer service agent for a customer to get their answers by answering the common questions. 

Why are chatbots essential for e-commerce? 

Customers these days do not want to rely on customer service agents, nor do they want to wait in the queue for long and stay on hold on call while the customer service agents gather information. These increasing expectations of the customers can be met with the implementation of an AI chatbot in eCommerce websites. Not only for the customers, but it also has benefits for customer service agents as a result, helping in the growth of the business. 

So now let us dive into each of these key benefits of an AI chatbot: 


Collecting feedback from customers is one of the major aspects of improving your company’s customer experience. Feedback collected from customers can be used to point out the strong and weak points of your company. Companies will be able to improve their weak points and provide their customers with improved services. AI chatbots help in easily collecting feedback from customers at the end of each conversation. 

Reduce operational cost 

As it is observed, most of the customer queries are the same common and repetitive ones. Answering them all requires more time and increases the operational cost or operational expenditure (OPEX). AI chatbots help small eCommerce stores in overcoming this challenge by answering those queries that are common or repetitive. Hence, the operational cost is significantly reduced as the customer service agents would be only left with complex queries. 

Enhance customer experience 

At present, customers do not want to rely on anyone to get their queries resolved. They expect to resolve it themselves. This expectation of the customers can be made true by deploying self-service features on the e-commerce websites such as AI chatbots. Customers can ask questions and instantly receive answers with ease through AI chatbots. This empowers the customers and enhances the customer experience. 

Reduce ticket counts 

Customers raise a ticket every time they face an issue. Mostly the issues are common and repetitive ones. Customers raising tickets for the same queries remarkably increases the number of ticket counts. With AI ecommerce chatbots, these same queries are answered and only those customers raise a ticket that are facing complex issues. Thus, the number of ticket counts is considerably reduced. 

Increase customer retention 

AI chatbots gradually get smarter and learn to answer more than just common queries. Customers, these days, have high expectations from the service providers. It has become necessary to meet these customer expectations to maintain an exceptional customer experience. With its wide range of benefits, it helps in improving the customer experience notably. As a result, the customer retention rate is increased. 

Provide instant responses 

Waiting for long in the queue and staying on hold on call while the customer service agents gather documents and information to provide the customers with the most relevant solutions heavily impacts the deteriorating customer experience. AI chatbots help companies to tackle this situation. With its intelligence, chatbots can provide customers with instant responses as soon as the customers send their queries in the chats. Receiving instant solutions improves the customer experience. 

Multiple query handling at a single time 

Unlike the customer service agents who cannot handle more than 2 or 3 queries at a single time, AI chatbots can handle multiple queries at a single time. Not only by providing the customers with instant responses improves the customer experience but also lowers the operational cost as customer service agents are left to deal only with complex queries. 

Offer 24*7 available customer support 

Unsurprisingly, the customers might face an issue at any time of any day. Thus, the company must provide customer support that is available 24*7. Implementing an AI chatbot helps in offering 24*7 available customer support. Customers can any time ask their questions and get their answers from these chatbots. 

Multilingual feature 

The language might be a barrier while a customer is speaking to a customer service agent. These situations can be prevented with the help of Multilingual AI chatbots. Chatbots can easily converse with the customers in several local languages, whatever the customer may prefer to have a conversation in. This is another major aspect of improving the customer experience. 

Improve customer service agents’ work efficiency 

As mentioned earlier, most of the customer queries are common and repetitive. Answering these queries repeatedly consumes a lot of time for the customer service agents as well as decreases their work efficiency resulting in poor customer interaction and poor customer experience. AI chatbots help the customer service agents by answering these repetitive queries, which as a result, only leaves the complex customer queries to be dealt with by the customer service agents. This saves a lot of their time and increases their work efficiency. 


Summing it all up, AI chatbots are the new norm for e-commerce websites. It provides the company with a wide range of benefits and helps in its significant growth. AI knowledge base chatbot answers customer queries instantly and gets smarter with each interaction. Hence, an AI chatbot remarkably helps in improving customer experience.


Prabhjot Singh

Prabhjot Singh is Marketing Team Lead at Knowmax. Knowmax is an enterprise-grade knowledge management platform that helps in the findability of actionable information from an ever-increasing ocean of information.

Andy is the Co-Founder and CIO of SwissCognitive - The Global AI Hub. He’s also the President of the Swiss IT Leadership Forum.

Andy is a digital enterprise leader and is transforming business strategies keeping the best interests of shareholders, customers, and employees in mind.

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