Shopify Shipping | Updated September 21, 2023  

AI in eCommerce: Predictive Order Tracking for Shopify Stores

AI in eCommerce is becoming the next revolutionary step. From inventory management, logistics, and supply chain to predicting product delivery, AI has been helping businesses grow in a new landscape. 

Shipping is a complicated process that involves multiple carriers and unexpected events. The use of AI can make the process much easier to manage.

With advanced AI and data analytics, it's easier to forecast the status and location of a shipment at various points until it reaches the destination.

What Is AI-Powered Predictive Order Tracking?

AI-Powered Predictive Order Tracking

It has become a norm that customers expect you to deliver parcels as soon as possible. Once the order is placed, they expect it to be at their door within days. 

According to a recent survey, nearly half of consumers reported that they expect the delivery to be made within two days. A quarter of consumers said that they would wait within 3-4 days.  

Moreover, 80% of shoppers expect a smart order tracking facility for their orders. These stats are setting a benchmark for eCommerce businesses. 

With the use of advanced AI algorithms, data analytics, and big data, it has become easier for eCommerce businesses to forecast the status and location of a shipment.

Unlike the conventional order tracking system, AI-powered predictive order tracking can alert you for what is likely to happen. It gives a better picture and offers better solutions for the problems that are likely to occur. 

Benefits of AI-Powered Predictive Order Tracking

AI in eCommerce

Real-Time Updates

Keeping your customers updated about product delivery fosters transparency and trust. 

The reliable update system allows customers to check where their parcel is, how long it will take to reach their doorstep, and if any delay will arise in the anticipated delivery date.

Providing customers with real-time order tracking promotes the business’s credibility and trustworthiness. In a survey, 24.6% of customers reported that they are extremely likely to return to a brand that provides real-time order tracking.

With AI in order tracking, eCommerce businesses can easily 

  • Convey the most current information to customers
  •  Predict estimated times of parcel arrival more accurately
  • Alerts about any delay due to weather conditions or traffic
  • Keeps customers updated with automated SMS and app notifications

Predictive Analytics

Predictive analytics involves the use of data analytics, AI, machine learning, and advanced statistical models to forecast future outcomes. 

It is the process of assessing and using existing data to predict future outcomes. 

eCommerce businesses can use the existing order delivery data to forecast any potential delays in the delivery process. It helps manage customer expectations

Unlike the traditional system, which involves forecasting future events based on existing data, AI can make adjustments to its predictions as new data comes in. 

As an eCommerce business, you can use this analysis to offer a better customer experience. For example, you can take protective measures — rerouting deliveries — when a delay is predicted. 

AI can also predict delays from the supplies, providing eCommerce business owners another chance to deliver a quality experience.

Personalized Experience

AI in eCommerce Personalized Experience

Providing customers with personalized experiences has become a must in the eCommerce world. Before AI, eCommerce stores had to rely on behavioral triggers, like the search history of potential buyers, assuming that they must be interested in it. 

AI algorithms have changed the entire dynamic. With AI, you can dig deeper into customers' data and extract details to offer a personalized experience, such as:

  • Analyze how customers interact with the tracking features
  • Learn customer's preferences, i.e., whether they prefer SMS updates, emails, and the time of the day when they are more likely to engage with the update notifications.

Based on these insights, AI can provide you with opportunities to offer a personalized customer experience. 

For example, you can use this data to send personalized tracking notifications by sending it to their most preferred channel at the most preferred time of the day.

Automated Customer Service

AI in eCommerce Automated Customer Service

Customer service is an opportunity to connect with the customers. However, sometimes, it results in a flood of queries.

AI chatbots have already made it easy to handle customer support queries and reduced the number of WISMO calls.

With automated customer service, you can cater to all customer support queries in a timely manner. 

You can instantly respond to routine queries — order status and estimated delivery times — by providing immediate answers without requiring you to have a customer support team. 

Automating customer support can result in significant cost-saving, allowing eCommerce store owners to use resources where it is critical, i.e., marketing or product development.

Inventory Management

It is important to keep track of your supplies with their exact price, which is possible with an effective inventory management system. It ensures the availability of products without leaving the customers waiting. 

Predictive AI can significantly help in managing product inventory. It can analyze historical data, seasonal trends, and current market demand to forecast which product is more likely to be ordered in the near future.

Once you know which product is more likely to be sold soon, you can optimize warehouse storage to get the most out of it. AI can help optimize warehouse space, ensuring fast-moving items are easily accessible. 

Customer Insights & Marketing

One of the keys to creating a highly successful eCommerce brand is adapting to customer insights. With AI in eCommerce, you can better understand:

  • Who is your target customer
  • What your customers want/are looking for
  • How they behave
  • How they feel about your brand

With the usual method, eCommerce store owners gather data from various touchpoints and spend days creating customer profiles. 

Machine learning and AI have made it easier. Plus, it results in better-quality data.

AI in eCommerce lets you gather accurate data from various touch points, including browsing behavior, click-through rates, and purchase history. It results in a detailed and better customer profile

It also gives you data on frequently viewed products and abandoned carts, which help in identifying patterns and trends in customer behavior. 

You can group your customer base into different segments based on behavior, preferences, demographic information, and interest — allowing you for more targeted marketing efforts.

Fraud Detection & Prevention

Customer trust is essential in eCommerce. Businesses need to follow prevention mechanisms to guard and protect revenue. 

Online stores are used to protect their customers' trust via regular site security audits, address verification service (AVS), and making sure that all transactions require CVV numbers

Like in any other service, AI offers high accuracy in fraud detection. AI has increasingly been used to analyze large volumes of data, track real-time user behavior, and identify unusual patterns such as multiple failed payment attempts or frequent purchases of high-value goods.

Using this data, AI can assess the legitimacy of an order by instantly cross-referencing transaction details with various databases and risk factors. 

It can take immediate actions such as approving the transaction, flagging it for manual approval, or blocking a transaction attempt altogether — offering better opportunities to stay compliant with industry standards.

Cost Efficiency

AI Benefits in Shipping

AI in eCommerce allows you to automate various aspects of order tracking. You can achieve substantial cost savings and high ROI. 

AI in predictive order tracking can take on most of the tasks and complete them with the highest efficiency.  

With AI, you can

  • Reduce the operational cost of manual labor 
  • Get things done faster and with fewer errors
  • Reduce the costs associated with delays, incorrect orders, and consumer complaints.
  • Optimize routes for delivery and save on shipping expenses.

Plus, all of it results in better customer satisfaction, increased sales, and a high ROI.  

AI in eCommerce FAQs

How is AI improving eCommerce?

AI is improving eCommerce by providing accurate data, offering personalized customer experiences, automating customer support round the clock through chatbots, and optimizing inventory management. It facilitates better customer experience while reducing costs and helps improve credibility. 

What is the role of AI and ML in eCommerce? 

AI and machine learning (ML) work as a backbone in data analytics, predictive modeling, and customer segmentation in eCommerce. They can automate various processes — recommendation engines, fraud prevention, and more — allowing businesses to offer personalized, secure, and efficient shopping experiences.

What is the role of AI in Shopping? 

AI in shopping can help store owners enhance customer experience. It offers personalized product recommendations, allows visual and voice-activated searches, and provides real-time customer support through chatbots. It also streamlines the checkout process and offers predictive analytics to help you stock products efficiently.

How Rush's AI-Powered Features Can Help Boost Sales

Rush is an eCommerce post-purchase automation app for Shopify store owners. It comes with a powerful stack of features, including Smart Estimated Delivery Date which lets you display predicted delivery dates on your product page. 

Rush AI accurately predicts transit time and any unforeseen event that might cause a delay in delivery and provides real-time tracking updates.

It gives you the opportunity for higher conversion rates on your product page, plus fosters loyalty by keeping things transparent. 

As a result, you can enhance customer experience and improve conversions and overall ROI.