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The artificial intelligence solutions (AI) are valuable in reducing product returns. Through the data analysis and the automated decision makingAI can improve the accuracy of the product recommendationsoptimize the customer experienceto improve the description and optimize the return process.
Some industries where you can see the greatest benefits of AI solutions in reducing returns are e-commerce, retail, manufacturing and customer services. However, to implement AI in your company and reduce product returns, you need to have the data, the right technology infrastructure, a skilled team, a solid business process, an implementation platform, effective communication and engagement, and regular evaluations.
Return rates on the rise, study finds Online Shopping in Spainand artificial intelligence can help reduce product returns in a number of ways:
A very illustrative example is the following: AI can detect patterns of behavior of each user, so it can detect that a person usually buys shirts of two different sizes, S and M, depending on the brands and the season is more likely to return the size S, so that by offering the available stock, it automatically indicates that there is no stock of size S, if the predicted probability of return is very high, thus avoiding a possible return, minimizing the possibility of losing the sale and above all, eliminating the costs associated with a return.
In short, the AI takes into consideration all available data when offering or not offering certain sizes: behavior of each user, and users with similar behavior, brand and sizes of the garment, season or period of the year, costs and margin of the garment and shipping logistics, probability of generating a return and the costs associated with this return.
The artificial intelligence can help reduce product returns in several industries, some of the most benefited are:
In general, where the greatest benefits can be seen is in industries where the volume of transactions and data is high and in which the process of return is recurring.
Our AI solutions applied in the Retail sector will help you improve customer experience, automate business processes and increase efficiency in decision making.
There are several success stories where AI solutions have helped reduce returns. One example is e-commerce company Zalando, which uses artificial intelligence to improve accuracy in product recommendations and reduce returns. Zalando uses a recommendation system based on AI that analyzes transaction and behavioral data to recommend relevant and customized products to each customer. The system has enabled the company to improve recommendation accuracy by 20% and reduce returns by 15%.
Another example is the clothing company Stitch Fix, that uses artificial intelligence to customize product recommendations and reduce returns. The company uses an AI-based recommendation system that analyzes customer style, size and preference data to recommend relevant, personalized products. The system has enabled the company to improve recommendation accuracy by 30% and reduce returns by 25%.
Of course, we cannot leave without mentioning the case of Amazon: Amazon uses AI in several areas of its business to improve accuracy in product recommendations, analyze returns data for identify patterns and trends, improve the customer experience and automate and improve the returns process.
In order to apply artificial intelligence to your business and reduce product returns, several key factors are needed:
With these key factors in mind, your company will be in a much better position to successfully implement artificial intelligence and reduce product returns.
In summary, the AI can help reduce product returns through data analysis and automated decision making to improve product recommendation accuracy, enhance customer experience, improve product description accuracy, and improve the returns process.
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