Building AI Chatbots for E-Commerce: What to Consider in 2025

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Olha Kanishcheva ML/NLP Engineer, Researcher

With the rise of digital technology, the need for personalized, effective customer experience is at an all-time high. According to Statista, 44 percent of users highly appreciate the help of chatbots in finding product information before purchasing, and another 35 percent of customers use the customer support available on websites. 

Using chatbots for e-commerce helps businesses to stay competitive, increase customer engagement, and boost sales. To demonstrate the significant role of chatbots, we will use a comprehensive beauty platform developed by CHI Software. 

In this article, we will answer common questions about the key factors to consider to build a chatbot for e-commerce, what benefits this innovation will bring to your industry, and how to overcome difficulties during chatbot integration. 

Article Highlights: 

• Chatbots increase conversion rates and make the user experience more personalized with the help of recommendations; 
• Based on information provided by a chatbot, analytics dashboards tracks user engagement, conversion rates, and queries, providing accurate reports;
• The use of ready-made API connectors and webhooks can improves the connection between your chatbot and other systems in real time.

E-Commerce Сhatbot Types & Benefits

AI chatbots for eCommerce come in different forms, each designed to meet specific needs. Therefore, it is crucial to understand the difference between the types of chatbots and the benefits they can bring to your business. 

Chatbot types: hybrid (AI + rules), smart AI-based for natural conversations, and simple rule-based using pre-set scripts

Simple Chatbots

Simple chatbots, also known as rule-based bots, follow pre-programmed logic and can easily cope with answering common questions, such as ‘What are your return policies?’. In addition, simple chatbots help with order tracking or providing general information about the store, which makes them ideal for basic customer service needs.

Smart Chatbots

Smart chatbots are packed with benefits offered by AI development services, which allow chatbots to understand natural language. With an AI chatbot, customers will receive more intuitive and specific answers accompanied by personalized recommendations. 

We will use one of our projects to demonstrate the value of e-commerce AI chatbots in providing personalized customer service. 

Our team developed a smart chatbot for a US-based cosmetics retailer as part of a comprehensive solution that resulted in higher customer satisfaction and reduced costs by automating processes. 

A fully-implemented chatbot can:

• communicate with customers at any time;
• offer personalized recommendations based on the client’s unique preferences and purchase history;
• collect essential information about products in demand, which further helps to improve marketing and other strategies of the company.

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Hybrid Chatbots

Hybrid chatbots combine rule-based systems with machine learning and artificial intelligence components. Hybrid chatbots include rule-based components that are great for handling familiar and simple queries, while machine learning (ML) and natural language processing (NLP) components allow chatbots to understand and generate human-like speech while adding to their knowledge continuously.

In addition, if the hybrid chatbot cannot complete a user’s request or provide a comprehensive answer to a question, it can seamlessly switch over to a human for assistance. This application can be useful in customer support scenarios.

Key Use Cases of AI Chatbots in E-Commerce

Below, we’ll look at how AI chatbots can be used in e-commerce and provide real-life examples of companies that have successfully implemented them.

The most popular applications of AI chatbots in eCommerce

Personalized Product Recommendations

A personalized shopping experience increases conversion rates and helps customers who are not sure what they need. 

For example, Sephora’s AI chatbot offers beauty product recommendations based on a user’s profiles and preferences. Customers can also ask the bot questions about selecting cosmetics based on their individual needs and preferences.

Custom Chatbot Development vs. Ready-Made Assistants: Pros and Cons for Businesses Read more

Automated Customer Service and Order Tracking

E-commerce chatbot development allows companies to automate the processing of common customer requests, such as tracking orders, handling returns, or providing updates on delivery status. Bots ensure that a company can provide its customers with an instant response any time, 24/7 – and reduce the amount of labor needed. As an example, Amazon uses a chatbot to help customers track their orders in real-time.

After-Sales Support and Feedback Collection

E-commerce AI chatbots play a vital role in customer loyalty, helping to create a continuous line of communication, from answering questions about product usage to collecting customer feedback. ASOS uses sales support to manage their customers’ purchase queries by offering help with returns, exchanges, and feedback. Moreover, the chatbot increased customer engagement with the help of the trading function, attracting even new customers who were not likely shoppers.

What goals would you like to achieve with an AI chatbot? Let's discuss the options! Leave your message here

Must-Have Features & Integrations for Effective AI Chatbots in E-Commerce

To answer the question of how to build an e-commerce chatbot, it’s essential to focus on characteristics that can benefit your business. In this section, we’ll look at the must-have features that make AI chatbots indispensable in e-commerce and how to integrate them into your business.

Essential features of your e-commerce AI chatbot

Natural Language Processing (NLP)

NLP allows chatbots to understand, interpret, and respond to queries using conversational language, delivering a personalized approach to every customer. We have previously proven that language models in AI chatbots are game-changers, since they bring high-speed performance, multilingual support, and increased customization to your business.

Multilingual Support

This feature allows chatbots to interact with customers in different languages, ensuring that users from various regions can access the same level of service. 

Multilingual support can also bring changes to the company’s internal workings: AI chatbots for staff productivity use multilingual capabilities to improve communication across international teams.

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Sentiment Analysis

Sentiment analysis allows AI chatbots to assess the emotional tone of customer interactions. After analyzing the mood, chatbots can adjust their tone and offer adaptive solutions. 

Product Search and Filtering

Chatbots can help customers by guiding them through the product catalog. The search process is significantly optimized by analyzing preferences and applying filters, as customers are presented with only personalized offers. Chatbot-powered assistance with product search can help to reduce the time it takes a customer to find what they are looking for.

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Multichannel Support

WIth the help of multichannel support, chatbots can engage customers on multiple platforms: websites, mobile apps, social media, and messagers, providing a seamless and consistent customer experience across all the common channels users are accustomed to. 

For example, in the AI assistant for a corporate ERP system, the integration of multichannel chatbots unifies communications and increases operational efficiency. This optimization is available through synchronization with platforms used for internal communications.

Analytics and Insights

An analytics dashboard extends the capabilities of e-commerce chatbots by continuously tracking metrics, including user engagement, conversion rates, and common queries.

The benefits of these applications can be seen in the solution for an AI chatbot for learning which CHI Software has previously developed. The information received from the chatbot provides valuable data analytics and insights for tracking student performance.

To simplify the implementation process of the above-mentioned chatbot features, we have prepared a table that clearly shows which integrations  should take place for the desired result.

Common AI Chatbot Development Challenges and How CHI Software Solves Them

The process of building a chatbot for e-commerce is fraught with challenges. At CHI Software, we specialize in chatbot development and solving related problems. Earlier, we presented an AI chatbot development guide showing detailed instructions on how to create bots for your business. Therefore, in this section, we will discuss the most common chatbot development issues and tips on how to solve them.

Common pitfalls of AI chatbot development

Accurate Natural Language Understanding (NLU)

Customers expect a chatbot to understand their questions, regardless of the user’s choice of wording and language nuances. The slightest barrier in communication with a customer could risk losing their interest in your business. We recommend paying particular attention to the development of natural language understanding.

Use advanced machine learning algorithms and powerful NLU tools such as Google Dialog Flow and Microsoft LUIS to build AI chatbots for e-commerce. For the best results, consider training the chatbot continuously based on customer interactions.

Chatbot Development Pricing Based on Real Cases Read more

Seamless Integration with Existing Systems

Integrating AI elements into existing systems is an asterisked task. To prevent issues such as incomplete order tracking, slow responses, or errors during transactions, we recommend using off-the-shelf API connectors that can significantly save development time and ensure seamless communication between systems. You can also use webhooks to facilitate real-time communication between your chatbot and other systems.

Hesitating about custom chatbot development? Let's find out where you should start. Read more

Security and Compliance

An e-commerce chatbot continuously analyzes user data to personalize information. In addition to complying with regulatory requirements such as GDPR or CCPA, we insist on using end-to-end encryption, secure data processing methods, and robust identity verification protocols.

Scalability

You need to monitor the chatbot’s workload because the more traffic you have, the harder it is to handle. To prevent unwanted failures during scaling, we recommend using a microservices architecture. This approach allows system components to operate and scale independently.

Pro tip: Using serverless computing, such as AWS Lambda or Azure Functions will regulate the chatbot’s workload and use resources only when they are actively needed. This approach simplifies server management, and allows your chatbot to scale automatically without the need for constant monitoring. 

What Impacts the Cost of E-Commerce Chatbot Development

Developing e-commerce chatbots involves many factors directly affecting the overall cost – below, you’ll find the main ones:

Consider these cost-forming factors before development starts.

Type of Chatbot

The kind of chatbot you develop has a significant impact on the price:

• Simple rule-based chatbots: 

Rule-based chatbots are often used to automate answers to frequently asked questions (FAQs). Since they don’t use advanced artificial intelligence or machine learning, they require less time to develop, simpler programming, and minimal data processing.

• Smart chatbots (AI Chatbots):

Smart chatbots can handle more complex conversations, such as customer support or product recommendations. Integrating and maintaining AI models requires more resources for both development and ongoing updates.

• Hybrid chatbots:

Development of hybrid chatbots requires the complexity of a smart chatbot and additional infrastructure to seamlessly transition between AI and human agents. Integration with customer service teams, analytics systems, and advanced AI capabilities increases both initial development costs and maintenance costs.

Generative AI in Retail: Use Cases with Examples Read more

Natural Language Processing (NLP) Capabilities

Implementing and fine-tuning NLP algorithms increases the complexity and cost of development. The number of supported languages, NLU, and machine learning models increase the cost of development.

Integration with Existing Systems

The more systems you need to integrate, the higher the cost of a chatbot. Your chatbot development project may include integration with CRM systems, and payment gateways.

User Interface and Design

To implement a chatbot for e-commerce with a customized, intuitive user interface (UI) that matches your brand identity will require an investment in design. Therefore, including a design solution will increase the cost.

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Conclusion

Global interest in improving user experience is driving companies to launch an eСommerce chatbot. Chatbots bring benefits such as increased website traffic, data collection and analysis, and personalized orders. 

Building e-commerce chatbots has become a multifaceted process with roadblocks as this demand has grown. Thanks to the company’s experience, CHI Software can handle all the challenges of introducing a new development to your existing ecosystem, or create an entirely new solution.

Ready to enhance your customer engagement with a customized eСommerce chatbot? Contact CHI Software today to discuss your needs and see how we can help you succeed!

About the author

Olha Kanishcheva ML/NLP Engineer, Researcher

Olha boasts a decade-long journey in NLP, currently serving as a researcher at Jena University and a Consulting ML/NLP Engineer at CHI Software. Her expertise extends to various realms of NLP, including text summarization, named entity recognition, and keyword extraction. Olha's Ph.D. thesis explored knowledge representations and information retrieval in librarian systems.