Widespread use of e-commerce that comes with digitalization has added new concepts to the sectoral vocabulary. One of these concepts is cross-border e-commerce. Cross-border e-commerce that combines e-commerce, individual customer and micro commerce together develops with the support of artificial intelligence technologies and innovations.
What Is Cross-Border E-Commerce?
Cross-border e-commerce firms are defined as firms that offer to order via online sales channels, bills individual customers abroad without value-added tax and sends the order with micro commerce. If you are wondering how is cross-border e-commerce is made, you can see the regulation No.30324 published in Gazette on 06 February 2018.As stated in the Cross-Border Strategy and Action Plan (2018 – 2020), transactions with Electronic Commerce Customs Declaration are different than traditional commerce. It is possible to complete things easier and faster with cross-border e-commerce compared to traditional commerce. Cross-border e-commerce with less bureaucratic requirements enables billing without VAT, VAT return and benefiting from all exemptions and incentives offered by commerce.
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What Is Artificial Intelligence?
Before talking about the relationship between artificial intelligence and cross-border e-commerce, let’s define artificial intelligence. Software, robots and technological products that can automate all human tasks are called artificial intelligence. Today, with these transactions completed via algorithms, companies employ less personnel for many operational activities and create solutions that are more suitable to customer demands.
Artificial intelligence costs are decreasing every day and artificial intelligence use is becoming widespread. Investors in e-commerce fields are using artificial intelligence in innovative solutions and offer the best customer satisfaction on their website. According to a study finding in 2017, it is recorded that more than 60% of the e-commerce industry uses artificial intelligence tools. 77% of transactions by artificial intelligence takes active roles in marketing and sales processes. Brands increase artificial intelligence investments based both on these data and positive experiences and e-commerce companies are allocating more space to artificial intelligence.
Artificial Intelligence and Cross-Border E-Commerce Solutions
- Artificial intelligence applications can be used in different fields of websites. Well, how can e-commerce brands benefit from artificial intelligence?
- When customers visit a webpage and view a product, recommendation systems that have other products that s/he might like are automatically added to artificial intelligence.
- Chatboxes that are used by customer services and tries to improve automatic answers are also artificial intelligence-based solutions.
- New generation customer support solutions that answer messages from multiple channels on one single system can be used.
- Automatic e-mail and newsletters can be sent.
- Customer communication information, customer tendencies can automatically be classified and target audiences can be differentiated. This way, the return rate can be increased by sending audience-specific posts.
- With artificial intelligence support, it is possible to analyze customers’ movements and tendencies. Artificial intelligence technologies that open a brand new page in data analysis helps to develop audience-specific marketing strategies.
- Comments and questions are easily answered by artificial intelligence. The system that improves brand communication can record and report each chat.
- Cross-border e-commerce firms can process criteria such as which countries are traded, tax ratio, advantages and bureaucratic. Reporting and archiving become easier.
- With digital identifies of the brands, it is possible to match with the customer and complete the transactions effortlessly.
- Artificial intelligence technologies will facilitate communication between commerce firms that sell various countries around the world and customers. In addition to automatic currency converting online system, updates for inventory and delivery times for countries are provided.
- In-site searches are optimized. For example, an individual searching for red might have recommendations for colors with different colors of red. The results of burgundy and vermillion products are also showed.
- There might be different jargons or different names for search depending on countries. For example, while football products in the UK are searched with phrases including the word “football”, the same results are expected with the soccer word in the US. Artificial intelligence algorithms that can recognize different words with result filtering facilitate tasks for both users and brands.
Cross-Border E-Commerce Infrastructure
With advanced infrastructure, it is possible to eliminate and easily overcome bureaucratic barriers and borders in commerce. Developments that facilitate e-commerce/cross-border e-commerce of SMEs and logistic processes are optimized and the share of cross-border e-commerce in commerce increases every day. With developing technology, safe payment methods such as blockchain have helped increase customer satisfaction. Warehouses developed with smart systems, order centers, fast supply chains, delivery options, smart customer relationships applications, and safety systems increased the demand for cross-border e-commerce.
Artificial intelligence systems that enable access to far markets help to increase the share of shrinking commerce share. Companies in Turkey not only target to be the commercial center under domestic settings but also in the Middle East, Africa, Asia and the European market with developing infrastructure. Cross-border e-commerce firms that offer services in the close markets especially in neighbouring countries frequently benefit from artificial intelligence infrastructure to offer suitable solutions to match customer behaviours as an international expansion strategy. In each geography and culture, customer behaviours, expectations, and digital experiences might not be the same. In different countries with different likes, habits, and actions, artificial intelligence will aid the brands that target the best service. Data recorded with artificial intelligence validate or falsify applied solutions and enables brands to shape their strategies.
Cross Border E-Commerce and Logistics
In today’s worlds where both B2B and B2C commerce is increasing, businesses are now experiencing more logistics issues in cross-border e-commerce. While micro commerce sales methods are preferred for individual customers, traditional commerce is preferred in B2B transactions due to large volume. From storing to logistics costs, from inventory check issues to quality assurance, from barcoding to packing and customs operations, each title might indicate an issue in e-commerce. Issues that are hard to solve with human power can be overcome by artificial intelligence.
Reliable and correctly operating algorithms not only provide speed but also trust brands in sales and returning processes. Operational and cost-oriented problems can be overcome when cost and fast operation of artificial intelligence is considered. Applications that encourage cross-border e-commerce and exemptions lead e-commerce firms to cross-border trade. Leading companies in the sector sustain their success not only in Turkey but also in neighbouring countries and multiple continents.
By receiving support from artificial intelligence activities, it is possible to correctly understand customer demands and to find solutions accordingly. Artificial technologies that increase international competitive power of these firms are effective in payment systems, delivery processes, order tracking and customer decision making actions. As a result of expansion of multi-channel supporting platforms, algorithms show less error and faster speed in processes where human intervention is minimized. Robotic technologies and smart systems used in operational processes not only provide advantages in tangible steps like delivery but also in data transfer.
Artificial intelligence that predicts planned shopping of the customers based on online world searches starts running various processes from showing advertisement by targeting websites where customers will order to newsletter sending. Changes in delivery, inventory data and product amount can be instantly recorded and instant interventions can be made. While the companies operate without dealing with shifts and employment issues, customers experience satisfaction with fast solutions. Artificial intelligence is the key to cross-border e-commerce.