The current world revolves around a digital sphere. People want help and guidance instantly and anytime round the clock. Thereby, the companies struggle and do their best to meet the requirements of their valuable customers. 

But it is unfortunate sometimes to realize that it becomes difficult to address all their concerns together. Manual efforts cannot reach each individual and resolve their problems.

However, chatbots have appeared to meet this demand. Chatbots provide guidance, support, and the necessary assistance to find information, products, and services, and guide the users to make purchases. 

Do you wonder what makes chatbot an effective method to boost the conversion rates in e-commerce? 

Let us know how chatbots can be used to improve the conversion rate of an eCommerce website.

What is a chatbot and how does it work?


A Chatbot is a computer program that helps your business simulate conversations with human users across the internet. They are the assistants who communicate with human beings with the help of Natural Language, through voice or text.

Chatbots analyze the typical tasks and the queries they get and respond to them like a real person based on the predefined set of scripts or code. If you ask any question, they reply based on the database available related to those questions at that time.

Chatbots either redirect the conversation or pass the query to the human operator for assistance if a concept is not programmed to understand. The complexity of a chatbot is a combination of software, and the data chatbots can access.

Why does your business need chatbots?


Chatbots work faster and smarter and reduce the manual efforts of reaching every single potential customer. There are many reasons you need chatbots for your business, and here are some of the major reasons you should go for a chatbot.

Helps with your sales funnel

The team cannot treat every individual user. Chatbots help and provide support to every visitor the moment they land your page.

24 X 7 assistance

There is no nap or no break when bots are there for your help. Chatbots don’t get bored answering your queries several times, and they are always available to consider your FAQ and answer them effectively.

More revenue

Chatbots can give you recommendations for shopping purposes. This helps users to purchase easily. They make the shopping process quick, and the whole purchase can be made a great experience using a chatbot.

You don’t have to make people go through the shopping process from scratch.

The chatbots can show and recommend a series of products for upselling or cross-selling.

In this way, you can also reduce cart abandonment.

Improves the customer support

With chatbots, your business can offer the best customer support. The experience of the customers will be improved. 

Chatbots can meet your customers’ requirements and guide them based on the direction they wish to go.

The bots are also keen to work on the areas to improve based on the feedback collected from the customers.

Increases the retention rate

The chatbots ensure that your customers’ queries are resolved in the least possible time. Hence the customers remain happy and content. 

In this way, your business can build a high User Experience and retain the customers with the flexibility of the chatbots.

E-commerce chatbots improve the earning

The bots interact with the target audience in the best possible ways. This also helps your business trigger e-commerce and help close several deals with multiple interactions at the same time.

Conversion vs conversion rate


Every business would initiate a good Call To Action that prompts the audience to take a desired specific action.

CTAs can serve different kinds of action for your business.

For instance, here are some examples;

  • Sign Up
  • Subscribe Now
  • Download
  • Create account
  • Join us
  • Add to Cart
  • Add to Wishlist
  • Buy Now
  • Order Now

These are all certain call-to-action words and phrases.

Completing any of these transactions or specific actions brings your leads one step closer to the process called a conversion.

Conversion rate refers to the rate of percentage of the visitors who have taken actions for the conversion.

This is an important metric of e-commerce where chatbots enhance the e-commerce conversion rates.

E-commerce conversion rate

If your leads leave the sales funnel at a point and don’t finish the purchase as desired, then the company loses effort and money for those particular leads.

You need to analyze the sales pipeline. Optimizing the conversion rates is important to retain customers.

You can try various methods to have your customers convert and close the deal. 

Also, keep an eye on the stage till where your customers are with you and how to make them move towards purchasing your product or service.

In an e-commerce business, the e-commerce conversion rate is the ratio of transactions to the number of sessions. 

Formula to calculate the e-commerce conversion rate

To calculate the conversion rate in e-commerce, you can use the following formula:

Conversion rate(in %) = (Number of Conversions/Total Sales) * 100

If your conversion rate is high, it means that you successfully get and convert leads into paying customers.

If your conversion rate is low, many people visit your website but don’t take the desired action.

Choosing the right chatbot for your e-commerce shop


To calculate the conversion rate in e-commerce, you can use the following formula:

Conversion rate(in %) = (Number of Conversions/Total Sales) * 100

If your conversion rate is high, it means that you successfully get and convert leads into paying customers.

If your conversion rate is low, many people visit your website but don’t take the desired action.

There are various chatbots available for customer support with different features. Let us discuss them in detail.

1. Menu based chatbots



These chatbots are also known as button-based chatbots, and they are the most basic and popular chatbots available in the digital market.

The peculiarity is that these generally answer the FAQ with a predefined set of replies. By collecting the frequently asked questions, they get the answers and make responses in a predefined format which makes the process easy.

2. Keyword recognition based chatbots



These chatbots are advanced. Here, the customer types for the word, and the bots respond specifically to that word/ phrase, which customers searched for.

The bots either use customized keywords or AI to match their response.

They respond with the help of recognition tools driven by learning techniques and algorithms. 

3. Artificial intelligent chatbots



AI chatbots can also help with increasing and manualizing sales. These are the smart types of chatbots.

AI chatbots understand the language through deep learning, and they stay learning based on the inputs they receive. These are also called machine learning chatbots.

The bot responds when the customers enter queries and collect the conversations, remembers them, and learns to respond later, which are conversational chatbots.

There are customized AI chatbots for e-commerce sites available.

Which chatbot is best for your e-commerce shop?

If you are confused about which chatbot to use for your e-commerce website, it again needs some points to be noted carefully.

  1. Analyze the nature of your business. The best chatbot will be the one that highlights the USPs of your business and also provides value to your customers.
  2. The one that delivers results or goals you have already set.
  3. Empathize with your audience and choose them according to their pain points.
  4. Keep a note of your style of delivery and the UX preferences to deliver services.
  5. Conduct a usability test before the integration of the bot to the users.

Chatbot solutions to improve e-commerce conversion rate

Manage the customers who return with special offers

The chatbots take special care of the people who revisit the store. They offer the potential customers a small discount and try to re-encourage them to purchase at a discounted price.

Collect the forms in a friendly tone

People are generally not interested in filling up long forms without proper help or support. Chatbots are natural and engaging, they use short message requests with limited text and gather information at any time of day/night.

Engage the customers

People might drop the purchase plan for many reasons: Shipping cost, payment security concerns, finding a better option, or no interest in setting up an account with your business.

Even when they hit ‘save for later,’ they might forget about it or lose interest in your business. Quick chatbot messages can sometimes help your customers get easily convinced and induce purchase.

Welcome message and greetings

The customers love to be greeted. Chatbots create a good impression by using welcoming phrases and greeting the visitors. 

They not only offer assistance but also introduce the company through a casual and friendly conversation.

Quick and effective FAQ answers

Chatbots are quick and efficient in providing a timely response to all queries. They are an affordable and user-friendly option for your business, and they are also patient enough to suggest answers for your customers.


Chatbot technology is fundamental and relevant for your e-commerce business. You can choose to be in a space where your users are.

The only thing you have to do is position the chatbots on the right platform according to your needs.

A chatbot is an excellent source that can provide a remarkable user experience and can be dealt with according to the user’s convenience.

They can indeed turn more viewers and Chatbots and potentially lead to your customers.


About the author

Rithesh Raghavan is the Director at Acodez, a Digital Agency in India. Having a rich experience of 15+ years in Digital Marketing, Rithesh loves to write up his thoughts on the latest trends and developments in the world of IT and software development.