Technology has added more value to the business. It is not only doing things but also doing them better. Machine learning is a type of artificial intelligence that is revolutionizing the e-commerce industry.
It is helping e-commerce companies to make more revenue than in previous years. With the help of machine learning, E-commerce companies can take customer experience to the next level. It is helping to unleash the full potential of an e-commerce business.
It is a revolution in the technology market which is going to improve itself in the days to come and make society a more convenient place of work.
Ecommerce is going through constant changes over the last few years. Machine learning is proved to be a game-changer. According to statistics, e-commerce is growing at a rate of 20% every year. And it is expected that augmented reality (AR) will generate more revenue in the coming years.
Table of Contents
1. Customized Product Recommendations
Product recommendation subsequently helps in increasing the sales of the company. For example, around 35% of the sales of Amazon are due to their recommendation engine. It is tricky to find the buying behavior and pattern of product sales that can be done easily, with machine learning.
An employee can identify trends in buying behavior and suggest a suitable product to the customers, but it will be limited to the knowledge of the employee. With the help of machine learning, it can be done effortlessly over and over again, every time deeper into trends.
2. Better Customer Support
In this competitive business world, it is not only challenging to provide customers a better product but also to serve better quality customer service. Machine learning technology in terms of chatbots has made it easy to provide better customer support. They can use the common language to communicate with the customers, identify the problems, and solve them.
The e-commerce companies has a more creative option to make use of machine learning, in which chatbots is one of them. Automating customer support and enabling self-service helps the companies to provide better customer service at a large scale.
One would be able to provide customer support 24X7 and also reduce the resource cost during the process as a lot of the hard work is balanced out by the chatbots. However, the development of chatbots is still ongoing, and it requires some kind of human interaction for accurate functioning.
3. Target Campaigning, Personalisation, and Customer Segmentation
Unlike the offline store, e-commerce companies have the luxury of striking conversations with the customers and understand their tastes, preferences, and needs. Customers who are purchasing from e-commerce stores are there for their convenience rather than the experience. If they have any doubts regarding the product, there will be no one to clear their doubts immediately and help them with purchasing a particular product.
This is where machine learning comes in. It collects a huge amount of data to provide optimized experience and increase sales and revenue on behalf of the company. It is possible with the help of machine learning to provide the same experience to customers as the offline stores. Machine Learning aids that e-commerce sites to provide a personalized and customized experience to their customers, across the platform.
4. Pricing Optimization
An e-commerce business needs to make optimum pricing for their products. If the prices of the products of e-commerce stores are similar to the offline stores, the chances are high that customers would choose to walk into the offline store because they can assess it first-hand before purchasing it.
It is easier for the customers to compare the prices at the online stores with few clicks and also avail the better deals. Ecommerce businesses can achieve more success by implementing dynamic pricing. Machine learning helps in readjusting the prices of the products according to various factors. These factors include competitor’s pricing, type of the customer, the demand of the product, etc.
5. Protection against Fraud
Ecommerce companies may have the impression of not secure enough. Ecommerce companies need to be very careful as they are more vulnerable to fraudulent activities. It is not uncommon that companies, especially e-commerce companies, are shutting down due to their bad reputation. It is nearly impossible to prevent such fraudulent activities without the use of machine learning. Machine learning can detect and prevent fraudulent activities at large by processing the repetitive, tedious data speedily and save companies from falling on their heads.
6. Effective Search Results
It is true that not all search is intelligent. Not every shopper will be good with keywords. Customers or shoppers should be able to find what they are looking for, and they should be able to find it easily. If the customers are unable to get what they are looking for, they will not be interested to keep looking for it to make the purchase.
To provide effective search, the keyword alone is not sufficient. Factors like pattern in search, preference, similar items enable effective search results. Machine learning can reveal all these factors and show customers exactly what they are looking for. This would eventually increase the sales for the e-commerce company.
7. Prediction of Demand and Preparing the Supply
Every company uses forecasting to predict the demand and prepare their supply. If the company wants to forecast well and make sound data-based decisions, it needs to process a large amount of data faster.
Thus, most of the e-commerce companies are leaving this work to the machines. Machine learning processes large data at a much faster rate but also find hidden insights of people. It will also help e-commerce companies to improve their products and services.
9. Boosting of Omni-Channel Marketing
We cannot deny that Omni-channel is doing quite a lot for e-commerce. It provides e-commerce with higher customer retention, a higher purchase rate, and more engagement. Omni-channel marketing is centered on customer data, and thus, e-commerce needs to process more data that will work to the benefit of your online store.
Machine learning can do this job for an e-commerce company by collecting data and improving algorithms as more data is added over time. It can work more powerfully by updating the data, constantly.
Conclusion
We have seen the powerful application of machine learning in e-commerce as above. We can say that machine learning in e-commerce is here to stay. If you want to run a successful e-commerce company and increase the efficiency of e-commerce operations, you can learn it from machine learning courses.
There is no doubt that many e-commerce companies are embracing machine learning and adding more and more value to their business. Machine learning can be one of the greatest assets to the business that is looking to automate tedious, labor-intensive, and costly manual processes.
It can help you grow in the business, by providing meaningful insights about their customers. It also helps in building better customer relationships and retain them. Machine learning has made our work easy time, and again.
It is a revolution in the technology market which is going to improve itself in the days to come and make society a more convenient place of work.
