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The impact of Machine Learning on the e-commerce industry

November 14, 2020
Adil Shafique

If you are an active social media user and you buy products from e-commerce sites, you will have noticed that you often see adverts of the same products or website you viewed displayed on your social media feed. You may have also noticed that you get adverts for similar products when you purchase a product online. You are not alone, and everyone else with similar online behavior experience the same thing as you do.

How does this happen? The emergence of artificial intelligence, machine learning, and big data is responsible for this.

Big industries including healthcare, finance, government agencies, and retail companies, all utilize machine learning to assist consumers in making the right decision when buying a product or service.

Important things to know about Machine Learning

Machine learning (ML) exists when you create a program that assists a computer to discern data. You then send the data to the computer, analyze, sort, and determine the data on its own. One essential thing about machine learning is that it continues to learn as new information is introduced.

Several algorithms are used in Machine Learning, and they are listed below.

  1. Supervised machine learning algorithm
  2. Unsupervised machine learning algorithm
  3. Semi-supervised machine learning algorithm

The use of these algorithms help the system analyze large amounts of data in a simpler, quicker, and better way than any human can. Machine learning assists in identifying possible risks and finding unknown chances.

Although it requires extra time to train machines suitably, spare time means the learning process becomes more comfortable and accurate. Having learned the meaning of machine learning, let us look at how machine learning is transforming the e-commerce industry.

Why Machine Learning is important to e-commerce

Machine learning offers plenty of benefits to the e-commerce industry. Some of these benefits are listed below.

Search Engine Optimization

Research has shown that over 80% of online shoppers use a search engine when engaging in online shopping. As the number of products in the e-commerce sector increases, search results tend to be more accurate and helpful for users. Machine learning help users search query predictions, sort search suggestions based on the search history, and assign additional focus on image and voice search. The use of the data-driven process can determine what users are searching for online.

Stock Management

Machine learning offers excellent help to e-commerce stores with inventory management of all products listed on their website. Here is a crucial feature of machine learning in e-commerce because the higher the number of products listed, the more complicated it becomes to keep stock. If applied to inventory management, machine learning can help determine if a product needs to be replaced or if it is well-stocked.

Trend Analysis

Machine learning in e-commerce looks at customer behavior and predicts the wave of sales of products. Hence, it can analyze behavior and trends to discern which products will sell more during a particular time.

Dynamic Pricing

Have you noticed that if you add a product to a cart and don’t place an order instantly, the price of the products changes after some days? This process is not regulated manually but through machine learning. The machine keeps track of all products, and its algorithms change product prices for users. Sometimes, the system determines and suggests the best price for certain products, all in a bid to ensure the maximum sale of products.

In conclusion, the impact and influence of Machine Learning in e-commerce is significant, and that’s mostly due to the fact that it assist companies in getting the most from their online stores. Machine learning will help company owners make better decisions, get more sales, and improve their products’ marketing. Machine learning will make e-commerce reach its full potential.

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