Machine Learning in eCommerce Changes Online Shopping

Machine learning has already altered the way we do business, and its subsequent significant impact will be on eCommerce. What will the new era of online shopping look like?


Varun Bhagat

2 years ago | 6 min read

Machine learning has already altered the way we do business, and its subsequent significant impact will be on eCommerce. What will the new era of online shopping look like?

How can machine learning be applied to help your eCommerce website increase revenue? If you're curious about the future of eCommerce, read on to learn more about how machine learning can change the face of online shopping forever!

Artificial Intelligence is quickly gaining traction in various fields and guises. And the eCommerce sector is far from immune. Retail sales are expected to reach about $30 trillion by 2023, according to Statista.


According to Gartner, AI will manage more than 80% of customer interactions in the ecommerce industry by 2021. You might be astonished to learn that 20% of people are willing to buy products from a chatbot.

Artificial intelligence, particularly the machine learning subset of the technology, has a significant impact on eCommerce businesses. Machine learning has numerous uses in the eCommerce industry.

Through this piece of article, I will tell you how Machine Learning in eCommerce changes online shopping. Let’s get started.

Top Business Benefits of Machine Learning in eCommerce

1. Machine Learning has Driven Smart Search Engines


The relevance of machine learning in eCommerce is not limited to recommendation engines when personalizing the shopping experience and linking customers to their favorite items. 

How would customers find the things they want if there wasn't a good search engine? This will appear to be a minor issue until we consider that we are working with a massive merchandise inventory with literally millions of items to choose from.

Traditional systems rely on a match between the keywords used in the search and the terms chosen to describe the items in stock. Combining machine learning algorithms with other AI-related technologies like natural language processing can provide search engines with a better understanding of context.

A machine learning-based engine, for example, can consider a more significant number of synonyms. It may also alter the search process in real-time by prioritizing some results based on each user's purchasing patterns and preferences.

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2. Contextual Shopping

Contextual shopping solutions are another notable example of machine learning in eCommerce, especially applied to guide users towards products while providing them with a more engaging shopping experience.

These applications, powered by machine learning and computer vision technology, may recognize and highlight specific products that appear in web videos, allowing consumers to purchase them without leaving the multimedia content.

For the video eCommerce platform provider AiBUY, Itransition provided machine learning consulting and programming services to help them establish such a solution.

3. Customer Segmentation, Service Personalization, and Targeted Campaigning

When a consumer enters a brick-and-mortar store, a salesperson would typically approach them and inquire about their needs.

They also ask questions to learn more about the customer's tastes and interests. In addition, the salesperson pays attention to the customer's behavior, body language, and other nonverbal indicators that can assist them in better serving the customer.

When a consumer has a doubt, a query, or a concern, the salesman promptly addresses it and pushes the customer to buy. In another way, the salesman divides the consumer into segments and provides focused and individualized service.

There is no option for this luxury on eCommerce websites. Customers typically shop online for the sake of convenience rather than for an enjoyable experience. They almost always have a specific item in mind. They might buy it if they can discover it readily.

As a result, unlike physical stores, online stores have a limited ability to create an optimum consumer experience that will enhance sales and profitability.

Ecommerce merchants must collect massive amounts of data and make sense of it to give an experience similar to that of a customer in-store. This is where Machine Learning comes to the rescue. It can assist eCommerce merchants in running focused campaigns that convert potential customers into actual customers.

4. Fraud Detection & Protection

The majority of purchasers, particularly first-time buyers, believe that ecommerce enterprises are not secure enough. Fraudulent activities are a threat to eCommerce businesses.

Ecommerce merchants must use extreme caution. It is not uncommon for businesses, particularly online ones, to close their doors due to a poor reputation.

The amount of money lost by online retailers as a result of fraud is continually rising. As a result, fraud detection and prevention are critical operations for all online retailers. Machine learning algorithms for e-commerce can help to optimize and streamline these operations.

It can quickly analyze reams of tedious, repetitive data and detect fraudulent activity early on by proactively recognizing any irregularities.

5. Product Recommendations

Machine learning-based product recommendations are also intelligent. Visitors to an eCommerce site can be analyzed using algorithms. They'll recognize the products that a visitor looks at or buys and the content they interact with.

When a person returns, they are offered items comparable to those in which they previously expressed interest. That's why, when you go to Amazon, you'll find a lot of goods that are similar to what you've recently bought or looked at.

6. Optimized Pricing

The majority of online customers are price-conscious. Customers may feel more at ease when visiting the store and seeing a product before purchasing it if it costs the same as it does online.

It's also pretty uncommon for customers to compare product prices across several ecommerce sites to obtain the most excellent offer.

Dynamic pricing has proven to be a massive success for eCommerce businesses. Machine learning can alter prices by taking multiple aspects into account at the same time.

The competitor price, product demand, day of the week, time of day, consumer type, and so on are all elements to consider.

7. Improve In-house Operational Efficiencies

Not all of the advantages of eCommerce machine learning are related to customer-facing operations. Algorithms can also provide real-time information to help you improve the efficiency of your other activities.

As an example, consider how you manage your inventory levels and inventory accounting. Many businesses are torn between the FIFO vs. LIFO debate. Analyzing client data is the most robust approach to determine which method is ideal for you.

Machine learning speeds up and improves the accuracy of such an analysis. Computer software can calculate ecommerce sales, warehousing expenses, tax consequences, and other factors. It can also assist in forecasting future demand. As a result, you have all the information you require to implement the most effective processes imaginable.

Use Cases for Machine Learning in eCommerce


  • Site search

Site searches for ecommerce sites frequently fall short. It might not be easy to find the things you seek unless you know what to type. In the era of machine learning, there's no excuse for it. When used appropriately, intelligent algorithms make delivering smart searches a breeze.

Many visitors to your online store will already know what they're looking for. They may not be aware of the name of a specific product. Or even which item would be appropriate for them.

As a result, your site search must be sophisticated enough to give the appropriate solution. That is true regardless of what is typed into the search bar.

  • Personalization

Customers today do not want to be viewed as just other consumers. They prefer a high level of personalization in their customer service. It's customization like this that keeps a consumer coming back to your business. If you don't have it, they'll go to a competitor who does.

The only way to achieve high-level personalization online is through AI, primarily machine learning. Algorithms examine client data and behavior to personalize the user experience for each visitor to the site.

  • Churn prediction

Customer churn is a hot topic in the B2B world. It refers to the rate at which customers depart a brand to patronize another. It's also worth exploring as an ecommerce business.

It's easier to sell to an existing consumer. That is why online retailers value retention marketing so highly. But what if you could improve that aspect of your marketing approach by anticipating which clients are most likely to churn? That is the opportunity that machine learning provides.

Churn prediction is the process of identifying patterns in existing and previous customers' data. What behaviors do customers exhibit when they are about to churn? These are the kinds of discoveries that machine learning algorithms can make.

  • Managing supply and demand

Being able to anticipate changing consumer needs puts you ahead of the competition. Machine learning assists you in making accurate, real-time forecasts.

In the ecommerce industry, managing your supply chain is critical to your success. How to go ahead is to balance customer demand with expenses like landed costs and transportation. You can quickly crunch all the actual numbers using machine learning.

Quantitative forecasting can be done with the help of an AI-powered algorithm. Making projections based on cold, hard data is what this entails. It's the most efficient technique to ensure that your forecasts are as accurate as possible.

Summing Up

Retailers must feed unique data into algorithms and train them to employ AI and ML efficiently. In a nutshell, treat e-commerce machine learning like web advertising for your online shopping platform.

It will turn out to be a fantastic tool if properly executed. It may become irritating, similar to those flashy importunate ads on social networks, if implemented incorrectly or, even worse, over-deployed.

You should get in touch with leading Machine learning companies in India to implement Machine learning into your online shopping platform. They are capable of providing superior machine learning solutions at an affordable price.

Good luck!


Created by

Varun Bhagat







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