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SOMYA RAWAT
SOMYA RAWAT

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How Machine Learning is used in E-Commerce ?

Smart Search :

Many visitors to your online store will have an idea of what they need what they might not know is the name of specific product or even which item would meet their needs.

Give a large enough dataset, you could determine which results are better for people best match their needs on their previous behaviour.

By analyzing the data and figuring out what items go together, you can also recommend similar products, and even cross-sell items that are frequently bought together by your users.

Recommendations :

Personalization and recommendation engine is the hottest trend in the global E-Commerce space.

With the use of machine learning algorithms for E-Commerce and the processing of huge amounts of data, you can thoroughly analyze the online activity of hundreds of millions of users.

Companies like Netflix, YouTube, Amazon, etc. use recommendation engines by considering experience of other customers and recommend products that are bought by people who live near the customer, age, gender and so on.

Marketing Campaigns :

Acquiring new customers is much most cost-intensive than retaining existing customers.

A machine learning algorithm can determine which shoppers are the most likely to abandon your site- based on things behaviour such as: returning to your store less frequently, smaller purchases, etc.

Based on the result we can target the customers through incentives, recommendation, emails etc.

Managing Supply and Demand :

If you run a successful online store, you have to monitor your stocks, reorder items, predict trends in demand, coordinate contractors, deal with manufacturers, suppliers, mailing services, and manage your revenues accordingly.

By monitoring all your inventory, and even predicting future trends in supply, demand and even cash flow, you can be sure that with Al, you won't be the airline that overbooks flights or flies empty.

You will be the airline that plans their next year schedule with absolute confidence.

Improved Customer Service :

Chatbots are amongst the most accessible examples of machine learning in ecommerce. These bots help with common queries and direct visitors to specific products.

An Al-enabled bot can use the interactions it has to learn and tweak its future replies. The more a chatbot gets used, then, the more human it seems, and the better the information it provides.

Price Optimization :

Price is one of the major drivers for at least 47% of customers according to Big Commerce survey.

Even the big giants like Amazon, Flipkart, Uber, Airline companies, Airbnb do price optimization.

We can also include other factors like supply and demand, which promotions are running, what time of the day or year it is, shipping location and so on.

Image Processing and Recognition :

Ideally, it enables a customer to just upload a photo they snapped of a given product at home or at the store.

The system then processes it on the store's servers, and instantly displays a response with availability, current price, shipping info so the shopper knows where to buy it.

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