With the widespread use of the internet, E-commerce is ever so booming. People are opting for a quick and easy way of buying products online. Traditional retail stores are in gradual decline. E-commerce is simply emerging as the better choice for saving time and money while also not compromising on quality.
Machine learning has a major say in bringing E-commerce to its current place. E-commerce was not always attributed as being time-saver and dependent. It was machine learning and its advanced computational methods which paved the way for progress. Machine learning is a technology which involves the development of techniques and algorithms for dealing with problems at hand.
The techniques and algorithms of machine learning keep on working and improving by themselves without outside interference. This not only saves times but also minimizes the errors that occur due to human interference.
Machine learning is being used in various websites of E-commerce:
The search engine of any E-commerce site is its main central part. It is the pathway of communication between the organization and the buyer. It is essential that the search engine understands what the buyer is asking for.
In the past, the search engines were only designed for searching for a product name, serial number, model, and description etc. But with the help of machine learning, the search engines have greatly improved and focused not only on the word but also the previous data associated with that word.
The firm relationship with customers is essential for every kind of businesses. Customer feedback plays a vital role in maintaining that relationship. However, the hiring of a large number of people for this job is not just heavy on finances but is also inefficient. Chatbots pose a good solution to this problem. They analyze the words of customers and act accordingly. They deal with most of the problems that arise based upon their initial information and learning from previous encounters. A human interference can also be asked by them in case of any serious issue.
Machine learning also comes into play for marketing in the E-commerce. Whenever a person is buying something, he is also given a list of other products that may be suitable for him. Such as if a person is buying jeans then a matching leather belt would be shown by machine learning so that there will be ease of access for the consumer.
Machine learning is the use of learning algorithms and techniques, however, data is also analyzed to make learning even better. All sort of data from previous encounters to current trends is gathered and is processed to make learning better. So if a person buys gifts for his loved ones at a specific time of year, he will begin to see more recommendations regarding gifts in future at that specific time. It will allow the consumers to make their purchases with much more ease.
These and many other machine learning outcomes are pretty much prevalent in E-commerce nowadays. However, machine learning is changing continuously. There are new things developed from time to time in its domain.
Some of the new and future-oriented machine learning applications in E-commerce:
As mentioned previously, the search process is a key process of any E-commerce organization. To make the search process even better, there has been the adoption of visual search in some organizations. It involves the use of advanced machine learning processes for image recognition. It allows customers to search for a product online through its picture. It is especially helpful in buying unbranded products online.
With the introduction of advanced voice recognition models like Siri and Google assistant, it has become increasingly necessary to integrate voice search in E-commerce. It has also been made possible using machine learning. Machine learning algorithms recognize the speech, select keywords from it and search for the desired product.
Every good thing has its pros but it is never without cons. Similar is the case of E-commerce, it is facing a major threat of frauds. With millions of transactions going on, there are hundreds to few thousands of fraudulent transactions too. It is not possible to individually check each and every transaction as was done in past due to the sheer amount of them. This problem is, however, also solved by machine learning as there are computational methods developed which are continuously analyzing the transactions going on and differentiating the suspected transactions.
These suspected transactions can then be reviewed by security officers who can have the final say in the matter about whether it is a fraud or a false positive. Depending upon the result, the future transactions similar to that, face the same fate. It, henceforth, greatly lowers the burden of work from security department.
Pricing and Profit Optimization
Machine learning intends to greatly automate the process of pricing of items. The price of items plays a big role in E-commerce as there is rarely any other thing to attract a customer. Machine learning will automate this process of pricing and will optimize the profit depending upon the market behavior.
Due to the sheer vastness of data being collected, it is only practical to involve machine learning algorithms in it. The algorithms take account of changing the behavior of markets, customer feedback, customer needs and the overall trend to make a suitable decision for better revenue.
Use of Robots
With the help of Machine learning, Robots are also being used in warehouses of E-commerce. Usually, the warehouses of E-commerce organizations are very big and are difficult to maintain. Robots offer a good way of managing them. These robots scan for RFID tags on items that are ordered and send them for delivery.
From all this discussion above, we can conclude that E-commerce has machine learning sort of integrated into it. Everything related to E-commerce is connected to machine learning in one way or another. However, it does not end here. Both E-commerce and machine learning are considered as the prominent parts of coming future. Considering this, it would be fair to say that E-commerce with the help of machine learning would be a major part of world economies in the near future.