Machine Learning and AI has become more evident into our daily lives, where the eCommerce sector is not an exception. You can clearly see how much value they bring to the eCommerce businesses today.
Isn’t it amazing that they can do what we thought only we humans could do? AI, particularly the machine learning subset of technology, has a profound impact on eCommerce businesses.
Until now, AI and machine learning have been used exclusively by global companies because their pricing is not so accessible. However, according to a recent web development stat, AI will handle over 80% of all customer interactions by the end of 2021.
There are multiple applications of machine learning and AI within the eCommerce industry. Let’s talk about how machine learning and artificial intelligence (AI) is revolutionizing the eCommerce industry.
Here we go.
Business Benefits of Machine Learning in eCommerce
Along with other technologies such as augmented reality, machine learning offers many business benefits, especially online retailers. The ability of algorithms to make sense of a vast wrap of data is invaluable.
There are now machine learning applications for almost every field of e-commerce operations. From inventory management to customer experience, e-commerce machine learning delivers true sense.
Let’s get an in-depth insight into how your business can benefit from machine learning.
#1 Managing Demand and Supply
All businesses resort to forecasting to match demand with supply. To forecast well, e-commerce retailers must base their decisions primarily on data over other things.
To ensure data-backed decisions, businesses should process as much data as possible. It is also necessary to ensure that the data is accurate and that it is being processed correctly.
Machine learning can process entire volumes of data accurately and more quickly. Besides, it can also study data to offer as many insights as possible.
This not only enables forecasting but also helps online businesses improve their products and services.
#2 Increase in Conversion Rates
It is important for any eCommerce website to turn the browser into online shoppers. That’s why you do not doubt the conversion rate of your site. One of the reasons machine learning is so helpful for eCommerce is that it can help boost that rate in many ways.
Machine learning algorithms can give better search results. Through natural language processing, they can understand what is typed in the search bar.
They then use what they learn from previous discoveries to show what the explorer really wants to find, even if they do not write a specific product name or an accurate description.
Product recommendations powered by machine learning are even more brilliant. The algorithm can analyze the behavior of visitors to an ecommerce site. They will recognize the products that the visitor searches or buys and the content with which they interact.
When a person returns, they are presented with similar items for which they had previously shown an interest. When you visit an eCommerce site, you will see things related to those you have recently purchased or seen.
#3 Smart AI-Powered Virtual Assistants
Shoppers like personalized services. In fact, they prefer them so much that they are willing to wait longer for a personal product or share some personal information in exchange for a personalized offer.
Now, that is where store owners can make use of AI-powered virtual assistants for a better shopping experience.
Such assistants “learn” about the customer’s previous purchase and, based on them, formulate some behavior patterns that are most likely to occur in the future. Also, these assistants usually ask shoppers a few questions, and the answers will eventually lead to a successful purchase.
So what makes AI virtual assistants so valuable? They basically play the role of sales assistant in a physical store but do it a lot faster and more accurately due to AI learning capabilities.
#4 More Informed Decisions
Machine learning is an excellent tool for making better decisions. You may need to decide if dropshipping is right for you. You may be wondering whether the consumer is interested in the new product line. Most of the ecommerce website development companies are using machine learning to make a robust business website for successful entrepreneurs.
Whatever option you encounter, machine learning can help.
Machine learning helps in this area by allowing all your decisions to be supported by data. Algorithms or programs process and rapidly understand higher volumes of information.
#5 Take a load off with better inventory management
If you have got overstock, you are losing cash. If you have not got understock, then you are missing out on the sale. This is what all merchants in e-commerce need to see at one point or another.
Inventory management is a real pain and can also be the downfall of eCommerce stores. 46% of US companies admit that they do not track their inventories, while more than $ 1 trillion of capital is tied up in inventory.
It doesn’t matter whether you’ve got overstock or an understock; inventory management can handle it with ease. When done manually, making accurate predictions about sales is difficult-to-impossible. As a result, entrepreneurs end up with a cash flow problem.
Once AI is in motion, forecasts on future demands become much more accurate. This allows you to control your supply chain with ease and ensures that you know more about your customers and their behavior. And this results in reducing shrinkage, and you also get to save time and cash.
Final Take Away
Machine Learning and Artificial Intelligence will affect the future of eCommerce, but it is affecting the present as well. It is here now, and the time for merchants to work with it as soon as possible.
Fortunately, it is not as complicated as it first seems. When you take the time to find out how it works, it is a matter of implementing it to a vast improvement in the customer experience.
If you have an eCommerce business and aren’t on board with machine learning, you are left behind. So, if you want to integrate machine learning and AI into your e-store, hire AI developers in India. They can provide advanced machine learning solutions at a reasonable cost.