How You Can Leverage Machine Learning in Ecommerce
The online retail industry is a big business and it is getting bigger all the time.
The use of AI and machine learning in eCommerce is now bringing even greater benefits for customers and organizations. So how can you best use machine learning to your advantage?
1. Use a Recommender Engine
Large stores like Amazon use product feed recommender engines to provide customers with a list of other items they may like to consider. These tools analyze customer activity and history and generate a lot of additional revenue. If you use Shopify or Magento these features are already available so why not take advantage of them?
2. Personalize User Experience
Machine learning can look at the engagement habits of your user and tailor the experience for them. Around 48% of customers have expressed a preference for this type of personalization. It works alongside a recommender engine to tailor the shopping experience to the exact needs of the customer, encouraging them to stay on the site for longer and spend more.
3. Use Dynamic Price Adjustment
Use machine learning tools that analyze and adjust your prices to maintain their competitive edge. This is used regularly by bit companies like Amazon and Walmart to keep their prices attractive to the customer. The tools assess slow-to-sell items and reduce the price to make them move as well as looking at trends in buying across multiple products using in-depth user data.
4. Predict Supply and Demand
This is a more advanced process of price adjustment which works with the recommender engine to manage product inventory and prevent some of the common supply and demand problems such as running out of highly valued products and being unable to fulfill demand. Seasonal demands such as Christmas can be predicted and optimized and incidental demand met. For example, when Game of Thrones aired there was a spike in interest in the books by G R R Martin, the system would look at this and perhaps provide discounts or other incentives to increase revenue.
5. Use Visual Search
Imagine recognition and machine learning are valuable tools for eCommerce shopping because it makes it so much easier for the customer to find what they wan, cutting the search time and increasing sales.
6. It Can Help Prevent Fraud
In 2018 eCommerce lost billions of dollars as a result of fraud and the problem doesn’t vanish, it evolves, so it is important to be able to adapt to these threats. AI and machine learning provide algorithms that can detect any kind of suspicious activity before it becomes a problem including the abuse of refund policy, promotional codes and account phishing scams.
It feels like Chatbots are everywhere these days — with smartphones and voice-control improvements they are now more sophisticated and users like the ease of use, versatility and streamlined experience they provide. Chatbots save customers a lot of time waiting for customer service teams to answer basic questions by getting an immediate answer from the AI.
AI is here to stay and it seems to provide a perfect partnership with eCommerce businesses wanting to provide seamless customer experience, stay ahead of trends and maintain their security online.
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