Discussion – 


Discussion – 


Changing the eCommerce Game: 8 Ways AI and ML are Disrupting Online Shopping

Ecommerce has always been a game-changer. It has entered every business sector, making it easier for people to order products and services with just one click! Backed by technological developments, the eCommerce game became so intense that brick-and-mortar stores have no other option other than giving in.

Mobile applications and digital wallets have made everything possible. Whether you want new paint for your house or groceries to fill your refrigerator, you can get everything online. Physical retailers, too, have joined hands to help their customers shop and pay conveniently. Plus, it keeps the visitors delighted!

The constant evolution of online mediums has been fascinating. Now, by imbibing machine learning (ML) and artificial intelligence (AI), things will be super fun and exciting.

Believe it or not, this is going to bring a massive shift in the eCommerce industry. According to Servion Global Solutions’, by 2025, AI will do almost 95% of customer interactions.

Machine learning experts have already created big waves in the market. Giants like Alibaba, Amazon, Rakuten, Shopify, and more have initiated ML, making massive noise. Also, in the next five years, AI-enabled revenues are expected to reach $36.8 billion globally.

How do AI and ML drive success in eCommerce?


AI and ML are proving to be boons for online businesses. Do you want to know how? Let’s find out!

Smarter product recommendations

When searching for a product online, you come across multiple options that distract and confuse you. Sometimes, people end up buying an item that they do not even need after a month.

When AI comes into the scene, it helps suggest products you really need in day-to-day life and even in the future. Smart product recommendations boost up sales automatically. The retailers significantly get benefitted from this because their products reach targeted audiences.

Amazon has done a great job in this. It uses collaborative filtering and next-in-sequence models- a fantastic combo to predict which products the customers may need next. Alibaba, too, uses AI to give better recommendations to customers depending on their browsing history and past orders.

AI lets you visual search


Visual search is yet another fascinating aspect of artificial intelligence. What happens during this? Visual search means you get to use images, giving you more natural and better search results.

With visual search, you do not have to take a meticulous approach to describe and find a product. Instead, all you need to do is take a picture of it, and the image searching technology will do the rest. To stay ahead of the game, Amazon uses StyleSnap to mimic customer behaviour.

Improved customer service

Often it is seen that buyers cannot make a choice and need a little help. AI can be beneficial in this. They appear in chatbots and chat assistants to help you decide on your purchase. These virtual assistants do a great job in aiding customers to find the correct item for them. 

The North Face uses Watson, IBM’s artificial intelligence, enabling shoppers to search for their jackets. Amazon, too, has joined the race by welcoming Alexa, a voice-enabled assistant. Google Duplex tool is also helping people in creating grocery lists and placing an order.


Get discounts in real-time

Sometimes retailers follow the dynamic-pricing strategy to change the products’ cost as per the demand and supply on the market. Basically, they use customer data and competitive pricing to evaluate when the discount should be given and what should the minimum discount be. As a result, you get to enjoy real-time, custom-made discounts.

Amazon has been genuinely leading in this case because it has tasted massive success after applying a dynamic pricing strategy. Interestingly, the price changes every ten minutes, leading to a tremendous profit boost.

Predicts behaviour modelling

Do you know AI can predict the future? It is one of the fascinating applications of AI. It can access a pool of sales data, social media matrices, and market research, which aids them in generating psychographic profiles for customers in detail and predicting their behaviours in the future.

Once the brands get to know customers’ behaviours, they can focus on building marketing strategies to increase their sales and profits. For example, predictive behaviours are used in detecting whether a customer will make a purchase or return a product, the demand of specific items, and customers’ lifetime value.

Managing inventory and warehouse

Efficient inventory management involves keeping the stock fulfilled so that it can meet the market demands. But, on the other hand, resource consumption should also be checked simultaneously.

Alibaba partners with Cainiao; a logistic company that uses AI to plan out the shortest delivery routes. It claims that using smart logistics has reduced their travelling and transporting use.

Categorising fake reviews

It is a fact that online shoppers check for reviews and recommendations before adding an item to their cart. Unfortunately, the biggest issue retailers face is fake reviews, which competitive brands often post to mar a brand’s image.

Henceforth, fake reviews are a big concern as they threaten a brand’s reputation and visibility. Nowadays, many companies are imbibing AI to filter out such negative comments and help customers with genuine feedback. Currently, eBay Korea uses this.

Solve complicated eCommerce issues

If you apply AI correctly, it can solve tons of problems. Unlike the western countries, in India, postal address formats are not systematic. People use landmarks and local names in the address section, which can cause severe logistic issues like lack of customer satisfaction, misdelivered orders, and more.

If you take Flipkart, an Indian eCommerce company, it uses ML and AI to handle this delicate issue. Developers and Data Scientists have developed an address classification system, giving the highest accuracy and ensuring timely deliveries.

Final word- AI and ML are the ultimate game changers!

When you look at the above examples, you can see that eCommerce companies are making significant shifts by adopting machine learning and artificial intelligence. However, there is a lot more you can do using these two applications.

Besides the digital giants like Alibaba and Amazon, many online platforms are getting in on this game and using AI and ML for better customer service. In short, eCommerce’s growth is expanding and is not going to stop soon. 

When it is coupled with ML and AI, the service will be more competent and satisfactory, boosting sales.




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