“Many have started leveraging machine learning technology to give their business an exponential hike. There are some amazing benefits of machine learning in eCommerce. Are you pondering how? Find out in this article”.“Many have started leveraging machine learning technology to give their business an exponential hike. There are some amazing benefits of machine learning in eCommerce. Are you pondering how? Find out in this article”.
Technology has fueled every aspect of our lives, and eCommerce is not an exception. But still, online retailers are facing costly returns, customer churn, or margin decreases. They try their best and strategies accordingly to grow more.
Over the last few decades, eCommerce industries have come so far with some fantastic advancements. And now, machine learning has joined the sector to provide more profitable results to the retailers.
Don’t you find the adoption of machine learning enticing? No wonder it’s very much beneficial for this sector today. This technology has a lot to offer to your e-commerce business.
This blog highlights the benefits of machine learning for e-commerce industries. Also, you will see what has changed in the past few years in this industry.
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Ecommerce Growth in the last five years
According to web development stats, retail e-commerce sales worldwide reached 3.53 trillion US dollars in 2019, and e-retail revenues can reach 6.54 trillion US dollars in 2022.
By 2021, mobile ecommerce sales can account for 54% of total ecommerce sales.
After knowing these breakthrough numerical figures of eCommerce industries, we can easily see a prosperous future ahead in e-commerce industries. And, machine learning can help you in succeeding in your ecommerce business with its excellent benefits. Let’s peek into these perks once.
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Benefits of Machine Learning for eCommerce Industries:
#1. Improve Search Results
The improved search results can provide a massive pay-off to the retailers. With machine learning, customers benefit from the enhanced ecommerce search results every time they shop on the website, taking into account their preferences and past shopping history.
Instead of using traditional search methods like matching keywords, machine learning can produce a search ranking based on customers' choice.
It is essential for giants such as eBay. With over 800 million items listed, the retailers are fully utilising artificial intelligence and data to predict and display the customers' most relevant search results.
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#2. Enhance Customer Experience
Machine learning technology facilitates e commerce websites to provide a more personalised experience to the customers. The days have gone and customers used to communicate with their favourite brands in a personalised way. Now, they are expecting personalisation.
A study by Janrain revealed that 73% of customers get fed up when they are being presented with unnecessary content.
Artificial intelligence and machine learning allow retailers to make every conversation with their customers personalise, thus presenting them with a better experience.
By adopting machine learning in the e-commerce business, retailers can eliminate customer service issues even before they occur. As a result, cart abandonment rates get lower, and sales get increased. Unlike humans, customer service bots provide unbiased solutions around the clock.
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#3. Eliminate Fraud
Every e-commerce retail has a nightmare of chargebacks. Many buyers think that shopping with eCommerce sites is not secure enough.
These stores are prone to risk and fraudulent activities. The retailers should be cautious. It's common among businesses, especially online ones, to shut the store due to a bad reputation in the market.
But now, machine learning can eliminate the scope of fraudulent activities significantly. It can process reams of detailed, repetitive data speedily plus can nip fraudulent activities in the bud, by proactively detecting freaks. It’s better if you connect with a machine learning company in India to get it sorted out for you.
#4. Optimised Prices
Online customers usually are very price-sensitive. If a product costs the same as a brick and mortar store, they are likely to visit the store. They feel more comfortable in assessing it first hand rather than purchasing it online.
It's common for the customer to compare the product price across the different platforms to get the best deal. Many sites have started implementing dynamic pricing for a better sale.
With machine learning, you can change plus readjust prices by taking into account different factors all at once. These factors include product demand, competitor pricing, day of the week, time of the day, customer type and more.
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#5. E-commerce Targeting
When you sell products from a brick-and-mortar store, you have to communicate with customers to provide what they want, but it's different in the online world. Here, you will get benefitted with the extensive customer data.
As a result, customer segmentation becomes essential for e-commerce, as it allows businesses to adapt their communication procedures for every customer. And machine learning can help you understand your customer's requirements better and create a personalised shopping experience.
Machine learning has made a strong place in the eCommerce industries. As I have shared some excellent e-commerce benefits of machine learning, you can see how this advanced technology improves your business efficiency.
Today more and more retailers are embracing this technology and driving successful results. Machine learning can become a huge asset for businesses planning to automate tedious, labour-intensive and high-priced manual processes. It can empower retailers with essential insights about their buyers.
For better guidance, you can also hire eCommerce developers in India. They will help you out and implement this technology in the right way.