Brief Overview Of Machine Learning For eCommerce

eCommerce has been an ever-growing industry, since the rise in online shopping. Today, eCommerce sites are now looking into machine learning to improve their operations. One can thank artificial intelligence (AI) for making that possible, since machine learning needs copious amounts of data to understand the average consumer in all kinds of eCommerce ventures. 

In this brief overview, we’ll show you the different ways that machine learning can help you in your eCommerce ventures:

More Relevant Marketing Campaigns

“Marketers are always looking for better ways to market,” says Jessica Hamm, a business blogger at Write my X and 1 Day 2 write. “With machine learning, marketers can tap into customer data, and see what customers are browsing, what they’re leaving in their shopping carts, and what product recommendations that they’re receiving based on their browsing history. The algorithms can let marketers know how to create better campaigns, based on customer data.”

Smarter Marketing Decisions

Marketers need to make the most appropriate decisions when planning and executing marketing schemes. That’s where machine learning comes in! 

Machine learning improves decision-making by looking at what consumers are interested in on your eCommerce site. In this way, you can redirect your marketing endeavors towards the thing(s) that your customers can’t get enough of. Also, there are various ecommerce tools which can help in machine learning.

Improved In-House Operations

eCommerce sites are more than just online businesses. In fact, there are almost always in-person staff that are working to fulfill and deliver orders made online. 

In that case, algorithms combed through by machine learning can deliver real-time insights on in-house operations. In this way, in-house staff can execute customer-facing processes seamlessly. In short, machine learning can help make the following easier for in-house staff:

  • Figure out warehousing costs
  • Crunch numbers when it comes to taxes
  • Tally up eCommerce sales, etc.

Speaking of tallying up sales…

More Conversions

It’s easy for users to visit an eCommerce site. But how many of those users actually follow up on their purchases? According to Shopify, Baymard Institute points out a shocking 69.57% of online shopping carts being abandoned before there’s ever a purchase made. There’s no purchase, there’s also no conversion.

The good news is, machine learning helps you bring more and more shoppers to your eCommerce site. How? By helping you spice up your search engine optimization (SEO) and product recommendations. In other words, what are shoppers looking for online? And do you have what they’re looking for?

This is made possible when machine learning helps you search for the relevant keywords and phrases that users are frequently typing in the search engine bars. Type in something like “computers,” and you’ll get results on different brands of computers; and, you’ll most likely get sites like Amazon or Best Buy that happen to sell computers. That’s machine learning at work, because it’s all about SEO and product recommendations. As a result, cart abandonment will happen less often when people find what they’re looking for online.

Better Customer Support

“Customers deserve to be understood by the eCommerce shops that they do business with,” says Gemini Briggs, a technical writer at Origin Writings and Brit Student. “That’s why it’s imperative that eCommerce shops be up-to-date on their customer support services. Machine learning allows you to look at customer data, so that you can have future references on the types of things that customers tend to query about, such as refunds, returns, checkout assistance, product information, and so on. In fact, the use of chatbots is a good example of machine learning at work, since these bots tap into the algorithms to learn about common customer inquiries, and then answer said inquiries based on the data.”

Better Fraud Protection

Finally, nobody wants to fall victim to online fraud, not even eCommerce sites. In fact, chargebacks can happen at any time. For eCommerce sites, chargebacks are either legitimate or fraudulent. Unfortunately, too often are the chargebacks fraudulent, since 71% of chargebacks in 2016 were due to friendly/chargeback fraud – That’s a revenue loss of $4.8 billion.

But with machine learning, eCommerce sites can monitor fraudulent activities more closely by processing repetitive data at warp speed, and by detecting any anomalies that happen repeatedly.

Conclusion

As you can see, implementing machine learning in your eCommerce endeavors can do wonders for your online business. This brief overview is living proof that machine learning can help you be smarter in your marketing, sales, and conversions.