How Can Machine Learning Help Ecommerce
BY Nisha.Oommen
1 year ago
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Developments in machine learning has a great influence on the e-commerce sector. Online purchase is steadily on the rise, allowing companies to capture all kinds of data on the customer experience, including

  • what are customers interested in
  • geographical location of visitors
  • what time it the sales most or least
  • when does traffic peak on the site
  • for how long they are on any given product page
  • what is the preference of the items
  • what are the items sold most on any particular given day of the week
  • what other products are they looking at
  • what do they buy
  • what are the triggers of the decision from the last window browsed before the purchase
  • how are they affected by rates, reviews and coupon
  • what is the optimal discount rate that triggers the purchase

Data received thus helps to make informed decisions based on the knowledge acquired through analysis. It makes it easier to collect and process the data, helps to see factors that went previously unforeseen.

What is machine learning?

Machine learning is defined as the science of getting computers to act without being explicitly programmed1. Based on pattern recognition and computational learning theories in artificial intelligence, machine learning uses the study and construction of algorithms to learn from and make predictions on data2.

Data driven predictions or decisions can be made using algorithms and building the right model for data inputs. Machine learning is used for computing from a variety of data sets where designing and programming with least error and highest accuracy is not possible.

Applications of machine learning in the e-commerce industry

Cross selling/ Recommender Systems

'You may also like ' Section: Using a customer's past browsing and purchase history, what will they likely want to purchase in the future? This refers to making predictions based on the previously available data i.e what kind of product can I recommend for you?

Query expansion

While the customer types in on search, this feature allows autocompletion suggestions using the most likely search terms. The algorithms takes into account frequencies of specific search terms as well as the particular customer profile (e.g. previous product views, age range, previous search terms).

Personalized discount

Using prediction, you can try and figure out the optimal discount at which will a customer succumb. Minimize the number and rate of discount you give while maximizing the number of conversions you can get.

Sentiment and trend analysis

Evaluate the public perception of a product based on sources like social media.

Churn Prediction

Prediction can be made on when customers’ interest for a particular product or feature will cease to be profitable allowing for countermeasures like cross selling. Deciphering the characteristics of churners allows a company to reach out to churners, update the product or even discontinue a particular product line.

Inbound and outbound logistics optimization

How many of what thing do you need and where will we need them?

Fraud detection

Match the data received against different data points and extract fraud scenarios. One instance can be matching the shipping address against the address on the credit card: it can raise a red flag if it does not match.

Product classification

Products can be sorted automatically to speed up inventory management and improve customer navigation.

Wallet share estimation

Information emerging from the data analysis can give the proportion of a customer's usual spending in a category allowing the business to identify upsell and cross-sell opportunities.

Dynamic pricing

Automatically adapt price as a function of supply and demand. Uber is a classic example of usage of dynamic pricing. The surcharge applies when demand surpasses supply like during rush hour. It is a major way to optimize revenue.

Supply and demand analysis and forecast/ Inventory Forecast

Make production and distribution more efficient by predicting market demands. Demand forecasting is all about understanding consumer demand for goods or services. Knowing how much stock to keep means avoiding unnecessary spending on overstocking or surplus on the one hand and avoiding the other extreme i.e sales lost due to lack of inventory or supply of goods. This enables lean inventory and prevents out of stock situations.

Chatbots and automatic answering of phone calls

This feature in e-commerce has been developed through speech recognition/synthesis and natural language processing via deep learning.

Target market

Understanding the target helps you determine exactly what your products or services will be, and what kind of customer service tactics work best.

Merchandizing and Inventory Management

When to start stocking and how many. This is particularly applicable in the case of perishable goods.

Product launch

From the data, prediction of customers most likely to buy can be targeted for product launches.

Channel optimization

Optimal channels can be targeted based on behavioral characteristics.

Discount targeting

What is the probability of inducing the desired behavior with a discount?

Market Basket Analysis

Market basket analysis helps in determining what products customers purchase together. For instance, market basket analysis might tell a retailer that customers often purchase bacon and egg together or shampoo and conditioner together, or beachwear and suntan lotion so putting both items on promotion at the same time would not create a significant increase in revenue, while a promotion involving just one of the items would likely drive sales of the other.

The right algorithms in machine learning help in the above processes.

Major Challenges of Machine Learning are

  • Acquisition of relevant data
  • Interpretation of data analysis results
  • Building the most accurate Machine Learning model without too much bias

With the advances in machine learning, more and more applications are emerging in the fields of e-commerce and healthcare.

1. Machine Learning: Stanford
2. Machine Learning: Wikipedia
3. Influencing Customer Through Infinite Personalization
4. Top 5 Machine Learning Applications for E-commerce
5. Data Science Use Cases in
6. What are the applications of machine learning in the e-commerce industry?



on 30th November 2015 / by nayanathara
Staying ahead of your competitors in today's fast-moving markets is not an easy job. Your competitors might be continuously releasing a host of better products and adopting the latest technologies and aggressive pricing strategies. In this scenario, your success is determined by pricing intelligence – and this has to be accurate and completely up-to-date. Online shopping has created a strong sense of consumer empowerment by giving the consumers a range of choices and making it easier to for them to purchase things. Moreover, it has also triggered the trend of comparing the product prices and making the final decision to buy the product on minimal margins. Compare prices, double your e-commerce sales Price comparison is an innovative concept that has dramatically transformed the E-commerce industry. Price comparison tools or price crawlers or shopping robots, employ crawling techniques or web data extraction to automatically scan web pages and retrieve the prices of a product. In this way, a price comparison tool helps to fetch a significant amount of product and pricing data and uses Data intelligence to display the data feeds. So what you ultimately get are real-time price updates, helping you stay on top of your game. Comparison shopping engines: What do they exactly do? Comparison shopping engines (CSE's) such as, and PriceGrabber give ecommerce merchants the opportunity to attract new customers, increase sales, and go head-to-head against the competition. Comparison shopping engines gather all kinds of information about products from the participating retailers including the pricing, which is displayed on the results page when a shopper enters his/her search query. This enables the shoppers to compare the price offered by each retailer and the shipping options and ultimately select the retailer that offers the best overall value. Benefits for businesses: Gives your business a competitive edge: Pricing is always the crucial factor in making a buying decision. By using price comparison tools, business owners can maintain a check on prices offered by their competitors. You can even create a promotional strategy such as providing discounts or revalue price points to attract a lot more consumers. Pricing Intelligence: Price Intelligence offers you greater visibility into the pricing of your competitors as well as the array of products that they offer. It also helps you make significant pricing decisions and building pricing strategies that are lucrative for your business. Analysis of current market trends: With comparison tools, the current market trends can be analyzed. The positives as well as the negatives can be accurately assessed and improvements can be made accordingly. Effectively track consumer buying patterns: Price comparison tools can be used to effectively track the buying patterns of consumers. This enables business owners to find out the impact on the existing consumers, how to draw new ones and what is essentially needed to enhance the traffic for their products and categories. Improved customer services: To stand out in the market, you need to have a better customer service. Using product and pricing data, customer service can be invariably improved. Benefits for customers: Whenever you’re buying any product, particularly expensive ones, it’s always best to do a comprehensive research and comparison of prices so that you get the right products at the right price. Price comparison tools give consumers a tremendous amount of bargaining power. Besides, it enables shoppers to get the best deals and save a significant amount of money. Here's something worth thinking about... Today, price comparison sites are mushrooming in every nook and corner of the world wide web. So, if you are on the lookout for cheaper products and services, and want to shop pretty quickly, then price comparison tools offer plenty of choices for you. But this is just one side of the coin. Is it a good idea to display competitor prices on your e-commerce site? Does it involve serious ethical issues? Think before you take the big leap! Be part of the discussion and share your valuable comments on the same. References: How to Save Money With Price Comparison Tools Five Best Price tracking tools The 11 Best Shopping Apps to Compare Prices Costly comparison How do comparison shopping sites make a living? An update Ecommerce Price crawler Price comparison tools Leave a reply Your email address will not be published. Required fields are marker *

on 02nd December 2015 / by Moses Raymond
The online e-commerce and retail websites are growing at a super fast rate and are evolving into better sites constantly. As consumers expect to get newer and better experiences every time they shop, the technology driving these sites too needs to be growing and evolving simultaneously too. This will ensure that the modern shopper is given a whole new shopping experience with every trip to the online store. In its latest version, Drupal 8 has made adequate changes and additions to its platform to elevate the engagement level with the consumer. Drupal ecommerce sites have the innate capability of merging commerce and content, ensuring that the customer goes through a wholesome content-driven experience. Being an open source system, Drupal Commerce is extremely customizable and a dedicated e-commerce framework which allows the user to tailor the website design in terms of the structure and design. Why Drupal Commerce? Stores that have a huge inventory of colours/sizes/options benefit a lot when using Drupal commerce for their website, as it allows quick and easy expandability and maintenance is hassle-free. Ease of billing and shipping is an advantage as every SKU is allotted as a separate node, which means that every field has a different weight and spec. Robust features such as promo codes, discounts, tax calculations etc. are extremely easy to add to the framework. With the inclusion of shopping cart and checkout process, Drupal Commerce is a totally integrated package. Store makeovers for older establishments and additions/improvements for better functions make Drupal commerce completely future-proof. Drupal 8 is a focused mobile-ready platform that has been built and upgraded as per the changing technology and increased use of hand-held devices like mobiles and tablets. This mobile-first approach is expected from a first-rate platform like Drupal 8, as the future of ecommerce literally lies in the hands of the consumer. Laptops and personal computers lag far behind while considering the usage of mobile phones for access to shopping sites. Drupal 8 has game-changing features which augur well for the future of commerce: Improved loading speed: Drupal 8 has reduced the front-end usage, drastically boosting the loading speeds. This also aids in retaining traffic and decreasing the bounce rate. Mobile toolbar: The administrative toolbar has made access to the various areas of the site easier, while collapsing icons allows vertical orientation for small sized screens. Responsive Theming: As per the use of the devices, whether it is a laptop or a mobile, themes like Stark, Batik and Seven, make automatic size changes to elements and blocks. These features are responsible for making Drupal 8 a winner in all departments and has paved the path for the future of commerce for mobile users. Developers are bound to take to Drupal 8 in a flash, and that’s the sole reason why Zyxware has focused on this fascinating development in the world of web development. Call us to know more about our Drupal development services and ensures that your ecommerce site has the winning edge of Drupal 8 that makes customers happy. References: Drupal 8 is Mobile-first, Global ready Ubercart Vs Drupal Commerce – Which Platform Should eCommerce Owners Choose In 2015 The Future of Commerce on Drupal 8 (and beyond) Drupal Development services Drupal Development Drupal 8 Ecommerce Leave a reply Your email address will not be published. Required fields are marker *

on 21st December 2015 / by Moses Raymond
Ecommerce is evolving at lightning speed and so is the technology that backs it. Recent surveys have pointed out that the dependence on physical purchases for certain products and services will significantly reduce in the coming years, and by 2018, 50% of the world’s population would be part of the online shopping revolution that is sweeping across the globe. In the coming years, ecommerce businesses will have to work smarter to devise newer ways of gaining and retaining customers with better strategies and attractive offers. As 2015 comes to a close, let us look at the ecommerce trends that are expected to rock the New Year. Evolving Buying patterns and behaviour: ecommerce businesses will have to dig deep into their historical data and analyse their customer’s behavioural pattern with regard to: What drives their buying decisions? What do they search for? Why do customers search the way they do? Once this analysis is done, organizations will find it easier to hold the customer’s attention and drive them towards decision-making. This could also lead to a tremendous increase in sales. Mobile-way or no-way: As an organization, you might have already taken the step towards making your website mobile-friendly. If not, it isn’t too late to do so as your potential customer is already a mobile user, and it is the best way to reach and influence his buying pattern. As per the statistics, around 5 billion individuals around the globe own a smartphone and is gravitating towards m-commerce. By 2017, 50% of ecommerce revenue from the US is expected to come from mobile shopping. Hence, reaching out to your potential customer via his/her mobile is the way to future growth and not doing so will take away a large chunk of your business revenue away. Multi-channel Shopping: Surveys indicate that a consumer may not only browse or make purchases using a particular device but could use devices depending on his location. For example, a desktop may be a preferred device for an individual in office while the mobile may be favoured at homes or public places. In this scenario – that involves the use of a variety of channels by the customer in the shopping process - your organization would do well to device a multi-pronged strategy, thus ensuring that you do not miss out on any possible sales or engagement opportunity. The Social Media route: Mobile phones and other handheld devices have pushed the social media interaction to unimaginable levels, as social media users are not location-specific or time-specific. Social media marketing has made promotion of products and special deals as easy as making a phone call. Understand your social media options at hand and choose the best that works for your business. To understand and implement the latest ecommerce trends that will augment your business, join hands with Zyxware and explore the most viable options for your organization. We have fine-tuned IT solutions to near perfection and will be happy to partner with you in boosting your online business.To know more about our Drupal website development services, please get in touch with us. References: 7 ecommerce trends to watch out for in 2016 The 2015 Global Retail E-Commerce Index™ 5 Ecommerce Trends That Will Be Game Changers in 2016 Drupal Development services Ecommerce mobile commerce online shopping Leave a reply Your email address will not be published. Required fields are marker *
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