How the eCommerce Industry is Affected by Machine Learning

Who would have thought that computers could recognize and learn patterns to decide for themselves? The same goes for the field of eCommerce.  Nobody could have imagined it would be what it is now.

Machine learning has so many apps in the industry that stretches far beyond analytics. But what is machine learning? It’s an AI app that provides systems that are able to learn and improve from experience automatically, with no need for explicit programming.

Additionally, it’s focused on developing computer programs that could access data and use it for learning themselves. The learning process starts with data observations, like direct experience, examples, or instruction, to find data patterns and make better decisions in the future. The main objective would be to let computers automatically learn without a human intervening or assisting and adjust actions accordingly.

Data-driven decisions are increasingly making the difference between staying ahead of the competition of falling behind. In any IT endeavor today, such as in particular eCommerce website development, machine learning could be the key to unlock the value of customer and organization data and enact decisions that keep a company stays on a competitive edge.

For an industry that relies heavily on digital and technological advances, how does machine learning make its impact on the eCommerce space? Let’s find out.

Machine Learning Impacts the Field of eCommerce

The eCommerce industry today is packed with various technologies and platforms that business organizations of all shapes and sizes could implement and integrate. One of the most popular and rising eCommerce trends nowadays is online shopping. One of the preferred online shopping solutions today is Shopify, and Shopify app developers continues to be a lucrative business venture for many across the globe.

The following are the effects that ML (machine learning) has on the industry.

1.  Better display and learning

ML could provide users the ability of exactly finding out what they want based on the search query. Users at present find products on an eCommerce website with keywords, thus a website owner should make sure that they’ve attributed the keywords to the products that users are looking for.

Through a wider set of synonyms support, machine learning could help in boosting this. Smart machine learning searches for synonyms of the used keywords, and similar phrases that people use for the same query. The machine learning capability of doing this comes from its ability to analyze a website as well as its metrics.

An eCommerce search engine that uses the profile of a customer has a bigger chance of selling listed products since the system predicts what the customers would like to see, instead of listing all products matching the keywords.

2. Several Ways of Making People Purchase

Machine learning builds opportunities for numerous virtual buying help with functions. This includes a reminder to users whenever prices drop below a particular limit, as well as reminds them to have the filter of their AC systems changed every few months. eCommerce websites could take this further via the use of coupons to lower prices up to an extent, or big savings ahead of the holidays.

Machine learning gets rid of much manual guesswork and labor to identify consumer segments and enable eCommerce owners to send promotional content with various price listings. Using profiles and an analysis of the browsing and/or purchase data, the ML system could build sales campaigns that meet several threshold criteria, which are related to margins, inventory, and repeated business.

3. Protection from Fraud

The bigger the data amount is, the easier it will be to catch anomalies. Machine learning could identify data patterns, determine what ‘normal’ behavior is and notify admins when something isn’t. Fraud detection is the most common app of this.

The issue of customers purchasing with stolen credit cards, or payment retraction after an item is delivered is widespread in the eCommerce industry. The detection and prevention of such fraud are almost impossible without ML, which processes repetitive data fast to detect frauds before they occur.

4. Chatbot Technology

Bots, backed by machine learning can provide a more ‘human’ conversation with users via a structured comprehension of data. Using ML, bots could be programmed with general information to respond to questions by customers. The more interaction a bot has with people, the more it comprehends the eCommerce site, as well as the product and service offerings. 

Bots can do so much more as more complex learning is employed, like delivering customized coupons, identifying prospective upselling opportunities, and addressing the long term needs of customers. Bear in mind however that at all times, you should respect the customer’s private information

The majority of chatbots are third-party apps and could be gathering or using the data of a customer to answer queries or automatically create social media content. Arrangements should be made to only lay down the amount of data to be used and make certain of its anonymity.

5. Better Management of Inventory

One of the nagging problems in eCommerce is inventory management. Sometimes, sellers oversell, shipments could take a long time to deliver or a wrong forecast.

Inventory management could be a pain if manually done, which could eventually impact accurate predictions on sales that subsequently could lead to cash flow issues. Machine learning could make future forecasting much more precise. It helps not just in easy supply chain management, it ensures that you understand customers better as well, including their behaviors.

6. Analyzing Trends

Before you put products up for sale on an eCommerce website, you should analyze their trend, whether the product is a best-seller, normal seller, or outdated. Moreover, trend analysis impacts procurement, regardless if it’s from internal fulfillment or an external vendor.

Products returned would play a big role in procurement if trends are not analyzed properly. It is thus critical to analyze product trends since this could minimize the overall catalog size, the cost of maintenance, and boost the use of warehouse space.

This could be achieved seamlessly with the use of machine learning as it analyzes and crosses compares reviews of products, social media inputs, and ratings. Low-rating products could be removed from the website.

7. Better Understanding of Customers

Today, customers demand a more personalized experience as they shop online. And if your brand isn’t listening to them, then they would find another that will. To meet this demand; the only way would be to better understand customer preferences.

Since almost all interaction with a customer is digital, eCommerce websites gather big customer data amounts, which includes psychographics, demographics, and behavioral data. The complex part is to put them all together and derive actionable insights from them for merchandising and decisions in marketing. This is where machine learning truly shines. 

ML algorithms assess the customer inventory, as well as behavior data to exactly, predict just what they want. Furthermore, it could plunge deep into complex journey analytics, as well as expose opportunities, which you don’t even know exist so you could provide customers with hyper-personalized experiences.


In any eCommerce website development in today’s highly digitized world, the continuous technology evolution helps a big deal in streamlining business processes, particularly in online business management. Machine learning is a necessary technology investment that positively impacts the field, providing more opportunities for entrepreneurs and consumers alike.