3 Big Business Problems that every e-commerce company is looking to Solve with Machine Learning
Many big e-commerce companies such as Amazon is relying heavily on machine learning to solve many operational hurdles.BY Shipra Srivastava | Jul 23, 2018 | comments ( 0 ) |
A lot has been changed in ecommerce worldwide and the emerging role of machine learning vouches to change things even further. A study by Gartner predicts that by 2020 over 80% of all customer interactions will be handled by AI. Let’s take a look at the current shape of e-commerce industry in India and how machine learning will affect ecommerce in the not-so-distant future.
Imparting real life experience
As per the industry reports, the Indian e-commerce industry is expected to cross the $100 billion mark by 2020. Owing to enormous global companies such as Walmart which are known for their traditional store business are investing heavily in the ecommerce in India.We do know that technology is the back bone of any e-commerce business in India. However, instead of focusing on how technology is changing and focus on plethora of technologies, e-commerce companies need to focus on what is not changing and what customers want.
Since e-commerce companies has the advantage of data so they can play around shopping habit of the customers. In fact, they can tweak the habit with the right set of technology.
However, most of what people want is based on their real physical and psychological needs; for example, someone can order food based on tempting images and get it delivered by any service aggregator. Though most of the people will prefer to look at the meal options, but most people prefer to look at the meal options, smell it, touch it and consume it immediately. That is reason concepts such as Amazon Go have started taking the shape.
Amazon has invested over five years in developing the technology which is simple, accurate and magical. With Amazon Go has introduced a range of innovation starting from RFID chips, smart shelves to computer vision to bring real time experience. Amazon has head start this concept and time is not far when all physical stores will follow the same suit.
Quick product delivery (Beyond a single day)
It is in human nature that they don’t want to wait. In fact, it is one of the prime reasons many people prefer walking down to nearby store to get the product. Though, sometimes the need could be real and urgent, and at times they can wait for couple of days.
Now the question arises, can e-commerce companies deliver faster in alternative to driving are walking down to nearby stores. As per the research done by a leading ecommerce company more than 75% of the items ordered online are small and weigh less than a couple of pounds. To counter the situation Amazon started scalable and cost effective method of using self-flying drones to deliver small packages in less than 30 minutes. The company is testing its Prime Air drone delivery from last couple of years. Drones will be ground breaking technology in the time to come.
Offering better product assortment
Since, no ecommerce company offer free shipping and handling; hence, people prefer to buy multiple products in the single go. However, Amazon do offer free (or discounted delivery) for its Prime members.
Hence, companies are looking for different methods to add multiple products in the cart. For example, Amazon offers “Frequently bought together” section on the detailed page of an item. These combinations are also selected using machine learning models and are not defined manually by product managers. It is impractical to create and maintain such listing for hundreds of millions of products in the catalog.
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