Artificial Intelligence

Impact of ML in the Ecommerce industry

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A lot has changed in the ecommerce industry over the past decade. Technology has been one of the most crucial drivers for these changes. With AI and machine learning becoming ever more integrated into our daily lives, ecommerce is not far from being influenced by machine learning. As ecommerce continues to grow by 20% every year, technology will keep playing an important role in how customers interact with online stores. Further, mobiles will be responsible for around 70% of the total ecommerce traffic. Artificial Intelligence and machine learning will enable handling of over 80% of the customer interactions.

Impact of ML in the Ecommerce industry

Here’s how machine learning will impact ecommerce in the near and distant future:

Customer shopping experiences:

Machine learning allows ecommerce businesses to create more personalised customer experiences. Customers prefer to communicate with their favourite brands and ‘expect’ personalization in the communication. Machine learning can learn your shopping habits and preferences and hence offer more relevant suggestions and other communications.

Search results:

Improving search-results means more business for ecommerce stores. Machine learning can improve ecommerce search results by taking into account personal preferences and purchase history. Machine learning can create search ranking based on the relevance of the page for that particular user – unlike the traditional search methods that uses keywords.


Artificial intelligence can use not only customer’s digital data, but also analyse their in-store behaviour. Face recognition software will be used to re-target the ads for that latest product you checked out in-store.

Product recommendations:

Machine learning can be used in ecommerce to recommend products according to patterns in customer’s shopping behaviour. This helps increase conversions.

Marketing guide:

Machine learning can recognize patterns and predict trends so that businesses can find out what people respond to, what can be changed and what can be entirely eliminated from the marketing campaigns. This helps maximise returns on a marketing campaign.

Price Optimization:

Machine learning algorithms can help collect information regarding pricing trends, competitor’s prices and demand for various items – and combine this information with customer behaviour to determine the best price for each of your products.

There are a lot of exciting opportunities for machine learning in ecommerce and it’s becoming a means of improvement in online retail. It makes selling online more effective and rewarding.


How is Drop-Shipping used in Ecommerce?

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The only difference between drop shipping and the standard retail model is that the merchant that is selling does not own the inventory or stock it. Instead, suitable wholesalers are sought for the fulfilment of orders. Many times the merchant never sees or handles the product!

How is Drop-Shipping used in Ecommerce

The main advantage of such a model is that it is possible to launch an ecommerce store without too much initial investment. Traditionally, ecommerce stores’ biggest challenge was to stock up inventory before launch. With drop-shipping, you do not have to buy the product unless you have already made a sale.

Getting started

It’s easier to begin when you do not have to worry about the basics of the quantity of products in stock,the physical space required for maintaining the stock and inventory. Further, with drop shipping, ecommerce stores do not have to worry about packaging and shipping orders, tracking inventory and accounting for each product, handling returns and managing stock levels.

Overhead expenses

With drop-shipping, the overhead expenses are at a minimum. In fact, you can also run a drop shipping business from your home.

No restrictions for location

As long as you have the means of communication with suppliers and customers, and an internet connection, you can run a drop shipping ecommerce business from anywhere!

Wide selection of products

Because you do not have to actually purchase the product, you can offer a variety of products to your customers.

Easy to scale

When orders increase, the suppliers need to worry about the stock. You can easily scale as much as you wish – and suppliers will be more than happy to provide.

The other side of the coin in drop shipping is that margins are pretty low. But, taking it positively, you’ve invested low too – so low margins could be a good start until your business catches up!