It is no brainer that the e-commerce market has transformed the Indian market like never before. Thanks to factors like rising smartphone penetration, the launch of 4G network, and increasing consumer wealth, analytics-driven customer engagement, and digital payment, the e-commerce sector is on an upward trajectory. It is projected that this industry will surpass the US to become the second-largest E-commerce market in the world by 2034. According to the PWC survey, with Internet penetration expected to almost double to 60% by 2022, the nation is arguably the world’s most promising Internet economy, with a rapidly increasing ‘netizen’ population. Further owing to improving data affordability, consumption growth, and newer financial products, the e-commerce market is set to grow, be it across e-tail, travel, consumer services or online financial services. This also implies e-commerce will not only boost the Indian economy but it will also have a cascading effect on other industrial verticals too. Meanwhile, the niche leaders are now planning to invest in machine learning to enhance the offerings of this sector.
Machine learning is known for its ability to self-learn and retrain itself by studying a given data set. In the e-commerce space, this AI application can learn what customers prefer and how they want to see information to get them to make a purchase. Then it can test and adapt, using new options and information to slowly refine the best way to reach your customers.
Better Search and Display
When a user wants a product on an e-commerce store, he needs to search for it using the preferred keywords. So, the site owner must ensure that they have attributed those keywords to products that users are searching for. Machine learning looks for synonyms in the nouns provided by a user as well as similar phrases people use for the same type of problem. It does this by analyzing the site and its metrics, thus, allowing e-commerce sites to prioritize click rates and existing conversions while putting high-rated products on the top of the page.
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