“Machine learning is a field of artificial intelligence. It uses statistical techniques to give computers the ability to learn from data without being explicitly programmed. ”This definition comes from Arthur Samuel, the inventor of the term and one of the pioneers in the field of artificial intelligence.

The definition dates back to 1959, but it’s still relevant. However, the framework conditions, possibilities, and areas of application for machine learning have changed. Today, machine learning systems can easily process loads of data, make precise predictions from them, and have become very versatile in some industries.

So how are these machines so capable? Can AI and ML help your e-Commerce business? If so, how? Let’s dive in!


Machine learning is a process. The ability of a machine to recognize patterns, interpret them correctly, and then react correctly is only created by rigorously training with data. At its core is an algorithm that analyzes behavior, uses it to derive forecasts with the help of artificial intelligence, which it then checks and then makes adjustments if necessary.

For instance: Can you predict tomorrow’s shopping behavior? It’s complicated. But a machine surely can!


The retail industry has undergone many changes in the past few years. The technological advancements and the whole transformation have led to the creation of a new distribution channel: e-commerce. This arrival has profoundly transformed the behavior of both – distributors and consumers.

Some had to change the way they produce their services. Many have even reviewed and revamped the whole purchase and selling process. But, these are not the only changes! On a macro level, internationally, the online retail business saw an inevitable opening across the world by some of the big players. This was accompanied by the establishment of foreign distributors. As the e-commerce industry scaled up, opportunities increased exponentially!

It was at the beginning of this decade that e-commerce started a real ascendancy. Brands after brands started flocking to the web. It was obvious that the phenomenon was here to stay and grow. The development of e-commerce wasn’t just a hoax!

As the e-commerce industry boomed, competition increased. Along with this, companies started valuing the customer experience more than ever. Machine learning and artificial intelligence became something of a magic word for platforms and large online retailers.

Machine learning in e-commerce – more than just a buzzword

There is no denying that AI technology has made great strides in recent years. You can find a plethora of applications online, whether it’s the AI-based solution Google Translate or in the subtitles generated with the help of an AI on YouTube. Gone are the days when companies in e-commerce lacked the concept and the will to use artificial intelligence. However, there’s still a lack of basic understanding of how AI works and what opportunities machine learning can offer in e-commerce.

Let’s make it clear for you!

The ability of dynamic pricing

The first brick-and-mortar retailers have even started to set their prices with the help of algorithms. AI systems take into account aspects such as inventory, current demand, product lifespan, the day of the week, sales campaigns, competitor prices, or the weather in dynamic pricing. With the help of loyalty cards, companies can offer their customers individual discounts and thus strengthen their loyalty.

At the same time, companies with such a flexible pricing strategy manage demand and value creation better than the others – for example, stores taking the best-before date of their goods into account in their discount campaigns. You can easily reduce the number of goods that get wasted every year.

Personalization, segmentation, targeting

Companies have started using user behavior on landing pages, in relation to product offers and advertising material to offer more precise information and communication. You will see all your irrelevant advertising gone in the near future.

And for small and medium-sized businesses that still think AI is complicated, the market is full of tailor-made AI tools that can be used without much previous knowledge. For example, you will find various forecast tools that predict your future warehouse needs.

Improved customer experience with AI

Medium-sized companies are using machine learning to optimize their customer approach, automate their back-end processes, and check their inventory with foresight. Using AI, retailers primarily expect higher yields, better competitiveness and cost, and margin advantages.

With the correct usage of artificial intelligence with an expert team, companies can truly surprise their customers. Shopping in an e-store is a unique experience. For instance, just consider the amount of ease and eye-opening moments that augmented and virtual reality applications, service robots at the POS, and navigation systems in large supermarkets offer to customers.

Our team of experts can assist you implement all these easily once you get in touch!

As important as price and quality: the customer experience

Customer experience has become as important as quality and price. This is probably why many customers are so open to AI applications. The quality of the shop search and filter is optimized by learning search applications and filters that understand user intent more and more.

ChatBots can help answer routine inquiries from your customers in the e-commerce shop. The processing speed in customer support increases significantly, so that customer satisfaction increases and customer experience improves.

This list of possible areas of application or AL and ML can certainly be expanded significantly. However, it must be noted that these systems have to be trained individually for a specific task. So the more specific an application, the more work is required to introduce an AI solution.

All in all,

Machine learning and AI in e-commerce are well beyond a pioneering stage. Rather, it is currently establishing itself and has opportunities to become one of the most relevant competitive factors in e-commerce. If you are a market participant with ambitions, then you have to use this phase to build their own AI solutions.

Get in touch with us to know more about how our experts can help your e-commerce business implement AI and ML solutions in your model.

A Geek by nature, I love to work on challenging development projects. I have been in Programming for last 13 years and still too young to learn anything new. I have exceptional command using AngularJS and Python/.Net/NodeJS.

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