Machine Learning Algorithm Applications in E- Commerce Platforms

The internet and e-commerce have been in existence for several decades, while machine learning (ML), a subfield of artificial intelligence, is a relatively recent yet highly influential development. Moreover, it is widely used to offer highly relevant products and services, optimize prices, uncover fraudulent activities, and improve customer trust. It contributes to evidence-based decision-making, operational productivity, and enhanced end-user satisfaction. This paper investigates the key applications of ML in e-commerce, focusing on recommendation systems, predictive analytics, dynamic pricing, and customer service automation. From reviewing the current literature and analyzing the industrys real-life use scenarios, the main benefits of ML are summarized, including scalability, competitive advantage, and continuous improvement over time. Issues such as data quality, algorithmic bias, privacy, and governance are also discussed in depth. The results suggest that ML can significantly change digital commerce strategies, guide informed business decisions, and maximize customer satisfaction in a global e-commerce setting.

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Publication Details

Journal
Advances in Economics Management and Political Sciences
Published
2025-09-24
DOI
https://doi.org/10.54254/2754-1169/2025.bl27196
Primary Topic
Big Data and Business Intelligence
Type
article
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article

Machine Learning Algorithm Applications in E- Commerce Platforms

Yuying Wang
Advances in Economics Management and Political Sciences
Big Data and Business Intelligence
article

Machine Learning Algorithm Applications in E- Commerce Platforms

Yuying Wang
article en

Abstract

The internet and e-commerce have been in existence for several decades, while machine learning (ML), a subfield of artificial intelligence, is a relatively recent yet highly influential development. Moreover, it is widely used to offer highly relevant products and services, optimize prices, uncover fraudulent activities, and improve customer trust. It contributes to evidence-based decision-making, operational productivity, and enhanced end-user satisfaction. This paper investigates the key applications of ML in e-commerce, focusing on recommendation systems, predictive analytics, dynamic pricing, and customer service automation. From reviewing the current literature and analyzing the industrys real-life use scenarios, the main benefits of ML are summarized, including scalability, competitive advantage, and continuous improvement over time. Issues such as data quality, algorithmic bias, privacy, and governance are also discussed in depth. The results suggest that ML can significantly change digital commerce strategies, guide informed business decisions, and maximize customer satisfaction in a global e-commerce setting.

Advances in Economics Management and Political SciencesVol. 220(1)
Rutgers, The State University of New Jersey (US), Rutgers Sexual and Reproductive Health and Rights (NL), Rütgers (Germany) (DE)
Openalex Percentile: Top 58%
Big Data and Business Intelligence
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