machine learning for retail and ecommerce

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Machine Learning (ML) for eCommerce and Retail Dr. Andrei Lopatenko Director of Engineering, Recruit Institute of Technology Recruit Holdings former Walmart Labs, Google (twice), Apple (twice) [email protected]

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Page 1: Machine Learning for retail and ecommerce

Machine Learning (ML) for eCommerce and Retail

Dr. Andrei Lopatenko Director of Engineering,

Recruit Institute of Technology Recruit Holdings

former Walmart Labs, Google (twice), Apple (twice) [email protected]

Page 2: Machine Learning for retail and ecommerce

ML for eCommerce

• Search, Browse, for commerce sites and application

• Help users to find and discover items they will purchase

• Maximize revenue/profit per user session

Page 3: Machine Learning for retail and ecommerce

Search

Page 4: Machine Learning for retail and ecommerce

Search - ranking

ranking

Page 5: Machine Learning for retail and ecommerce

Search - LHN

Left Hand

Navigation

Page 6: Machine Learning for retail and ecommerce

Search spell correction

Page 7: Machine Learning for retail and ecommerce

Search type ahead

Page 8: Machine Learning for retail and ecommerce

Browse

Page 9: Machine Learning for retail and ecommerce

Search data size

• Catalogue items • 8 M items now compare ~ 400 M

Amazon / eBay • X 10 in near future • 2 K text description per item + images • Several hundreds of structured attributes

per catalog

Page 10: Machine Learning for retail and ecommerce

Search – user searches

• Tens of millions per day • Tens billions session per year • Online sales 13.2 B per year (http://

fortune.com/2015/11/17/walmart-ecommerce/)

• 500B per year sales offline stories (8% USA economy) in ~ 11K stores

• The number of transactions ~ 10B (public data)

Page 11: Machine Learning for retail and ecommerce

ML addressable problems

• Learning to rank • Given a query, what’s the list of items

with the highest probability of conversion (purchase), ATC (add to card), page view

Page 12: Machine Learning for retail and ecommerce

ML addressable problems

• Typeahead • Given a sequence of characters types by

user, what’s most probably competitions, what are most probable items users wants to buy

Page 13: Machine Learning for retail and ecommerce

ML addressable problems

• Spell correction • Given a user query, what’s the query user

actually wanted to type

Page 14: Machine Learning for retail and ecommerce

ML addressable problems

• Cold start • Given a new items with it’s set of

attributes and no history of sales or exposure on site, predict items sales and item sales per query

Page 15: Machine Learning for retail and ecommerce

ML addressable problems

• Prediction of LHN • Given a user query, what’s the best set of

facet and facet values, which gives higher probability of users interacting with them and finally buying an item

Page 16: Machine Learning for retail and ecommerce

ML addressable problems

• Query understanding • Given a query, build a semantic parse of

query, tag tokens with attributes: blue tshirts for teenagers -> blue:color tshirts:type for:opt teenagers:agerestriction10-20

• Classification: blue tshirts for teenagers: -> type:apparel, price preference: 10-30, releaseyearpreference: 2014-2016

Page 17: Machine Learning for retail and ecommerce

ML addressable problems

• Related searches • Given a query, what are queries which are

either semantically close to this one, or represent coincidental users interests

• Nike shoes -> adidas shoes, sport shoes, • Coffee mugs -> travel mugs, photo coffee

mugs, cappuccino cups

Page 18: Machine Learning for retail and ecommerce

ML addressable problems

• product discovery • help users to explore product assortment, • drive users to diverse products • reduce risk of selecting irrelevant items • help to find price,quality,brand etc

alternatives • reduce pigeonhole risk • provide relevant data to make a decision

Page 19: Machine Learning for retail and ecommerce

ML addressable problems

• Image similarity • Given images of the items, give other

items such that images of those are visually appealing to the users which like the original item (appealing by shape? Color? Texture?) -> causing high conversion in recommendation

Page 20: Machine Learning for retail and ecommerce

ML addressable problems

• Voice search • Given voice input, reply with a list of the

best items • “what are the cheapest samsung tvs in the

store” • “what is best deal on queen bed today?”

Page 21: Machine Learning for retail and ecommerce

ML addressable problems

• extraction of item attributes • Given an item: what are item attributes:

brand, color, size (wheel, screen, height, S/M/XL, Queen/Twin/King/Full), Gender, Pattern, Shape, Features

Page 22: Machine Learning for retail and ecommerce

ML addressable problems

• Representations of users : actions on websites/apps -> searches, clicks, browsing behaviour, product -> purchase preferences, reviews, ratings, return rates

Page 23: Machine Learning for retail and ecommerce

ML addressable problems

• title generation: how to generate the title which will cause maximum conversion rate

• which product attributes select for the title?

Page 24: Machine Learning for retail and ecommerce

What makes a good title?

Page 25: Machine Learning for retail and ecommerce

What makes a good title?

Page 26: Machine Learning for retail and ecommerce

Limits

• Most models should be served in production

• 50ms on prediction • Part of big system, memory limits ~ 10G

Page 27: Machine Learning for retail and ecommerce

Retail

Page 28: Machine Learning for retail and ecommerce

Retail

• Key directions which require machine learning:

• discounting tools • coupons and rewards • loyalty • inventory management

Page 29: Machine Learning for retail and ecommerce

Inventory management

• Customer want to buy products • Customers have diverse needs • Products should be in stock, ideally in

warehouses close to customers • but it’s expensive to store products • Problem: How many products of each type

should be stored, when product supply should be refilled?