How to Boost Product Classification With AI

product classification with AI

Here’s the golden rule for every online enterprise or marketplace: Your online catalog must always be up-to-date and search friendly, despite the rapid influx of inventory and fluctuation in product availability. That is easier said than done, especially if you handle a wide variety and large volume of products from different countries. 

Well-organized product categorization and classification are key to your website’s traffic and customer search engine, but also contribute significantly to your logistics and operations behind the scenes. In order to prevent costly errors due to faulty product classification, you need an AI-based platform that automatically and accurately categorizes merchandise. 

What are the benefits of AI-powered product classification? 

Empower accurate product mapping

In order to ensure accurate product mapping, you must first create organized product groups. This means forming macro-categories (dresses, for example) and micro categories that logically fall underneath the main category (casual dresses, summer dresses, etc). AI-powered product taxonomy enables accurate macro and micro categorization predictions based on category ID and taxonomy tags. Product classification using machine learning prevents costly manual mistakes.   

Optimize tariff classification and customs compliance

When dealing with a large volume of products from numerous countries and various retailers there is much room for error. An AI-based system has the ability to use data such as manufacturer, product description and other input to automatically ensure customized classification and accurate tariff codes. The machine-learning classification module can be modified based on each country’s code in the Harmonized Commodity and Coding System, facilitating faultless shipments to customers worldwide.  

Recommend products based on past customer experiences

AI-based classification can be used to recommend new products based on a customer’s past browsing and purchase history. Today’s customers desire personalized content and special offers based on their individual preferences. AI-categorization, which provides actionable insights, enables the delivery of individualized messages. This machine learning tool is used by large businesses like Netflix and Spotify. 

Correlate crucial data of different classes

Aside from the ability to match data within a given class, AI-based techniques also enable the correlation of data from different classes that share association. Machine learning integrates meta-data analysis to achieve a deeper understanding of data. This input enables more discerning automatic cataloging for easy discovery through search. By combining in-depth classification and correlation capabilities, AI provides enterprises with the tools to locate, inventory and map crucial data.

The days of manual categorization for online catalogs are long gone. With inventories counting tens of thousands or even millions of products, most large enterprises are transitioning to automated AI-based platforms to ensure consistency, prevent duplications, and increase customer traffic. 

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