Optimizing marketplace efficiency with AI-driven classification

For e-commerce platforms to function smoothly, product categorization must be consistent and accurate with data interoperability at its core. However, for a leading open network digital commerce platform, classification mismatches due to inconsistent product tagging by sellers were disrupting transactions.

Initially, product categorization was handled manually, followed by an NLP-based ML model trained on historical data. But as new products emerged and taxonomies evolved, model accuracy dropped, requiring frequent retraining and human intervention—leading to higher operational costs and inefficiencies.

That’s where Netscribes stepped in.

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Revolutionizing data interoperability with Gen AI

As the marketplace evolved, so did its challenges. The NLP-based classification model struggled to keep pace with rapidly changing product categories, leading to misclassifications, transaction delays, and mounting operational costs.

To address these limitations, Netscribes introduced an advanced GPT 3.5-powered classification model, designed to learn and adapt in real time.

With Few-Shot prompting and dynamic taxonomy management, the AI could recognize new product categories on the fly—without the need for extensive retraining. This meant fewer errors, more precise classifications, and a seamless experience for both buyers and sellers.

Previously, updates to taxonomies caused disruptions. However, they were now incorporated effortlessly, ensuring that the system remained agile and responsive. Moreover, by leveraging Gen AI for data interoperability, the marketplace transformed into a self-learning ecosystem—where product classifications stayed accurate, transactions flowed smoothly, and search relevance continually improved. Ultimately, our goal was to create a smarter, more efficient platform built to scale with the ever-changing demands of e-commerce.

Read more: Revolutionizing ecommerce product categorization with LLM (GPT)

Driving operational excellence with AI

With an intelligent, AI-driven approach to product categorization, the client experienced:

  • Faster model upgrades – Taxonomy updates and improvements were rolled out swiftly.
  • Greater efficiency – Operational bottlenecks were eliminated with automated classification.
  • Drastic time savings – Model retraining time dropped 85.71% — from 2 weeks to 2 days.
  • Significant cost reductions – Less manual intervention meant lower maintenance and support costs.

By harnessing Gen AI-powered data interoperability, the client transformed their e-commerce ecosystem into a self-learning, highly adaptive network. As a result, they paved the way for scalable and efficient marketplace management.

Scaling the future of e-commerce with AI

Data interoperability is the backbone of seamless online transactions. With Netscribes’ data engineering services, businesses can reduce inefficiencies, enhance search accuracy, and optimize operations at scale.

Want to see how AI is revolutionizing digital commerce?
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