CASE STUDY

Forecasting Models for Marketplace Optimization

AT A GLANCE

A marketplace platform enhanced its product categorization and demand forecasting processes with advanced AI and automation. By developing deep learning models for image classification and leveraging Amazon Forecast for demand prediction, the platform achieved greater precision and efficiency. Automated AWS pipelines ensured real-time readiness and seamless deployment, streamlining operations and setting the stage for future AI-driven innovations.

Client information

Company Name
E-commerce provider
location
Canada
SIZE
Start Up
INDUSTRY
Marketplace
Services Provided
Marketplace platform
82%
Classification accuracy
50%
Reduction on manual intervention

CHALLENGE

The client, a marketplace platform, aimed to enhance their product categorization process through improved image classification and develop predictive models for order forecasting. Additionally, they required an automated data pipeline to ensure seamless model deployment and maintenance.

SOLUTION

Developed and fine-tuned an EfficientNet B0-based image classification model for 39 categories and a demand forecasting model using Amazon Forecast, with DeepAR+ outperforming other tested algorithms like ARIMA and Prophet. Automated AWS pipelines for model retraining and data preprocessing, and deployed both models via AWS Lambda and API Gateway for real-time and batch predictions integrated into the client’s workflow.

IMPACT

  • Image Classification Accuracy: Achieved 82% accuracy in classifying 39 product categories, greatly improving the precision and efficiency of product listings on the marketplace.
  • Demand Forecasting Accuracy: The DeepAR+ algorithm provided highly accurate demand forecasts, with a Weighted Absolute Percentage Error (WAPE) below 0.20, ensuring reliable predictions for the upcoming seven days.
  • Enhanced Operational Efficiency: The automated pipeline and real-time model integration significantly streamlined operations, allowing the organization to manage both product categorization and demand forecasting with at least a 50% reduction on manual intervention.

TOOLS

Prophet
AWS Labmda
AWS Gateway
AWS CodePipeline

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