how amazon feeds on the love triangle of customer AI and ecommerce

How Amazon feeds on the love triangle of Customer, AI, and, eCommerce

Enter into a grocery store, grab what you want, put it inside your bag, and walk away (yes, literally walk away). No need to stand in long queues to check out and pay the bill.

Sounds like an act of theft? But, it’s not.

Because as you grabbed the product and walked out, Amazon identified your face with its face recognition AI, found out the products you picked using image processing AI, and processed the payment from the Credit Card or Bank Account linked to your Amazon account.

The entire process is completed in a snap, only to deliver a hassle-free, convenient, and on-the-go shopping experience.

The ‘Just walk out’ shopping idea might sound so obnoxious and silly (to sellers obviously), but AI-powered Amazon Go Grocery stores are a standing reality across the US.

This is just one example where Amazon’s obsession with Customers, AI and Machine Learning has resulted in a breakthrough solution.

Amazon-AI Relationship

The biggest differentiator for the largest online retailer is the ability to provide unmatched convenience to the customers (with the help of AI and Machine Learning).

Personalized Product Recommendations

Amazon was one of the early adopters of the product recommendation engine and as we talk, the eCommerce giant has made the tech so advanced that it earns 35% of its revenue from product recommendations.

The magic begins from the moment you sign in to Amazon.

The algorithm starts suggesting products you may like or wish to buy. As you browse the product pages, add to cart, or wishlist an item, Amazon’s advanced ML Algo decodes your buying interest and starts recommending products (to cross-sell and upsell) under the labels like ‘Mostly Bought Together’ or ‘Recommended For You’ or ‘Amazing Deals’.

Not surprising to hear why nearly half (46.7%) of US internet users start product searches on Amazon (compared with 34.6% who go to Google first)!

Voice Shopping

And with Alexa-enabled voice shopping, Amazon is taking it beyond tap-and-shop to hands-free shopping by allowing users to find and purchase products and walk through the checkout flow with voice prompts.

Customers can shop using Alexa from a range of devices like Echo, Amazon Fire TV Cube, Echo Dot, and more.

Amazon is constantly widening the gap between itself and rivals by building increasing capabilities in mature AI applications for hyper-personalized recommendations, voice-enabled shopping, forecasting, cloud services, fulfillment centers, and more.

And with successful projects like Amazon Go, the tech-focused retailer is going beyond online to deliver super-personalized shopping experiences in physical stores. Amazon’s AI strategy is a proven roadmap for small to medium-sized businesses who want to use the power of AI and machine learning to scale up their business avenue online or offline.

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