E-commerce and artificial intelligence
Artificial intelligence (AI) is an area of computer science that emphasizes the creation of intelligent machines that work and react like humans. And AI has been in our life for long time, for example, Google’s search engine, Apple’s voice assistant, Amazon’s personalized shopping recommendation…The retail industry and the e-commerce also used the technique of AI. There are three obviously applications in e-commerce.
Fix the Price
Today’s online retail industry is booming and new challenges are given to the start-up companies. Faced with the increasingly fierce competition in the market, the price of goods should be changed with the market. This long-term price adjustment, it isn’t a small challenge for most of the store.
For example, for the business on Amazon, the continual adjustment of the price is even more important. Because Amazon has a Buy Box screening mechanism, in each category, select a seller to occupy the position of Buy Box. The selected seller can enjoy a steady stream of orders and concerns. In short, long-term price adjustment isn’t a simple thing.
But the technique AI is good at this problem of pricing. Through the complex learning algorithm, AI can continually assess the competitive environment of the dynamic market, so that to solve the problem of pricing.
The management of the combination of commodity
For retail operation, another important aspect is the management of the combination of commodity, which means to decide what goods continue to sell, what goods to re-purchase, what goods are no longer purchase. The management of the combination of commodity requires strong predictability. Retailers need to monitor the market trend, and then adjust the combination, so that they can know the competitiveness of various products.
Large companies like Amazon and Wal-Mart are constantly monitoring their merchandise and are equipped with a team of data scientists dedicated to doing this. As the result of the development of artificial intelligence and algorithmic technology, some small e-commerce companies are now beginning to have the ability to manage these management of combination.
So that we can find that using AI to personalize the customer journey could be a huge value-add to retailers.