Amazon & AI: Transforming Retail

As one of the largest online marketplaces in the world, Amazon has a massive influence on the way millions of people shop. Their popularity, product diversity, and offered convenience have made them a go-to destination for consumers all over the globe. Meaning, if they adopt AI, they’ll play a notable role in the way millions of consumers worldwide adopt AI. 

Sebastiaan Kok

As AI enables automation, efficiency, and data-driven insights, human expertise and creativity becomes more critical than ever. Successful brands will not only lean on the most cutting-edge technologies, but also on human experts who can add value in areas such as strategic decision making, content curation (e.g., on top of AI content creation), human customer service and support (e.g., alongside virtual assistants), quality assurance, innovation and creativity, ethical thinking, and human-to-human relationship or partnership building. 

The “human touch” married with AI-backed solutions are what will – together – revolutionize the overall consumer experience. Brands can proactively use a combination of human and AI support to improve their performance on Amazon (and beyond). Looking ahead to the future of the online shopping experience, here are a few key insights, for both consumers and brands, to takeaway:

What’s going to change, and how can we keep up?

More Personalized Recommendations

  • Insight for consumers: Expect even more accurate and relevant product recommendations based on your browsing history, purchase behavior, and preferences. 
  • Insight for brands: Leverage AI to run more targeted sponsored product campaigns, as well as to optimize ad bids, keywords, and ad placements for better visibility and conversion rates. People will manage the processes and quality assurance, and maintain communication lines across the business. 

Better Search Results

  • Insight for consumers: Natural language processing and image recognition capabilities will enhance the accuracy of search queries, enabling consumers to find products more easily, even with less specific or detailed search terms. 
  • Insight for brands: Use AI-based keyword research tools to identify high-demand keywords relevant to your products. Incorporate these keywords strategically into product titles, descriptions, and backend search terms to improve visibility and organic rankings. People will manage the processes and quality assurance, and maintain communication lines across the business. 

Enhanced Customer Service

  • Insight for consumers: Expect more AI-powered chatbots and virtual assistants to handle customer inquiries and provide instant support, which will mean quicker responses around the clock.
  • Insight for brands: Leverage AI-powered customer engagement tools to automate personalized email campaigns, review requests, and post-purchase follow-ups. Ensure human staff are available and well-trained to pick up where AI lacks, use AI to make data-driven decisions, or to take over for when consumers express their preference for human interaction. 

Smarter Pricing and Deals

  • Insight for consumers: AI tools can optimize prices in real time (dynamic pricing), which will better reflect market conditions, demand patterns, and competitive factors. This means AI will help you get better deals. 
  • Insight for brands: Use AI-powered pricing tools, both native to Amazon (like automated repricing) and external solutions, to analyze market conditions, conduct competitor analysis, and understand demand patterns. This helps you adjust prices dynamically to remain competitive and maximize profitability. People will manage the processes and quality assurance, and maintain communication lines across the business. 

Improved Product Quality

  • Insight for consumers: AI-powered review analysis, sentiment analysis and review aggregation provide valuable insights into product quality, customer satisfaction levels, and potential issues will help consumers choose products with more confidence.
  • Insight for brands: Use AI to monitor and analyze customer reviews, social media mentions, and feedback. This helps you track customer sentiment, identify product improvement opportunities, and respond to customer concerns effectively. Humans are integral to this process, especially when it comes to understanding sentiments and paying attention to social cues or cultural nuances. 

Streamlined Shopping Experience

  • Insight for consumers: AI-driven supply chain optimization will result in faster delivery times, improved inventory management, and reduced stockouts. This helps consumers receive their products on time, reducing frustrations associated with delays or unavailable items.
  • Insight for brands: Use external AI-driven inventory management tools to analyze historical sales data, market trends, and seasonality patterns. This helps you optimize inventory levels, avoid stock outs or overstocking, and improve overall efficiency. AI algorithms can also analyze historical data and real-time variables to streamline operations, reduce costs, and improve delivery times. People will manage the processes and quality assurance, and maintain communication lines across the business. 

Fraud Detection and Security

  • Insight for consumers: AI algorithms will enhance fraud detection mechanisms, protecting consumers more from counterfeit products, fraudulent sellers, and unauthorized activities. This will bolster consumer trust and create a safer shopping environment.
  • Insight for brands: Utilize external AI-based fraud detection systems to complement Amazon’s native fraud detection capabilities. These tools can identify and prevent fraudulent activities, protect brand reputation, and safeguard customer transactions. Work with human legal teams to deploy holistic legal foundations and measures. 

Overall, AI is increasingly and significantly influencing the way people sell, shop, advertise, and interact within the ecommerce landscape. Amazon, in particular, holds significant influence due to its immense scale and widespread popularity. As giants like Amazon continue to integrate AI further into their operations, it is inevitable that consumers will increasingly utilize AI, often without even realizing it.

After all, AI’s not just about trying to replace repetitive tasks, but more about pushing our boundaries in pursuit of more opportunities. Sure, we’re all very busy, and if certain tasks can be done faster and more efficiently, why not save your time? That makes sense, but that’s only one small part of it. In the near future AI will grow so massively, and in a way we don’t fully understand yet that we will constantly be asking ourselves, ‘What is this? Why is this happening? How is this possible?’ 

We’re now in the middle of something that’s so big and unexpected – it’s important for people and companies to keep up with that.

Brands would do well to get their human staff up to speed – to cultivate cultures that value curiosity, strategic and critical thinking, empathy, and lifelong learning. In doing so, brands can create a space where AI and humans work together seamlessly, boosting each other’s efforts towards shared goals.

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