Importance of AI for Amazon Australia

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This report discusses the importance of AI for Amazon Australia and how it has changed the working of the company. It also talks about the current operations of Amazon, the process of buying and selling on Amazon, and the different ways in which Amazon uses AI in its business operations.

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Contents
Introduction......................................................................................................................................2
Overview of company..................................................................................................................2
Current operation of Amazon..........................................................................................................3
Process of Amazon Australia.......................................................................................................4
Process of Buying on Amazon....................................................................................................5
Importance of AI for Amazon Australia..........................................................................................5
Personalised recommendation.....................................................................................................6
Advance Visual Search Engine...................................................................................................6
Amazon uses Artificial Intelligence................................................................................................7
Amazon uses An AI Management Strategy.................................................................................7
Amazon uses AI in entire office..................................................................................................8
Amazon uses AI in Customer experience....................................................................................9
Amazon uses AI in several ways...............................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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Introduction
Artificial intelligence (AI) is one of the hottest themes in ever changing across world. AI is new
technology that is far ahead to offer industry with innovative as well as smart business solutions
in the working of business. E-commerce business applies AI technology for their operations that
is linked with purchase and selling activity of the product that is conducted through the internet.
The aim of the report is to evaluate information technology issues for the e-business and to
provide solutions with effective use of the technology. The company that has been is selected is
Amazon Australia, an e-commerce company. The report talks about the current operations
conducted by Amazon Australia and importance of AI in business. Along with this, it also
includes ways through which company uses Artificial intelligence in their business operations.
Overview of company
Amazon is a US-based online retailer who started their business operations in the year 1995 for
selling the books through online mode. The company has expanded its business operations
massively over the past few years. Currently, company is able to sell everything from their own
brand tablets to washing power to garden tools and many more things across world (Neate,
2019). Australians have long been able to stop on Amazon.com. However, from the year 2017, it
has been found that Amazon has massively expanded its operations in the market of Australian
presence. The company effectively make use of technology that helps them to perform their
operations in effective manner.
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Current operation of Amazon
Operations of Amazon are based on their four-core principles that are drawn from the mission of
company. The mission of company is customer obsession rather than the competitor’s focus,
development a passion for invention, maintaining a promise towards the operational excellence
and emphasis on long-term thinking.
Customer obsession instead of competitors focus: - Company is innovating as well as forming
for their customer to start and work backwards. They work intensely to work the vigorously to
earn as well as keep the trust of customers. The operations of the company are linked with their
customers and they want to offer best (Layton, 2019). Although, it is essential for company to
pay attention on their competitors present in market. The company vigorously advocate and earn
trust of the customers and lead to relentless ambition to enhance experience of the customer.
A passion for invention: - In the operations of company, they foster the culture on innovation
with invention in their business. Amazon Australia remains externally aware due to which they
look towards the new ideas everywhere and this is the reason due to which they are not limited.
A commitment to operational excellence: - The company commitment towards the operations
excellence is equally prior like the customer experience. The company maintain the trust within
their company. The major operations activities that improve the quality include the digital
infrastructure, product, and services, better and improved services to the stakeholders of
company.
A focus on long-term thinking: - The long-term thinking is one of the core value cemented in
the history of Amazon from our inception. The company measures themselves on the priority

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basis in terms of the customer-centric metrics for long period that include the customer
satisfaction, degree of clients to continue with purchase from Amazon as well as strength of
brand. Amazon Australia ensures to invest for long-term and this makes them to continue refine
to enhance offering based on the feedback of customers.
Process of Amazon Australia
The initial step of Amazon is to get listing of the products on their portal for which the sellers of
company list the details of products. Amazon is an easy and effective way to reach the millions
of the potential buyers. The company provide the required tools and services to sell the products
through the online mode successfully. The company can allow the seller who wants to deal with
Amazon to sell the products in market. The seller needs the Tax information (GST Number &
PAN, depending on your category) and an active account of bank to get the seller account. Once
the seller registers, they can get the access to Seller Central for your one-stop portal for selling
products. After the registration, the seller can upload the list products through App and Seller
Central (Amazon Services, 2019). Once this process gets completed customers, can see, and buy
the products from Amazon. The seller of the company can advertise on Amazon with the
sponsored product and can target to their customers in the market.
The customers can place the orders for products that they like the most for them. On the same
time, the Amazon notifies the seller through e-mail and Seller Central Dashboard. The seller can
select for the Fulfilment by Amazon, and then they can take care of the storage, picking, packing,
as well as shipping (Lu, Li, Chen, Kim, and Serikawa, 2018). The seller can also proceed without
FBA, in which they can pick the products from you and provide it to the customer without any
excellent delivery service. Then, the seller gets the payment from company in bank account
every 7 days including your pay on delivery orders.
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Process of Buying on Amazon
The initial step of buying involves the customers to visit the Amazon website and log into their
account. The website makes the change based on the previous searcher conducted on Amazon
and products are purchased. The company offers the unique experience and personalised layout
related to their customers. Customers can “Add product to Shopping Cart” and then they can
enter the shipping and billing information. After entering all the information, the customers can
select the desire shipping option and by clicking on the final confirmation, they can complete the
order (Layton, 2019). The backend system contributes in connecting the third-party sellers and
delivers the product to customers in short period of time.
Importance of AI for Amazon Australia
Artificial Intelligence is very important for Amazon Company as it contributes in improving the
experience of customers in a contact centre where customer approaches for their issues majorly.
This improvement in customer experience makes them to visit again, which leads to
improvement in customer loyalty and ultimately results in the revenue of business (Barr and
Feigenbaum, 2014). AI is also important for automate context moderation in media; enhance the
healthcare analytics, prediction of the demand in the accurate manner and many other. AI service
from AWS makes company to use the capabilities like video analysis and image, personalised
recommendation, natural language, predicting the application without any deep expertise in field
of machine learning and virtual assistance (AWS, 2019). Amazon Company makes use of these
services to standalone in the market and allows them to use them in concert to form the
sophisticated human-like functionality. Amazon business is getting the power for their business
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with the help of fast, high quality AI tools and related technology. Some of the services that
show the importance of AI are given below -
Personalised recommendation
In the personalised recommendation, AI helps the Amazon Company by suggesting the free
recommendations by either text or pop-up. The searches related product is tracked and as per
that, suggestion approaches the users for that (Raturi, 2019). Thus, the recommendation from
Amazon to their customer makes them feel personnel connected with Amazon Australia. This
recommendation, which is done by the company, is based on the past purchases by customers.
(Source: Raturi, 2019)
Thus, company can form the high level of trust and loyalty with the customers through this way.
The revenue of company will improve which made AI important for Amazon Company.
Advance Visual Search Engine
Artificial Intelligence introduced the virtual search engine in the field of e-commerce. It is
considered as most stimulating trend that supports the user to identify what they are looking for
within the single click. Amazon Australia Company is using the technology of visual search to

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offer the other platforms with a way of visually doing shopping for the stuff. For Amazon, visual
search is very important as it provide them a new way to have the user shop (Toonen, 2019).
Now, the customers of company can take the picture of any product from the Camera search
functionality inside the App of Amazon. It reflects all relevant products that are present on
Amazon. The company was working on the AI-powered shopping platform that is known as
Scout. Later, the company announced for the new deliver robot that they use in their business
(Russell and Norvig, 2016).
Amazon uses Artificial Intelligence
Amazon Company makes use of Artificial Intelligence in their business to improve the efficiency
and effectiveness of their operations. Some of the uses of AI by company are presented below -
Amazon uses An AI Management Strategy
The approach of Amazon to AI is known as Flywheel. The flywheel technology is a deceptively
simple tool that is designed to store rotational energy. It majorly works by storing the energy
when the machine learning is not working at the constant level. The flywheel approach for
Amazon keeps them innovating humming along and encourages knowledge as well as energy to
spread it in entire working of Amazon Australia (Levy, 2018). The company act as a catalyst for
AI as well as for machine learning growth in different areas. It is because of Flywheel due to
which the company is able to expand its business operations and keeping the connection among
every operation in Australia.
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Amazon uses AI in entire office
AI is not only present at the single office of the company but it is everywhere throughout the
other departments. The three major products of AI and machine learning, which are popular in
the market, include Alexa, Amazon Go store, and Amazon recommendation engine.
Amazon Echo, which features the AI bot Alexa, has been one of the most popular forays of
Amazon Australia into the machine learning. The technology made the company realized that
Alexa could be beneficial for their products. Major skills of Alexa involve the integration of the
company’s Music, Prime Video, and Personalized recommendation for the product from the
account of Amazon (Morgan, 2018). Currently, many companies maintain the skills of Alexa
that add value to the life’s of customer like Liberty Mutual and Capital one. In this, liberty
mutual offers the insurance details and capital one permits to customer for making the payment
through their Amazon device.
Amazon also uses AI in its operations mainly through “cashier-less Amazon Go store”, the
company changed shopping trends with this technology. Amazon not only improved customer
experience but Amazon Go also helps machine learning team to implement continuous
improvement in its operations (Lu et al. 2018). Further area where amazon use AI is “Amazon’s
recommendation engine” as from this segment the company generate approximately 35% of
revenues as through using AI Company create database of customer information using individual
customer history of purchases, preferences, and frequently bought items. With help of this
database Amazon create customize product list that actually customer wants and willing to buy
so from this it can be said that AI is also used by Amazon in increasing sales for the company
(Markridakis, 2018).
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Amazon uses AI in Customer experience
The next segment where amazon use AI is for creating better experience for their customer, data
collected through AI put together to form an organized customer experience. The three pillars or
segments that used AI in Amazon coordinate with each other to improve customer experience
such as customer bought few dinner items from Amazon Go and asked Alexa for recipe and
through recommendation engine it was determined that customer want to buy sauce pan.
Therefore, these three pillars or these different divisions of Amazon coordinate with each other
and provide innovative solution to provide organized and customized customer experience
(Kepuska and Bohouta, 2018).
Further, Amazon through its machine learning and AI come a long way and after using AI to
satisfy the needs and wants of their customers, to smooth its operations and to increase its sales
now company is offering customize AI solutions to medium size and large businesses
(Kietzmann et al. 2018). Artificial intelligence shaped each aspect of Amazon and made it a
trillion dollar company because Amazon uses AI “from Echo smart speakers to its warehouses
full of products.” Amazon with its machine learning also used robots that helped in order
processing when orders came from manufacturers and distributors robots automatically put it in a
shelf this again reduces the efforts and time of employees. As amazon gets millions of orders in a
year, one or two second saved on per order make the huge difference in its operations and mainly
in the company bottom line (West et al, 2018). Amazon use machine learning and artificial
intelligence to increase efficiency and that is the key that made Amazon a leading player in the
market.

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Amazon uses AI in several ways
Artificial intelligence benefits the company in several ways and in this technological era, the
company is providing solutions that are giving competitive edge to Amazon in the market. In
fulfilment centre, Amazon also uses artificial intelligence to enhance the ability to predict
customer demand and order they will place so that at the right time and from the right place it
can be picked. It improves speed and efficiency of Amazon operations and due to that; they get
things to customer in an organized and systematic way (Suh et al, 2019). Artificial intelligence in
amazon is everywhere as the company used it in its all the area whether in warehouses,
fulfilment centers, sales, customer experience, operational areas and in each department or
divisions. Amazon with this advantage also growing its business by offering customized solution
to large businesses and with Amazon web services the company is generating more revenues
(Brynjolfsson and Mcafee, 2017). So the role of artificial intelligence and machine learning in
development of Amazon as a brand in the market is greater and tremendous and the company is
growing in the fast pace due to artificial intelligence.
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Conclusion
In the end of report, this can be concluded that Amazon operations are expanding and they rely
on the updated technology. Artificial Intelligence has changed the working of Amazon in the
Australian market. The current operations of the company are discussed which shows the process
of Amazon for seller and the process for buying the products from Amazon. In the entire
business, operation of Amazon Australia there is link with the AI technology that is adopted by
company. The importance of AI for the business has been discussed with the help of different
activities in which company use technology. This technology is essential for improving the level
of trust, loyalty, and satisfaction of the customers. The delivery of the products has been
improved with help of Artificial Intelligence for Amazon. Amazon Company has used the AI as
Management Strategy, at different locations, improvement in sales, customer experience and
many others.
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References
Amazon Services (2019) How to sell online on Amazon [Online]. Available from:
https://services.amazon.in/services/sell-on-amazon/how-it-works.html [Accessed on 20th
September 2019]
AWS (2019) Build an AI-driven application [Online]. Available from:
https://aws.amazon.com/machine-learning/ai-services/ [Accessed on 20th September 2019]
Barr, A. and Feigenbaum, E.A. eds. (2014) The handbook of artificial intelligence (Vol. 2).
Butterworth-Heinemann.
Brynjolfsson, E. and Mcafee, A. (2017) The business of artificial intelligence. Harvard Business
Review.
Kepuska, V. and Bohouta, G. (2018, January) Next-generation of virtual personal assistants
(microsoft cortana, apple siri, amazon alexa and google home). In 2018 IEEE 8th Annual
Computing and Communication Workshop and Conference (CCWC) (pp. 99-103).
Kietzmann, J., Paschen, J. and Treen, E. (2018) Artificial intelligence in advertising: How
marketers can leverage artificial intelligence along the consumer journey. Journal of Advertising
Research, 58(3), pp.263-267.
Layton, J. (2019) How Amazon Works [Online]. Available from:
https://money.howstuffworks.com/amazon.htm [Accessed on 20th September 2019]

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Lee, J., Suh, T., Roy, D. and Baucus, M. (2019) Emerging Technology and Business Model
Innovation: The Case of Artificial Intelligence. Journal of Open Innovation: Technology,
Market, and Complexity, 5(3), p.44.
Levy, S. (2018) Inside Amazon's Artificial Intelligence Flywheel [Online]. Available from:
https://www.wired.com/story/amazon-artificial-intelligence-flywheel/ [Accessed on 20th
September 2019]
Lu, H., Li, Y., Chen, M., Kim, H. and Serikawa, S. (2018) Brain intelligence: go beyond
artificial intelligence. Mobile Networks and Applications, 23(2), pp.368-375.
Lu, H., Li, Y., Chen, M., Kim, H. and Serikawa, S. (2018) Brain intelligence: go beyond
artificial intelligence. Mobile Networks and Applications, 23(2), pp.368-375.
Makridakis, S. (2017) The forthcoming Artificial Intelligence (AI) revolution: Its impact on
society and firms. Futures, 90, pp.46-60.
Morgan, B. (2018) How Amazon Has Reorganized Around Artificial Intelligence And Machine
Learning [Online]. Available from: https://www.forbes.com/sites/blakemorgan/2018/07/16/how-
amazon-has-re-organized-around-artificial-intelligence-and-machine-learning/#450690a73618
[Accessed on 20th September 2019]
Neate, S. (2019) Amazon Australia: Everything you need to know [Online]. Available from:
https://www.finder.com.au/amazon-australia#targetText=Amazon%20is%20a%20US
%2Dbased,in%201994%20selling%20books%20online.&targetText=Australians%20have
%20long%20been%20able,massively%20expand%20its%20Australian%20presence. [Accessed
on 20th September 2019]
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Raturi, G. (2019) How eCommerce companies are using AI to drive Higher Sales & User
Experience [Online]. Available from: https://becominghuman.ai/how-ecommerce-companies-
are-using-ai-to-drive-higher-sales-user-experience-20d9d9bbb2b0 [Accessed on 20th September
2019]
Russell, S.J. and Norvig, P. (2016) Artificial intelligence: a modern approach. Malaysia; Pearson
Education Limited,.
Toonen, E. (2019) Visual search: The future is now [Online]. Available from:
https://yoast.com/visual-search/ [Accessed on 20th September 2019]
West, A., Clifford, J. and Atkinson, D. (2018) " Alexa, build me a brand" An Investigation into
the impact of Artificial Intelligence on Branding. The Business & Management Review, 9(3),
pp.321-330.
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