E-Business Report: Amazon Australia's E-Business and AI Impact

This report provides an in-depth analysis of Amazon Australia's E-business operations, focusing on the integration and importance of Artificial Intelligence (AI). It explores the company's operational functions, including delivery preferences, push/pull strategies, warehouse organization, and automation. The report examines the critical role of AI in various aspects of Amazon Australia's business, such as chatbots, data handling, inventory management, cybersecurity, and decision-making processes. It also reviews the company's performance, the impact of its Prime membership, and its competitive standing in the Australian market. Furthermore, the report highlights the importance of AI for Amazon Australia's survival and future growth, drawing on recent research to support its findings. The report also provides recommendations for improving business processes within the company.

Running Head: E-Business 0
E-Business
September 23
2019

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Table of Contents
Introduction......................................................................................................................................2
Operational Function of Amazon Australia.....................................................................................3
Delivery Preference.....................................................................................................................3
Push/Pull Strategy........................................................................................................................3
Classes and Zone.........................................................................................................................4
Automation..................................................................................................................................4
Supply chain cost.........................................................................................................................4
Manufacturing..............................................................................................................................4
Importance of AI for Amazon Australia..........................................................................................4
Use of Artificial Intelligence...........................................................................................................5
Review on Amazon Australia..........................................................................................................6
Recommendation.............................................................................................................................7
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

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Introduction
This report is based upon E-business which is also known as an online business where the
business process is conducted through internet. In E-business selling of good, purchasing,
supplies, services, payment processing, production control, and management, etc. are included.
The main aim of the report is understanding the function of E-business by selecting an E-
commerce company. In this report Amazon Australia is selected for understanding the functions
and importance of E-business included with the general introduction of Amazon Australia. The
report is also prepared to explain about artificial intelligence. There are various applications are
introduced by the artificial intelligence which is developed to support the business process of an
E-commerce company in which chat support, customer relationship, improvement in sales,
decision making cybersecurity, management of inventory, customer data handling are included.
The importance of Artificial intelligence in the development of E-business will be also explained
in the report. The role of Artificial intelligence for the support in expanding the business of
Amazon Australia will be explained in the report. In order to develop and make changes in the
business process recommendation will be explained in the report for the chosen company.
Operational Function of Amazon Australia
Amazon Australia was launched in November 2017 and it comes under the Oceania region
categorized by Amazon. It is expected that the company will be able to consume $12 billion
from the Australian retail market. Rather on focusing competitors company is mainly focused on
the customer obsession, excellence in operation, longer-term thinking and passion for the
invention. Since March 2017 Amazon Australia reported for the building the logistics centers as
well as distribution capacity in Australia (Smith, and Friedman, 2019). In the entire operation of
Amazon Australia business the prime subscription plays critical role in where customer has to
spend more money which provides them a platform or an identity of being loyal towards
company and their services. The supply chain management of Amazon Australia which is quick
and efficient is crucial reason to become the favorite platform for customers. The commitment
of One day, two-day delivery and One-hour delivery strategy for delivering products attract the
customer for choosing the services. The company is using very sophisticated information
technology for controlling the network of warehouses (Tou, Watanabe, Moriya, Vurpillat, and

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Neittaanmäki, 2019). It helps the company for the inventory management and transportation
system due to which the supply chain of the Amazon is most efficient among other companies.
The supply chain completely depends upon outsourcing in the management of inventory when
the product. When the product is not purchased or not stored in the fulfillment center is major
challenge and the company is maintaining its 82% of the total sale from a third-party seller (Tan,
Pan, and Zuo, 2019).
Delivery Preference: Amazon has its own logistic service due to which the company is
providing the commitment of same-day delivery or one-hour delivery. Due to dynamic supply
chain management Amazon Australia is able to provide preferences in delivery options. In
Australia because of the traditional competitors compared to other subsidiaries facing challenge
but the company is making continuous efforts so that the order get deliver faster and can attract
the customer with achieving their trust (Sipior, Lombardi, and Gabryelczyk, 2019).
Push/Pull Strategy: The warehouse of the Amazon Australia is established in which proper
strategies were followed i.e. moving closer to the metropolitan area (Bakhtiari, 2019). In this
push, the strategy is used to store the product the in warehouse while if the product is related to
third-party seller then by the pull strategy is used for selling the product.
Classes and Zone: Amazon has divided its warehouses is categorized into five different
storage areas. The prime storage is used to keep the magazines and books; the other section of
prime pallet is used for storing the product which is in high demand. In the third level of prime
storage stores products which are in high demand but in less than case quantities. In the next
section products which are less in demand stored, in the last section the modern demand and
small items are stored.
Automation: For controlling and managing the inventory Amazon implemented Automation
which reduces time and costs of the company. Instead of having large facilities Amazon
Australia is capable to deliver the order faster and efficient with the help of Automation.
Supply chain cost: Amazon has maintained the overall per unit supply cost at a minimum level
which is difficult for the traditional companies already conducting their business in Australia
(Tou, Watanabe, Moriya, Naveed, Vurpillat, and Neittaanmäki, 2019).

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Manufacturing
Somehow Amazon understands that third party is sold to the customer they can be produced at
lower prices. Amazon is dealing the selling of products in huge number so when these products
are manufactured by Amazon helping it to save additional costs. With the help of manufacturing
the financial state of the company is getting stronger as well as it is providing support to stand
Amazon in the traditional market of Australia (Kauai, CORTE, Cysneiros, Pelissari, and
Sanquetta, 2019).
Importance of AI for Amazon Australia
The technology of Artificial Intelligence is implemented and used in almost every sector.
Artificial intelligence is now days embedded in the life of every individual, for Amazon and
other e-business organization are able to conduct their operation flawless. In Australia Amazon is
facing challenges to established but instead of that company is achieving its goals due to
implementation of Artificial intelligence in the business organization. With the help of this
technology, Amazon can access the information or data in real-time due to which efficiency can
be maintained in the company. By the help of Artificial Intelligence company was able to launch
its product Alexa which can be controlled by voice of user (Althafairi, Alhoumaida, Saxena, and
Almsri, 2019). It can perform different functions. In very short period of time the product creates
an impact on the company for catching the attention of customer. The company is able to provide
the attractive offers by examining the order history and preference of the product purchasing for
their customers it develops a positive impact on the customers as well as customer also remain
satisfied. Amazon Australia was able to reduce the communication gap between the employees
and their customers by using Artificial intelligence (Wahlström, 2019). One of the major
advantages which are gained by the company is that it also reduces cost of the company, multiple
tasks are conducted by this technology at single time it helps to save the cost of workers and also
the efficiency is not compromised. The company is facing great competition from other retail
companies which already established in Australia but with the advanced technology and proper
management Amazon Australia was successful to remain dominating in the retail market. The
strategy of click and collect by Amazon changes the complete environment of the market. It is
not only creating an impact on the customers but also sellers which are connected with the
company (Torre, Polge, and Wallet, 2019).

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Use of Artificial Intelligence
Amazon Australia is using Artificial intelligence in their business process for controlling
different functions. It is helping the company to remain stand within the extreme competition.
The applications of Artificial intelligence which are used by the company are defined below:
 Chat Bot: Company has to maintain the customer support to develop the relationships in
the new location and for earning trust Amazon has to provide their best services to their
customers. Amazon is helping its customer by providing 24/7 support where the concern
of the customer is resolved in real-time. The chatbots asked the requirement from the
customer and on the basis of the selected option the resolution is delivered, it not only
reduces the company workforce but as well as save time of customer. These chatbots are
designed by using artificial intelligence for communication with human. With the help of
ChatBots Company can also access past data of customer as well as provide personalized
experience (Kumar, Rajan, Venkatesan, and Lecinski, 2019).
 Data Handling: Amazon Australia has to deal with the huge list of data due to different
and huge number of products. In the data handling daily sales, the number of product
sold, total order received in a day, etc. are included these tasks are not easy to handle by
human. Artificial intelligence is playing critical role in the management of data in proper
structure as well as it is helping the company to understand the purchasing pattern or
trend of customer associated with their bought products (Farrow, 2019).
 Inventory Management: Amazon Australia is maintaining a large warehouse in
Melbourne and another warehouse will be starting its function in Sydney. For every E-
commerce company it is very essential to manage their inventory. Amazon Australia is
much efficient and faster than other companies because of Artificial Intelligence (Saha,
Alam, and Dey, 2019). There are thousands of products and to keep an eye on them daily
for a human is not easy so to remain updated with the availability of product Amazon is
using artificial intelligence.
 Cybersecurity: There are lots of transactions done on the platform of Amazon on the
daily basis to protect the server from cybercriminals and Hackers; Company is using the
application of cybersecurity to stop the unauthorized access (Lotz, 2019). If the data or
information are accessed by the unauthorized person then rapport of the company will
affected as well as all the private data of company will be compromised due to which

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company will face huge loss. To avoid these issues company is using artificial
intelligence.
 Decision Making: Data analysts of Amazon have to handle huge data daily and according
to the sale of the company the quantity of data is huge to handle. After the
implementation of artificial intelligence the decision making capability for Amazon and
their data analysts become easy and comfortable (Weber, and Schütte, 2019).
Review on Amazon Australia
According to the research conducted by the global media and mindshare which is a marketing
company Amazon and the Australian omnichannel as well as retailers changed their offerings
due to which the customers are getting shift towards domestic e-commerce sites rather than buy
product from any overseas company. However, it is observed that every year the visit on amazon
is increasing by 24% with a rise of 8.3%. Its impact can be observed on the local brands in which
catch group, kogan.com, Kmart, Dan Murphys, Rebel Sports, etc. are included (Shank, and Gott,
2019). The market leader of Australia eBay also loses the traffic which is decreasing by 0.3% per
year. With the launch of Amazon in Australia the online shopping is rising but all the available
brands are not getting any boost as expected. If compared to the price of Amazon prime
membership it's less than other regions. In Australia the charges which are decided by the
company is $59 per year; there is some disappointment from the customers are examined for
Amazon despite this the access of the site is increasing every year. In the country the main
strategy which plays the critical role for Amazon is their Prime membership plan, in which the
company is providing the commitment for two-day delivery (Kumar, Rajan, Venkatesan, and
Lecinski, 2019). This plan was not only reason to attract the customers but the brands get the
encouragement to start business with Amazon. Every customer preferred to receive their order as
soon as possible from the day of delivery so according to the research the prime delivery is one
of the advantages achieved by the company because the customers are ready to spend extra
money for taking the prime service. For the extension of reach the small business or retailers can
gain assistance from Amazon. They can get benefit by delivering their products and services
through Amazon across the globe. Company is providing the logistic services which are not easy
to achieve or can maintain by the small business. Amazon is the company which cannot be
ignored it does not matter if the competitor company has a small business or large (Donahoe, and

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Metzger, 2019). The policies which are proposed for the seller to get merge with the Amazon
developing excitement for small business of Australia. The company is providing the
commitment for the security of their product as well as their income. Amazon is not charging
any fees based upon percentage to seller for selling their goods.
Recommendation
The e-commerce market of the Amazon Australia is very strong according to a study it was
observed that in the sale of 2017 the transaction of $ 32 Billion was completed. Australia is
placed in the top-ten list of e-commerce market. For Amazon Australia is favorable and can
become the source of good revenue generation. The e-commerce market in Australia is growing
rapidly with time. Company has a wide range of product linked with the different multinational
brands. The company should focus on the population of Australia which preferred online
shopping by providing different offers because 65% population of Australia is doing online
shopping right now. In case if the company able to achieve the 20% e-commerce market of
Australia they will be able to generate approximately $6 billion which is just 5% less than their
expected revenue (Bradford, and Murphy, 2019). The company should also focus on attracting
the local and traditional retailers of Australia with them so the people who prefer the domestic
services they will also have to use the service of Amazon. Company has the advantage from the
aspect of technology and other resources like logistic services, Inventory management, human
work power, etc. which can help company to provide the service across the region in efficient
and faster. Although the company is providing the two-day delivery as of now in Australia
including with this they can also provide book and collect service in which the customer can
place the order and can collect from the store associated with Amazon. Drone delivery system
will be also an effective strategy for attracting the customers (Contreras, Ballari, De Bruin, and
Samaniego, 2019).
Conclusion
The report concludes about the E-business and its application, it is one of the most rapid-growing
business in present time. In the report with the help of Amazon the services of E-commerce is
explained. The report includes information about the arrival of Amazon in Australia the
challenges which they are facing in the country and the strategy which they are using. In the

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report the operational function of the Amazon Australia is explained which includes the supply
chain management of the company. With the help of this report it can be understood that the
major benefit which is achieved by the company in Australia and other region is their delivery
system and efficiency with their services. It is concluded that because company is using the
advanced technology in their business process i.e. Artificial intelligence to manage the functions.
Artificial intelligence is providing huge support to the company for managing their data or
information along with its security. The importance and role of Artificial intelligence are
explained in the report which also includes the applications. In the report with the help of a
journal article based upon the Amazon Australia peer review is conducted. In order to develop
and to expand after performing research recommendations are also provided to the company for
improving their services.

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not just because they’re large. The Conversation, (24).

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