Analyzing AI's Impact on E-commerce: A Case Study of Amazon Australia

This report examines the use of artificial intelligence (AI) within Amazon Australia's e-commerce operations, highlighting its significance in enhancing sales, marketing, and customer service through the implementation of chat bots and other AI-driven systems. It details Amazon Australia's current operations, emphasizing its role as a direct buyer-to-seller online retailer offering a wide range of products and focusing on customer experience. The report underscores the importance of AI for business survival, particularly in customer relationship management, sales goal achievement, and automation, facilitated by technologies like the Flywheel AI system. It further explains how Amazon Australia utilizes AI to improve sales performance, customer interaction via chat bots, and overall efficiency, contributing to its success as a leading e-commerce platform in Australia. Desklib provides students with access to a variety of study tools, including past papers and solved assignments.

Running head: USE OF AI IN AMAZON
ARTICIAL INTELLIGENCE IN AMAZON
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1USE OF AI IN AMAZON
EXECUTIVE SUMMARY
The amazon is considered to be one of the most leading e-commerce companies in the world and
it has also significant amount of progress in the Australia. The Amazon uses various kinds of
artificial intelligence technologies which benefits the company in various aspects such as sales,
marketing and implementation of chat bots. The artificial intelligence and its various uses by the
amazon Australia is highlighted in the below report.

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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................4
Current operations of the selected E-commerce store.................................................................4
Why artificial intelligence is important for the business survival...............................................5
How amazon Australia uses artificial intelligence......................................................................8
Recommendations..........................................................................................................................11
Conclusion.....................................................................................................................................11
Appendix........................................................................................................................................13
References......................................................................................................................................17

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Introduction
The e-commerce business is the most preferred and adapted business forms in the modern
world. Almost every industry is adapting the e-commerce business strategies and e-commerce is
one of the most valued and used trading methods. The report emphasizes on the Amazon
Australia business which is based on the e-commerce platform and its various operations are also
described. The artificial intelligence also plays an important role in e-commerce businesses as
the e-commerce demands various application of artificial intelligence such as chat bots and other
support systems to interact with the customers and give them proper support. The use of artificial
intelligence is increasing in the global e-commerce websites and thus the Amazon Australia also
have some significant applications of the artificial intelligence. The Amazon is one of the leading
e-commerce websites over the globe and it has a significant expansion in Australia as well
(Amazon 2015). The artificial intelligence that is used in the Amazon is the named as Flywheel
and the various services of the Amazon depends on this artificial intelligence system. The
operations of the amazon in Australia is also based on the flywheel artificial intelligence and it
acts as an effective tool in dealing with the customers and their problems and issues in the e-
commerce business platform. The amazon in Australia is also famous for the e-commerce
business establishments and also the stores it handles. The e-commerce has certain benefits such
as ease of use to the customers, accurate descriptions of the products and also clear policies and
secure payment gateways (Kantor and Streitfeld 2015). The customers nowadays are more
focused on the e-commerce business due to the ease of use it offers and also due to attractive
discounts it offers to the customers. The report thus states the amazon e-commerce websites
operation and how artificial intelligence is used in the organization.

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Discussion
Current operations of the selected E-commerce store
The selected store for the report is Amazon Australia and the current operations of the
amazon is described as well as its operations in the stores situated in Australia. The amazon
being a global leader in the e-commerce business has its own operational structure and strategies
by which it controls it global services and also the services in Australia. The amazon is a direct
buyer-to-seller online retailer which sells various kinds of products in its online website all over
the globe. The products include electronic goods, cosmetics, furniture, bedding supplies and
almost every commodity required by the customers. The amazon also focuses on the buyer
experience and satisfaction as it helps in retaining and attracting more customer towards their e-
commerce website. The website is also referred as an online store as because it acts a dependable
store providing every kind of products (Bennett and Hauser 2013). The amazon also provides a
multi-leveled marketing and e-commerce strategy which enables sellers all over the world to sell
anything to the customers. The store was initially launched as an online books store but gradually
developed to sell almost every product available in a global basis. The operational hierarchy of
the e-commerce website amazon is very much stable and precise which allows it to control its
operation all over the globe. Thus the amazon Australia was established as a small initiative as
an online book store but it is now the supplier of almost every commodities and it also has
implemented significant artificial intelligence technologies in its infrastructures.
The amazon Australia selected here has similar operational structure as the global
amazon store however there are certain exceptions to it. The amazon Australia website during its
initial launch days only offered the customers of Australia with books and applications unlike the
others products such as video games and other technological products. The amazon has also

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opened its control and operating hub in the city of Melbourne which is well linked with the
highways and it will also act as a distribution center for the products purchased by the customers
in Australia. However, the operational headquarter of the amazon Australia is situated in Sydney
and eventually the company will also launch the local stores (Kantor and Streitfeld 2015). The
amazon being one of the global leaders in the e-commerce industries needs and has certain
deployment models which comprises the use of artificial intelligence and other modern
technologies which makes the company deal with their customers in an effective way and also in
earning huge amounts of profit. The amazon Australia will benefit the local small and medium
scale businesses as because the businesses will have the opportunity to expand their business by
selling their goods on the e-commerce website. The amazon Australia after its successful
implementation of stores and warehouses in the country, resulted in a profit of $68 million and
established itself as a leading e-commerce website of the country. Thus the amazon Australia has
developed itself as a leading e-commerce business in Australia as well and has progressed its
infrastructure to support the various selling and buying activities within the company
infrastructure.
Why artificial intelligence is important for the business survival
The use of artificial intelligence is increasing day by day in the modern e-commerce
businesses and it is also helping the e-commerce businesses to interact more efficiently with the
customers and thus also enhance their performance. The artificial intelligence system in the e-
commerce is important as because it provides the real rime information of the customers to the
company officials and thus they can enhance the service (Russell and Norvig 2016). The most
significant part of the artificial intelligence applications that affect the e-commerce is the use of
chat bots which is of tremendous importance as because it deals with the problems of the

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customers and supports them automatically. The chat bots are used in the amazon website to
process the requests and complaints of the customers and also it provides with various solutions
to the problems by analyzing the situation. The customer relationship management (CRM) is also
controlled by the artificial intelligence system in the e-commerce businesses and it also helps in
predicting the future buying decisions of the customers. The use of AI in this field thus relieves
the sales representatives from analyzing the sales data and earns the e-commerce businesses
profit. The AI is also used in achieving the sales goals by predicting certain criteria which
ultimately helps the businesses to grow and earn profit. The e-commerce businesses also depends
a lot on the automation technologies and artificial intelligence plays a vital role in the
development of such technologies (Nilsson 2014). The modern e-commerce business are
depended on the automation of the sales department and thus helps in connecting better with the
customers. The automation and other departments within the organization amazon is controlled
by the artificial intelligence and machine learning background technologies which makes the
model more predictive and accurate in terms of providing the customers of amazon with a better
satisfaction and service (Vanneschi, Horn, Castelli and Popovič 2018). The survival of the
business generally depends on the profitability and customer satisfaction and feedbacks in terms
of the services that are provided by them and thus the use of the artificial intelligence and other
similar technologies helps in the survival process of the business (Mitchell, Michalski and
Carbonell 2013). If the proposed techniques of the artificial intelligence is applied to the
company amazon properly, then the customer management, satisfaction and profitability of the
company increases which in terms increases their brand value.
Importance of artificial intelligence:

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The artificial intelligence supports the finance analytics of a company or business as
because the monetary results can be related to the decisions that are to be taken in improving the
business performance and profit. The artificial intelligence has the ability to understand the in-
depth calculations of the financial activities of a business and thus it replaces the human effort to
calculate the finance which is sometimes faulty as well. The artificial intelligence also helps in
the market research and trend prediction of a company as the data of the customers are analyzed
and an effective marketing strategy can be predicted by the AI models in the businesses (Dirican
2015). The trend prediction is also triggered by the artificial intelligence and the most logical
solutions are predicted and forwarded to the customers. Planning is an important part in the
operational strategy of an e-commerce business and thus AI also helps in the future business
planning. The artificial intelligence software helps the businesses to predict the future marketing
and sales planning based upon the past customer feedbacks and thus gives the company an
accurate predictive model, which implemented in the proper manner can enhance the growth of
the business and earn profit to it as well.
The survival of the e-commerce business is also depended on the modern artificial
technologies and various departments and structures of the businesses are connected and
supported by the use of AI. The amazon also depends a lot on these advanced artificial
intelligence technologies and its performance and profit is heavily affected by such technologies
(Brynjolfsson and Mcafee 2017). For the survival and enhancement of the business amazon uses
the artificial intelligence systems which is known as flywheel which deals with the various
machine learning aspects to predict the customer choices and also developing the modern
products. The businesses involving the artificial intelligence in the company amazon must be
developed and updated in order to successfully implementing the various applications of it. The

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application of AI in the company also helps in the development of the particular models which
benefits the customers as well as the business. The survival of the e-commerce businesses is thus
depended upon the artificial intelligence applications and models (Ghahramani 2015). The
amazon flywheel is such a tool of AI which is used by the company to offer its services. The
amazon is a global brand and it deals with suppliers and customers all over the world and thus
the implementation of the artificial intelligence of amazon is very much needed and also to
predict the customer’s feedbacks and needs the AI system needs to be flexible. Thus the use of
AI in the amazon e-commerce business is very much needed for the fulfillment and enhancement
of the business processes of the company.
How amazon Australia uses artificial intelligence
The artificial intelligence is used by Amazon Australia to enhance its sales and
performance throughout the country and also to expand its products to various other ranges. The
artificial intelligence is considered to be one of the most advanced technologies and it is
associated with almost every e-commerce businesses (Ransbotham et al. 2018).The application
of artificial intelligence in the e-commerce business can be described by the following
applications –
Use of AI in chat bots: The chat bots are an effective method of interacting with the customers
of the e-commerce company and knowing their concerns and problems with the various products
and services of the company. The fact that online e-commerce business deals with the various
customers and each of them has different issues and problems, the chat bots effectively deals
with those problems and suggest the customers with appropriate solutions. The chat bots also
provide support to the customers irrespective of the time zone and provides them with solution
over the company website. Thus the use of artificial intelligence is best justified in the

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development and deployment of the chat bot systems (Zamora 2017). The amazon also has
significant chat bots which uses artificial intelligence of amazon known as the flywheel and thus
it interacts and suggests their customers with effective and profitable services and products with
the use of chat bots and artificial intelligence in them.
Artificial intelligence in CRM: The customer relationship management is essential for the e-
commerce industries as the process involves the collection and analysis of data in order to satisfy
the customers and the clients. The AI in CRM helps in predicting the buying decisions of the
customers and thus the e-commerce website can suggest them with such products and services.
The CRM also helps in the retaining the old customers and also attracts the new customers by
accurately predicting their areas of choice and providing them with appropriate services. The
amazon flywheel thus satisfies the customers and also helps in building long-lasting relations
with the customers.
Artificial intelligence in sales growth: The artificial intelligence can also be used in increasing
the sales of the e-commerce as the AI helps the businesses to find prospective customers and the
resources of the company is also effectively managed and examining the team performance is
also an important aspect in terms of the sales growth. The amazon focuses on the growth of their
sales with the help of the AI as because the technology can accurately and precisely monitor and
control the entire sales transaction of the company without any human intervention (Siau and
Yang 2017). Thus the amazon is more focused and based on the artificial intelligence
technologies which increases their sales. The amazon also uses significant AI and machine
learning to improve the sales performance of the businesses.

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AI in enhancing customer service: The use of AI in increasing the customer service is the
most common use of it and it also helps the e-commerce businesses to increase satisfaction of the
customers with perfection. The customer satisfaction is the most important aspect in the business
to customer models such as the amazon, and thus the customer service and satisfaction acts as
the key role in the business. The application of the artificial intelligence in such businesses
increase the satisfaction of the customers and also reduces the human effort in the businesses
(Martínez-López and Casillas 2013). Various other automated services and technologies are also
triggered by the artificial intelligence. The AI systems in the e-commerce responses to the needs
and problems of the customers all round the clock and during this operations the machine
learning is also used along with the AI. Thus the customer service of the amazon e-commerce is
also supported by the artificial intelligence.
Automation and AI: The automation of the various processes and services are essential for the
e-commerce business and thus the artificial intelligence in amazon helps in the automation of the
various services provided to the customers. The representatives of the company can also connect
to the customers in a better way by applying the artificial intelligence and thus it saves time for
the business officials and enhances their performance and profit (Segovia, Szczepaniak and
Niedzwiedzinski 2013). The automation of the various services and support systems within the
company infrastructure is being developed using the artificial technology process and thus this
automation of the departments are helping the entire organization to develop as a whole.
Amazon flywheel: The amazon uses an artificial intelligence model known as the flywheel
which acts as an efficient energy management tool. The amazon believes that artificial
intelligence is not only limited to one amazon office rather, it is situated in every aspect of the
business strategies. The company amazon also uses machine learning concepts along with the

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artificial intelligence models and it ensures that the customers of amazon has adequate amount of
satisfaction from the services provided by amazon (Yang, Ren, Han and Yin 2013). The flywheel
also controls the entire operational structure of the company amazon and also its chat bot and
other support systems. The company has also some significant tools and products in which the
artificial intelligence is used.
Recommendations
The artificial intelligence is an evolving technology in the modern information
technology field. The e-commerce business can be benefitted by the application of the artificial
intelligence. The AI in amazon has certainly benefitted the organization and various models and
support systems has been applied by the company. However, the company should adopt more
use of the AI and develop more customer support systems. The use of internet of things in the
amazon should also be increased so that more enhanced support systems can be developed. The
internet technologies can improve the services and delivery system of the amazon company and
eventually it would earn better performance and profit for the company. The business to
customer model of the e-commerce should adapt the new technologies like artificial intelligence
to enhance their growth and performance as because .Thus the artificial intelligence along with
the various other internet technologies helps in the development of the customer satisfaction and
other profitable models for the company amazon. The amazon being the global leader in the e-
commerce business has certain deployment models and it is also adapting more new technologies
in order to enhance its services and products.