Amazon is perhaps the largest online retailing company in the world today. How the company got there is a mix of factors, including its investment in the conversion of big data into actionable points of sale that have boosted its bottom line. In this paper, a review of how the company has used artificial intelligence and big data to boost its outcomes is done, thereby establishing how the use of statistical methods in a company can change the bottom line of a company significantly.
Amazon has produced a large number of automated features that collects information, runs algorithms and determines the best product for its customers. The company has now produced the Echo Look appliance – a device that collects user preferences on clothing and suggests clothing options that are more flattering (Markman, 2018). The device is fully fitted with style checking software, built-in lighting and a camera which is able to sense deeply, thereby equipping the individual with their own fashion designer suitable for their own wardrobe. What’s more is that the machine quickly learns the user’s preferences and determines additions that could spice up the individual’s look (Markman, 2018).
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This is the latest addition in the company’s release of self-learning products that introduces artificial intelligence into the home of its customers. Amazon brought personal digital assistants to the customers’ kitchens. The Echo Look snaps a picture of the individual, sends their picture to the cloud where data analytics is conducted on it and provides recommendations for fashion based on the current trends and features to produce what looks good on the individual. Essentially, making this idea work would mean that Amazon provides a personal stylist to every customer. It also means that Amazon will be at the helm of control for the fast fashion industry.
To understand the meaning of this statement, it is important to notice that the fashion industry was estimated to have grown to $62.82 billion in 2017. Further growth is expected in the industry so that it will be worth over $90 billion in 2020. By adding this feature into the Amazon catalogue, the company will be able to push current runway trends within its online stores as they are released. Trendy fashion items will attract multiple repeat customers, thereby potentially upscaling Amazon’s bottom line exponentially.
Furthermore, this application addresses the hit and miss nature of buying clothes online. Customers buying clothes online need to know if they fit, how they feel and if they look good in these clothes. The Echo Look application brings this feature to the customer because the application knows information about you, most especially one’s size and apparel preferences. As a result, Amazon makes it easier for people to buy things online – this time having tapped into the fashion and apparel industry.
Therefore, Amazon is now using big data collected from its customers to provide recommendations via statistical analysis. Artificial intelligence and user data offered online becomes useful in providing customers with customer-centered services that eventually impact the company’s returns. The company has, therefore, sufficiently monetized the data collection process so that it works to their advantage. Even then, the company still faces the challenge of perfecting the model. Nevertheless, the brilliance of data analysis methods to provide new spheres of influence in online apparel sales is undeniable.
References
Markman, J. (2018). Amazon Using AI, Big Data To Accelerate Profits . Retrieved from Forbes: https://www.forbes.com/sites/jonmarkman/2017/06/05/amazon-using-ai-big-data-to-accelerate-profits/#6d969ae36d55
