5 ways Amazon and Alibaba use AI and data mining to increase sales

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Implementing a marketing mechanism that generates, leads and brings in sales is the biggest challenge e-commerce businesses face. They are doing something exceptional. Amazon and Alibaba invest heavily in research and development. Amazon spent $42.7 Billion Dollars in 2020 on technology and content. Alibaba T-mall innovation center started mining the data of over 600 million users from its team all b2c e-commerce marketplace in 2017. The artificial intelligence of these two e-commerce multinationals cannot be overemphasized. Here are the 5 ways Amazon and Alibaba use Artificial Intelligence and data mining to increase e-commerce sales.


Product Recommendation:

Alibaba and Amazon both use Artificial Intelligence and datamining to do effective product recommendations for consumers. Alibaba has developed a software called e-commerce brain which uses real time online data to predict consumer wants and the models are constantly updated for each individual through Artificial Intelligence to take into account, purchase history, browsing history and online activities.


Customer Shopping Time:

They use AI to shorten consumer shopping time. AI technology such as voice and visual search are growing powerfully and most e-commerce giants are making good use of it to shorten consumer shopping time. The fact that voice search and other sophisticated technologies can predict buyer intent is simply fascinating and that is why they keep acquiring more customers every day.


Smarter Pricing:

Alibaba and Amazon don’t do all that much in pricing and that’s quite logical. If you are a small e-commerce owner. Then you know right pricing wins the heart of consumers. With AI and Data Mining, they compare prices of all products and come up with the best price among all.


Manage Supply Chain:

They use technology to predict the logistics, delivery date, the stock levels per purchase. Amazon even uses drones for quick delivery. Alibaba is equally exploring the development of a smart supply chain in China through its Ali Smart Supply Chain platform.


Build Brand Loyalty

They use AI and Data Mining to build brand loyalty with consumers. The power of AI and related technologies like Big Data and Blockchain and Machine Learning cannot be overemphasized these days. A combination of a seamless buyer’s journey, consumer intent prediction, best pricing and attractive UI/UX gives Amazon, Alibaba as well as other e-commerce giants an edge over others.

E-commerce giants like Amazon and Alibaba have always been driven by innovation. It will be quite exciting to what more they can do in the e-commerce market. 


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