00:00All right, so this is the second one in the series of AI in real world and today we are
00:19targeting the elephant in the room, e-commerce, e-commerce was the first industry to get affected
00:28hugely by AI. The real world implementation of AI in e-commerce was probably the very
00:36initial thing which happened for transforming it as an industry as a whole. So if we talk
00:43about AI in e-commerce, it is going to make sure that by next year, 40% of the e-commerce
00:51will be using AI just and just for customer service. Forget about everything else, there
00:57are a lot of other aspects and perspectives. We are just talking about customer service
01:02and more than 40% of all the e-commerce will be using AI just and just for customer service.
01:10Now talking about other aspects, customer retention, the data analytics to promote purchases
01:18that are all next, search engines of e-commerce, that all comes next. If you practically see,
01:26Amazon itself has increased customer retention by 35%. Etsy has made sure that they recommend
01:35perfect products to the customer with AI. So today we are going to talk about real world
01:41examples of AI in e-commerce and we are going to talk about Amazon, we are going to talk
01:48about Etsy and we are also going to talk about eBay. eBay is like what you say. So let's
01:55talk about AI in real world with analysis of all three giants in e-commerce. So let's
02:02start with Amazon. Amazon has used AI at a very large extent. Although you see a very
02:08simple website in the front end which is very plain and like it was way back earlier, the
02:13back end is full and full of AI. You talk about the recommendations, you talk about
02:19the searches, you talk about the warehousing, everything on Amazon is dependent on AI. So
02:26Amazon uses AI to recommend you products which you are most likely to buy. And how that works?
02:34That works on analysis of the data which Amazon has from so many years. So they have analysed
02:40all the data, they have created the model and based on your shopping preferences and
02:46other similar buyers in your criteria, that is going to suggest you more and more products.
02:51And that has of course increased a lot of purchase rate on Amazon. Now talking about
02:57something in the back end, you know. So based on the season, the geographical location,
03:05the market trend, Amazon has planned its whole warehousing system with AI. So what happens
03:12is that they can manage the stocks easily. It would never happen on Amazon that you know
03:17you order a particular item and it's going to get delayed unexpectedly. No, because they
03:23know with the power of AI that this is the season when they'll need most of this category
03:29of items. So they never miss a chance in the whole year to supply you the items which you
03:36actually need. And that is not just based on the weather or the geographical location.
03:40That is also based on the trends on TikTok or Instagram. So they understand that this
03:45chopper which you always see on Instagram or on TikTok is something which is going to get
03:53sold and they make sure that they stock it, they warehouse it, they arrange it in the right way
03:58based on how the trends are working. And of course, Amazon uses chatbots to answer your queries.
04:05The biggest power of Amazon, if you see in terms of AI, in the front is Alexa. See how
04:12smartly Alexa answers your questions, add products to the cart, purchase it and complete the whole
04:19process. The whole mechanism, there is AI. Now talking about further back and forth. Take an
04:27example that there is an Amazon delivery guy who is out for delivery. He has like probably 300
04:32packages in his truck. Amazon uses AI to make sure that the routes are set in the right way
04:38so that the delivery time is reduced and a single person can deliver maximum items in a single day.
04:45So that's the power of AI which Amazon uses. Now out of this, which one do you like? Which is the
04:54idea which you love or which you would love to implement in your e-commerce platform? Or if you
05:00are not an e-commerce owner, as a customer, which idea would you like to get to see in many other
05:07e-commerce platforms? Write down in the comment section and let us know what AI in e-commerce you
05:13would prefer. So let's move to the next one, Etsy. Etsy has been a pioneer in implementing AI and
05:22it's pioneering the handcrafted goods. So it uses AI more for product discovery. So when you go to
05:30Etsy and you start searching, it's not just randomly showing you the stuffs. It's actually AI which has been
05:36used there to suggest you the products, discover items for you which is more likely for you to get
05:42purchased. So not just that, Etsy has very smartly implemented AI for the sellers. Now based on the
05:51type of the products, they are going to suggest them more items to publish on Etsy. The machine
05:57learning at Etsy practically does all the back-end work. You know to suggest the items to the seller
06:03as well to find the perfect items for them to upload, to design the items. That is how Etsy has
06:09become probably the Amazon of handcrafted goods. There are no other major competitors to Etsy
06:15because the power of AI is in the back-end. Suggesting customers the right thing, suggesting
06:21sellers to design the right thing. And with all the small sellers selling on Etsy, one of the most
06:27important thing is fraud detection. Have you ever thought AI can be used for fraud detection and
06:33that's what Etsy is doing at the moment. Based on the customers or the viewers behavior pattern,
06:39based on the type of details they are searching, based on the type of data they are entering. Etsy's
06:45algorithm can define that whether this user who is searching at the moment is a fraud user or not.
06:51So that has helped them to reduce down a lot and lot of fraud transactions. And you know you might
07:00surely know that how this fraud transactions would affect Etsy as a company as well as the
07:06seller. Because you get a COD return, right? So you have shipped the item, it has went to a place
07:11and then it gets returned. So there are many losses. One, loss of opportunity for the seller.
07:18How? Because the item is right now out of stock for the seller, right? So it has went to the other
07:24place. It is out of stock. So if someone else wants to buy, they can't buy it. The logistics
07:29cost because the item is going somewhere, it is coming back. And it's going to cost to Etsy and
07:34the seller both. So Etsy has made sure that they have raised their fraud detection algorithm very
07:41very fast and make sure that they prevent fraud detections as much as they can with the use of AI.
07:47For the seller, Etsy uses very high power AI in suggesting them the type of changes they want to
07:55make in their profile, in their products, in the listing, in the content, everywhere. Right? So
08:00right now you might be seeing as if you are an Amazon seller, you might be seeing the facility
08:05for the users when they are uploading the product. Amazon would suggest that would you like us to
08:10write down the descriptions and thought descriptions and product point? That's what Etsy is doing long
08:15back. Right? So this might not be available in all part of the world, right? But Etsy have been doing
08:22it by suggesting them optimizing images, optimizing the content for better search result visibility,
08:28optimizing the content for third-party search engines to make sure that products are listed
08:33good. So Etsy acts on all the parts. Fraud detection, suggesting it to the customer and
08:39better marketing tools for the sellers. Which one do you like out of these three? I always think
08:45about the facilities in Amazon, Etsy and eBay. Practically, write down in the comment section
08:52which is the more practical implementation of AI for you. Moving to the third elephant in the room,
08:58eBay. So eBay is pioneering retailing and eBay has used AI at its core. So let's talk about what
09:08they are doing with the sellers. For sellers, it becomes really easy to upload products on eBay. How?
09:14By uploading just the image, the AI engine of eBay will automatically recognize the type of product
09:22it is, the category it is, the tag it requires and the process of product upload becomes really
09:29seamless and that process is with AI and image recognization. Now not just that,
09:37eBay uses the AI algorithm, AI model to suggest pricing to the sellers. Can you believe that?
09:44So you upload a product and based on the fast purchases, eBay is going to suggest you that okay
09:51mate, you should give this price of this product which is more likely to be purchased by the sellers
09:58and of course eBay has also used very smart chatbots to handle customer queries and
10:04have reduced the turnaround time and query resolution by 30% using AI. So eBay is all
10:12about implementing AI in the front end and the back end like Etsy, right? Having said so,
10:19eBay has also increased sales by 15% and you know when you talk about 15% that might not be
10:27very large number for you but consider eBay as a company and the million dollars transactions
10:33they are doing every single day and with that just that small 15% which implementing AI is a
10:41very huge number. So that's it for Amazon, eBay and Etsy. There are so many new things you might
10:50have heard today and the practical implementation of AI. Write down in the comment section which
10:56implementation has affected you and which one you like the most. If you plan to implement
11:02anything in AI, develop any model, get in touch with us at sales at ibixel.com
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