Retail vs Amazon: How AI can help retailers beat online shopping giants?

Regardless of whatever happens in the retail industry, one thing remains constant: customers remain the priority. With this in mind, it should be pointed out that customers’ demands are faster, and they desire to create a cheaper means of getting their transactions done.

For this reason, numerous retailers struggle to keep pace with the rising demands of customers. Retail sales suffer as a result. However, to ensure that they can determine where, when, and what customers wish to buy while taking a page from other retail giants’ play books – such as Amazon – they must find a way to achieve a unified distribution center to enjoy significant profits.

To explain more, this comprehensive guide will provide an insight into the ways retailers can enjoy more gains and efficiency than online shopping giants by making use of Artificial Intelligence. Keep on reading!

How Artificial Intelligence and Machine Language can interpret demand

Online shopping giants have set a higher standard with respect to meeting customers’ demands through perks that are difficult to compete with, including competent data scientists, expensive budgets, a huge amount of data to work with, as well as the ability to turn information derived from research into a strategy to get good results.

For retailers, there is a great need to acquaint themselves with making use of data and making the most of it to compete in the current retail environment. By doing so properly, it becomes easier to meet consumers’ expectations while also preventing lost sales and markdowns.

An accurate, panoramic view of customers’ demands can be achieved by embracing the power of Machine Language (ML) and Artificial Intelligence (AI). Retailers often find it hard to adopt analytics to achieve good results even though most see the essence of advanced analytics. Without incomplete data, it can be difficult to predict the demand of consumers.

Yet, the advancements that have been achieved in Artificial Intelligence have ensured that retailers can be exposed to different means through which adequate analysis of various data points can be done quickly to help in evaluating the best possible options to consider. This gives retailers the insight they need to take steps that will maximize gross margins.

Besides this, robust optimization is possible, thanks to technological advancements. As a result, it becomes easier for retailers to solve a great variety of planning, critical merchandise, and other challenges. Optimization will expose retailers to the right strategy, based on their objectives, which can ensure that demands can be met while taking into consideration shipping costs, capacity timing, and many more.

The use of AI makes this optimization possible and this can account for customer satisfaction, as well as the general margin profitability. They do so by being able to identify the long-term opportunity cost against the immediate payoff. Now that applied Artificial Intelligence has become more accessible, cheaper, and more user-friendly than before, retailers can easily copy what other online shopping giants do and level the playing field.

This is done in a way that ensures that all available resources and data are sufficient enough to promote the development of effective personalization that motivates shoppers to keep shopping. Now, retailers do not need to be an online shopping giant like Amazon to achieve compelling personalization and generate more sales.

According to many, this can be seen as a form of democratisation of Artificial Intelligence, which makes available all technologies and methods that were once only accessible to online shopping giants. This will particularly help several retailers tackle the issues of optimization, ensuring that they will not simply understand or meet the demands of the customers but also deliver a fine user experience.


As technology advances, people have been treated to several options that can ensure convenience. As a result, customers’ demands and expectations are higher than ever. After all, technology should make it easier to render quality services. However, in truth, many retailers find it hard to keep pace with growing user demands, as well as the latest technologies. As a result, it becomes harder for them to analyze customer behaviours, thereby creating a gap between them and other tech giants like Amazon. Yet, the use of Artificial Intelligence has ensured that the playing field can be levelled by promoting robust optimization capabilities.