E-COMMERCE- FROM PUSH/IMPULSIVE TO INTELLIGENT
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Abstract
Traditionally, businesses pushed their products on consumers and consumers shopped out of impulse, rather than need.
Electronic commerce (E-commerce), a subclass of electronic business, involves buying and selling of goods/services over the internet. E-commerce has drastically changed the way consumers shop and businesses sell. Internet improves productivity for the organizations which use it by helping businesses overcome restrictions on reach, communication with customers, timing, etc. Still, the traditional online shopping requires lots of effort from both sellers (marketing, generation of leads etc.), and consumers (collecting/interpreting available information, making purchase decision etc.).
Artificial Intelligence (AI), a general purpose technology (like electricity, and steam engine) aimed at creating systems which mimic human intelligence, can be leveraged to create business models for E-commerce which are innovative, personalized, interactive, quick as well as secure and at the same time, optimize buying experience of consumers.
As per a report titled “India’s Digital Leap–The Multi Trillion Dollar Opportunity”, published by Morgan Stanley in October 2017, India had 60 million online shoppers in 2016, which is expected to rise by over 50% by 2026. The report further mentions that nearly 430 million Indians have Internet access and smart phone penetration is expected to reach 700 million by 2020. At the same time, data costs are plummeting due to steep competition amongst India's telecom companies. These figures represent the opportunity that awaits E-commerce sector in India where AI can play the role of a key differentiator.
The national report on “E-commerce development in India” (2017) published by United Nations Industrial Development Organization, mentions that only 25% of the internet users in India buy or sell goods and services online and this number is expected to grow in the coming years. This indicates the huge growth potential of the Indian E-commerce sector.
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