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Can Consumer Packaged Goods Utilize AI Against Amazon?


Can Consumer Packaged Goods Utilize AI Against Amazon?

Amazon has emerged as the forefront of the contemporary retail sector, for better or for worse. I truly appreciate the ease of online shopping through Amazon, but it appears that as time progresses, the retail industry becomes more standardized. Amazon is crafting its own store labels for various items, or incorporating other brands under its umbrella. Their AmazonBasics range, though quite… fundamental, is competently crafted, readily accessible, and primarily, inexpensive. How can the other global brands stand up against that, particularly when they rely on Amazon for tasks like delivery and consumer data? The solution might lie in artificial intelligence.

Most manufacturers of consumer packaged goods (CPGs) specialize in producing goods adeptly. They lack the workforce or infrastructure that Amazon possesses to eliminate intermediaries and transport their products directly to customers at reasonable rates. AI could, at least hypothetically, mitigate some of these challenges, offering CPG producers an opportunity to operate independently.

Credit: project44

An adeptly developed AI system could manage various essential tasks for an online store. This encompasses aspects like stock control, delivery timetables, and monitoring customer demographic information. The latter is particularly crucial, as demographic data is what enables Amazon to target specific markets with precision. If a CPG producer could pin down their ideal customer, and the AI handles all the intricacies, it would free up resources and labor for enhancing online platforms and shipping goods to the optimal locations for maximizing profits.

Naturally, a transition like this wouldn’t transpire overnight, and Amazon undoubtedly wouldn’t yield easily. However, a bit of healthy rivalry is deemed the cornerstone of capitalism. Amazon possesses its own set of advantages, so why not empower the smaller players with a bit more strength?

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