The Future of Electronic Commerce in the IoT Environment

Abstract

The Internet of Things (IoT) was born from the fusion of virtual and physical space and became the initiator of many scientific fields. Economic sustainability is the key to further development and progress. Today, the need for electronic commerce has become an economic priority in the transition period between Industry 4.0 and Industry 5.0. Unlike mass production in Industry 4.0, customized production in Industry 5.0 should reach its true potential in vertically organized management and decision-making systems. The authors focused their research on e-commerce based on the three-level vertical IoT environment and the edge, fog, and cloud computing. The paper presents hands-on machine learning (ML) algorithms to facilitate the transition from a flat to a vertical e-commerce concept. The authors also propose practical ML algorithms for a few e-commerce types: consumer-consumer relationships and consumer-company-consumer relationships. These algorithms are mainly composed of convolution neural networks (CNN), natural language understanding (NLU) and sequential pattern mining (SPM), reinforcement learning (RL for agent training), algorithms for clicking on the item prediction, consumer behavior learning, etc. All presented concepts, algorithms, and models are described in detail.