New Guidance for Intelligent Product Substitutions on AWS
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This article presents AWS guidance for intelligent product substitution recommendations to address out-of-stock retail items using machine learning and vector embeddings.
- Grocers face 8.2% average out-of-stock rates, risking $7-12B in sales annually
- Uses Amazon OpenSearch Service k-NN index with text embeddings for product similarity matching
- Employs all-MiniLM-L6-v2 sentence transformer to convert product titles/descriptions to numerical vectors
- Architecture: S3 upload → Lambda → DynamoDB → Lambda embedding → OpenSearch indexing
- API Gateway endpoint enables substitution queries with optional filters (category, price, allergens, diet type)
- Supports JSON Lines product catalog format with required id and title fields
- Recommends showing top three substitutions to order pickers for selection
This solution helps retailers reduce lost sales from stockouts by providing intelligent, filtered product recommendations based on semantic similarity.
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