Amazon
Amazon has introduced a batch of new generative AI tools that aim to improve the retail experience for both customers and sellers on the platform. One of the more notable announced at the Amazon Accelerate event on Thursday will use customers’ preferences, search, browsing, and purchase history to create personalized product recommendations on Amazon’s homepage…..Continue reading….
Source: The Verge
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Amazon sells many products under its own brand names, including phone chargers, batteries, and diaper wipes. The AmazonBasics brand was introduced in 2009, and now features hundreds of product lines, including smartphone cases, computer mice, batteries, dumbbells, and dog crates. Amazon owned 34 private-label brands as of 2019.
These brands account for 0.15% of Amazon’s global sales, whereas the average for other large retailers is 18%. Other Amazon retail brands include Presto!, Mama Bear, and Amazon Essentials. Amazon derives many of its sales (around 40% in 2008) from third-party sellers who sell products on Amazon. Some other large e-commerce sellers use Amazon to sell their products in addition to selling them through their websites.
The sales are processed through Amazon.com and end up at individual sellers for processing and order fulfillment and Amazon leases space for these retailers. Small sellers of used and new goods go to Amazon Marketplace to offer goods at a fixed price. Publishers can sign up as affiliates and receive a commission for referring customers to Amazon by placing links to Amazon on their websites if the referral results in a sale.
Worldwide, Amazon has “over 900,000 members” in its affiliate programs.[81] In the middle of 2014, the Amazon Affiliate Program is used by 1.2% of all websites and it is the second most popular advertising network after Google Ads. It is frequently used by websites and non-profits to provide a way for supporters to earn them a commission.
Associates can access the Amazon catalog directly on their websites by using the Amazon Web Services (AWS) XML service. A new affiliate product, aStore, allows Associates to embed a subset of Amazon products within another website, or linked to another website. In June 2010, Amazon Seller Product Suggestions was launched to provide more transparency to sellers by recommending specific products to third-party sellers to sell on Amazon. Products suggested are based on customers’ browsing history.
Amazon allows users to submit reviews to the web page of each product. Reviewers must rate the product on a rating scale from one to five stars. Amazon provides a badging option for reviewers which indicates the real name of the reviewer (based on confirmation of a credit card account) or which indicates that the reviewer is one of the top reviewers by popularity.
As of December 16, 2020, Amazon removed the ability of sellers and customers to comment on product reviews and purged their websites of all posted product review comments. In an email to sellers Amazon gave its rationale for removing this feature: “… the comments feature on customer reviews was rarely used.” The remaining review response options are to indicate whether the reader finds the review helpful or to report that it violates Amazon policies (abuse).
If a review is given enough “helpful” hits, it appears on the front page of the product. In 2010, Amazon was reported as being the largest single source of Internet consumer reviews. When publishers asked Bezos why Amazon would publish negative reviews, he defended the practice by claiming that Amazon.com was “taking a different approach … we want to make every book available—the good, the bad and the ugly … to let truth loose”.
There have been cases of positive reviews being written and posted by public relations companies on behalf of their clients and instances of writers using pseudonyms to leave negative reviews of their rivals’ works. The Amazon sales rank (ASR) indicates the popularity of a product sold on any Amazon locale. It is a relative indicator of popularity that is updated hourly. Effectively, it is a “best sellers list” for the millions of products stocked by Amazon.
While the ASR has no direct effect on the sales of a product, it is used by Amazon to determine which products to include in its bestsellers lists.[88] Products that appear in these lists enjoy additional exposure on the Amazon website and this may lead to an increase in sales. In particular, products that experience large jumps (up or down) in their sales ranks may be included within Amazon’s lists of “movers and shakers”; such a listing provides additional exposure that might lead to an increase in sales.
For competitive reasons, Amazon does not release actual sales figures to the public. However, Amazon has now begun to release point of sale data via the Nielsen BookScan service to verified authors. While the ASR has been the source of much speculation by publishers, manufacturers, and marketers, Amazon itself does not release the details of its sales rank calculation algorithm. Some companies have analyzed Amazon sales data to generate sales estimates based on the ASR, though Amazon states:
Please keep in mind that our sales rank figures are simply meant to be a guide of general interest for the customer and not definitive sales information for publishers—we assume you have this information regularly from your distribution sources. In November 2015, Amazon opened a physical Amazon Books store in University Village in Seattle. The store was 5,500 square feet and prices for all products match those on its website.
Amazon opened its tenth physical book store in 2017; media speculation at the time suggested that Amazon planned to eventually roll out 300 to 400 bookstores around the country. All of its locations were closed in 2022 along with other retail locations under the “Amazon 4-Star” brand. In July 2016, the company announced that it was opening a 1,100,000 ft (335,280.0 m) square foot facility in Palmer Township in the Lehigh Valley region of eastern Pennsylvania. As of 2024, Amazon is Lehigh Valley region’s third-largest employer.
In August 2019, Amazon applied to have a liquor store in San Francisco, as a means to ship beer and alcohol within the city. In 2020, Amazon Fresh opened several physical stores in the U.S. and the United Kingdom.
Amazon has a number of products and services available, including its digital assistant Alexa, Amazon Music, and Prime Video for music and videos respectively, the Amazon Appstore for Android apps, the Kindle line of eink e-readers, Fire and Fire HD color LCD tablets. Audible provides audiobooks for purchase and listening.
In September 2021, Amazon announced the launch of Astro, its first household robot, powered by its Alexa smart home technology. This can be remote-controlled when not at home, to check on pets, people, or home security. It will send owners a notification if it detects something unusual.
In January 2023, Amazon announced the launch of RXPass, a prescription drug delivery service.
It allows U.S. Amazon Prime members to pay a $5 monthly fee for access to 60 medications. The service was launched immediately after the announcement except in states with specific prescription delivery requirements. Beneficiaries of government healthcare programs such as Medicare and Medicaid will not be able to sign up for RXPass.
Amazon owns over 100 subsidiaries, including Amazon Web Services, Audible, Diapers.com, Goodreads, IMDb, Kiva Systems (now Amazon Robotics), One Medical, Shopbop, Teachstreet, Twitch, Zappos, and Zoox. Amazon Web Services (AWS) is a subsidiary of Amazon that provides on-demand cloud computing platforms and APIs to individuals, companies, and governments, on a metered pay-as-you-go basis.
These cloud computing web services provide distributed computing processing capacity and software tools via AWS server farms. As of 2021 Q4, AWS has 33% market share for cloud infrastructure while the next two competitors Microsoft Azure and Google Cloud have 21%, and 10% respectively, according to Synergy Group.
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