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Why Amazon? Making the Most of an Unexpected Innovation Hub (Pt.3)

Amazon is where technology and flexibility intersect in ecommerce.

Do you ever imagine what it was like to be alive in the decades following the adoption of the printing press? Or industrialized processes? Or pretty much any civilization-changing technology?

While no two historical situations have a one-to-one overlap, thanks to two little letters — AI — we likely have a glimmer of those moments' excitement and anxieties.

In an industry already undergoing a reformation due to technological changes of the past two decades, it’s easy to be dizzied by the pace of change. But the AI tech revolution could be the most transformative yet. For the enterprising brand seeking to stay ahead of the competition, it’s a smart idea to pay attention.

Consequently, it’s also another great reason to be doing business on Amazon. As one of the world's biggest tech companies, you can be assured that it’s operating on the cutting edge of AI adoption and is constantly investigating new applications for sellers and consumers alike. While it’s hard for the layperson to know where to begin with AI, especially at this early stage, simply operating on Amazon gives you some peace of mind that you won’t be left behind. And luckily, at Recom, our experts know how to guide you in the right direction.

Just think of all the ways Amazon technology can help you increase profit. We already know that boosting consumer confidence goes hand in hand with accelerating sales. Features like personalized product recommendations and Virtual Try-On go a long way toward mitigating that gnawing worry that the sweater or daring lipstick shade you’ve chosen will look right. And survey data backs that up, with 26% of consumers on Amazon indicating they’d used the try-on functionality. That jumped to a whopping 40% in the 13–26-year-old age bracket. The experience was so favorable that 94% of those respondents said they’d use it again.

AI is also fueling an incredible ability to boost efficiency. Just look at its effects on the supply chain. Thanks to AI optimizations, Amazon Prime’s famed two-day shipping is now often one day or even within hours of placing an order, depending on where the buyer lives. And given that there are 167 million Prime members in the U.S. alone, that’s a massive pool of revenue opportunity that brands should take seriously. Over 70% of all Amazon consumers are Prime members, which represents 53% of paid retail membership fees in the U.S.

And according to market research, 85% of respondents said they would prefer to purchase on Amazon, and if they aren’t purchasing, 80% use it for product research. All these numbers point toward the reality that Amazon customers are engaged with the platform, enjoy its features, and keep its URL handy whenever they need a product or information about a product. So the real question is: Why pass potential customers by instead of meeting them where they prefer to purchase?

From its Subscribe & Save program that makes repeat purchases a set-and-forget guarantee to its repetition-fueled Buy Now, Add to Cart, and Save for Later systems that reinforce the ease of the shopping experience, every step of the Amazon shopping experience literally builds muscle memory. No matter what product you're shopping for, the experience is the same — right down to the “Confirm Purchase” click.

That’s even before we consider how newer, AI-powered technologies can be combined with tried-and-true technologies and techniques to influence sales-building consumer behaviors. That includes user-generated content, educational blog posts and tutorials, social shopping features, A/B content testing, and influencer collaborations, plus pivotal annual events like Prime Day, which generated $12.7 billion worldwide in 2023.

That combination of bold experiments with rock-solid fundamentals extends toward future rollouts, including a “complementary product set” feature enabling brands to feature additional products on each detail page.

And the best part? Brands are free to experiment and utilize the features that work best for them. Not sure if Virtual Try-On is right for you? Test it out on Amazon to see what it does for your conversions before you invest serious resources into it. Need to fine-tune your product images and listings? Run an A/B test on Amazon and make decisions based on real data. If it feels overwhelming, don’t worry! At Recom, it’s our job to keep ahead of all these features and more. By studying your brand, priorities, and goals, our experts can build a strategy that folds in new bells and whistles atop rock-solid fundamentals.

Whether you choose to deploy an ecommerce strategy on Amazon, another marketplace, or several of them simultaneously, Recom is here to guide you through the process. Our experts are ready to talk any time about brand strategy, growth, and an ecommerce launch that protects your brand identity while expanding your bottom line. Give us a call or email today — we can’t wait to help you as you begin your Amazon adventure.