You may have heard about Amazon’s recommendations. If you’ve used the website for any length of time, you’ve likely noticed its recommendation system. It displays a list of items frequently purchased together and is intended to increase average order value and revenue from customers. The list contains best-sellers and doesn’t focus on specific brands, so the items will likely convert interested browsers into paying customers. One interesting fact about the recommendations system is that Amazon only recommends products that a person has looked at or added to their cart.
In fact, Amazon’s recommendations have become so sophisticated that they are becoming mythic. They span across channels, devices, and platforms, and they take on countless forms. Recently, the company revealed that it has 45 different recommendation widgets on the Amazon app home page. The company has clearly devoted itself to enhancing product discovery and making it easy for customers to make informed decisions. The machine learning recommendation engine powers this entire process. To keep this customer experience top-notch, businesses should emulate the strategies used by Amazon.
In addition to customer service, Amazon is now attempting to expand into other industries. While most retailers are still focusing on retail sales, the company is expanding into e-books, hardware, and digital downloads. The Kindle e-reader is one example of its recent success. And as it continues to grow, the company is looking to enter new markets. By offering more than just books and movies, Amazon aspires to dominate the logistics industry, warehouse robotics, and infrastructure.