Amazon’s Use of Artificial Intelligence

Updates: Amazon

Amazon Uses AI to Optimize Logistics

Amazon has reported that they are working on a project through which customers will receive their goods from the warehouses closest to them. During the Covid-19-related growth, Amazon doubled its warehouse space in the U.S. and can now operate more on a regional level. It does so by using AI to identify which products are in demand and where. As a result, three-quarters of products are already expected to be delivered to their destination the same day or the next day. Amazon also plans to place products higher in search results if they are geographically closer to customers and can be delivered faster. 

Amazon Plans an AI Chatbot on its Platform

Job postings from Amazon indicate that the company is looking to integrate a ChatGPT-like product search experience into its online store to make shopping easier. The interactive conversational experience is expected to help users answer their questions, compare products and receive personalized suggestions. Amazon is increasingly investing in generative AI and, as our fact of the week shows: Amazon is ahead of Google, being the first place to go for online product searches in the US and Europe.

Virtual Shopping with Amazon Anywhere

Amazon Anywhere allows customers to browse Amazon’s product line in virtual worlds such as video games, augmented reality, and apps where they can then also buy physical products from the online marketplace. The program was first introduced in Peridot, an augmented reality game from Niantic. Players can access products in the game and view information such as product details, price, and delivery date. They can then be purchased by clicking a button.

Updates: E-Commerce

Fear of Ban: TikTok Postpones U.S. Shopping Launch

TikTok has postponed the launch of its U.S. shopping platform. Merchants worry about a ban on TikTok in the U.S. – similar to the one now in US-state Montana – and the dampened interest in live-stream shopping in the U.S. market. TikTok justified the delay by saying it wanted to offer more merchants the opportunity to join the store.

Walmart’s Quarterly Results: Expectations Exceeded

Walmart posted a significant increase in profits from its grocery and online businesses, managing to beat expectations for its first-quarter results. Sales came in at $152.30 billion versus the expected $148.76 billion. The brick-and-mortar grocery business managed to offset weaker apparel and electronics sales. This confirms the trend that consumers are currently prioritizing groceries and everyday goods.

What Caught Our Attention

Amazon’s new seller verification regulation, which we reported on a few months ago, goes into effect on June 27. It requires large third-party sellers to provide information about their companies. Amazon, in turn, agrees to collect, verify and disclose it.

Amazon is now testing a “small business” search filter to help shoppers narrow their search results to products offered by small businesses. Last year, Amazon had already introduced “small business” badges.

Podcast Ads on Amazon are now available for the British platform via Amazon DSP. Amazon advertisers in the U.K. can access a diverse podcast inventory through the Demand Side Platform, which offers programmatic options and support from the Amazon Ads Creative Studio team.

Amazon reports that it has updated guidelines for the daily budgets for Sponsored Products, Sponsored Brands and Sponsored Display. It is now possible to set campaigns to increase the daily budget by either 100% or 25% by using the unused budget from the previous days.

Amazon has introduced Brand Impression Share in the Advertising Console, which allows users to see the percentage of their own ads compared to other advertisers’ ads.

• This is displayed in the top-of-search results for brand terms targeted across all accounts. 
• Currently, a maximum time period of one week can be set.
•  In addition, filters can be applied to identify keywords that lead to top-of-search impressions. 
• Bid changes can then be made directly for keywords that fall below the applied filters (e.g. less than 10% top-of-search impressions, conversion rate >5%).

Amazon has set up a special page for advertisers to check on the current status of services such as campaign creation, management, ad delivery and reporting on Sponsored Ads and Amazon DSP. This means that it is now possible to check in real time whether there has been a service interruption.

Fact of the Week

The vast majority of Amazon shoppers (66% on average) in the markets we surveyed, start their product searches on Amazon rather than Google or another search engine (source:  International Amazon Shopper Report 2022, Remazing & Appinio).

Remdash x Delta Pronatura: Custom Data & Dashboards

Here’s How Delta Pronatura Saves More than 600 Hours of Work Every Year with Remdash’s Custom Dashboards Feature.

Read now

Top 5 Amazon Keywords

These are the top 5 most searched keywords by country from May 14 to May 20, 2023.

Among European Amazon users, the new video game “The Legend of Zelda: Tears of the Kingdom” showed great popularity during the period we analyzed. In addition, the new series “AIR” increasingly appeared in searches on the American and British Amazon marketplace.