Think about the challenge faced by large e-commerce websites like Amazon or Netf

Question

Think about the challenge faced by large e-commerce websites like Amazon or Netflix. Brick-and-mortar retailers can capture people’s attention in the store with eye-catching point-of-purchase displays or suggestive selling by store employees. However, these are not options for retail websites. They need an effective way of recommending their vast array of products to customers. Most e-commerce sites provide website search tools based on the technologies previously discussed in this chapter. Relying on customers to find products through an active search, however, assumes customers know what they want and how to describe it when forming their search query. For these reasons, many e-commerce sites rely on recommendation engines (sometimes called recommender systems). Recommendation engines proactively identify products that have a high probability of being something the consumer might want to buy. Amazon has long been recognized as having one of the best recommendation engines. Each time customers log into the site, they are presented with an assortment of products based on their purchase history, browsing history, product reviews, ratings, and many other factors. In effect, Amazon customizes their e-commerce site for each individual, leading to increased sales. According to Amazon employees, click-through and conversion rates “vastly exceed those of untargeted content such as banner advertisements and top-seller lists”

There are three widely used approaches to creating useful recommendations: content-based filtering, collaborative filtering, and hybrid strategies

QUESTION:

Pick a website that you like, in this case choose Amazon.

Analyze How it recommends products and services

Identify 2 or 3 points that you like from their recommendation

Identify 1 or 2 areas that they could improve

Explanation / Answer

Amazon has been a phenomenon in recent times and it can be stated that Amazon brought in, the revolution of ecommerce by its effort to make the latest trend possible because before Amazon there were various organizations who actually tried to achieve this feat but could not succeed completely. Amazon has been flexible and adaptable in its approach towards the business it does which makes it quite a phenomenon in the industry and a great success, which can be depicted by the numbers and statistics related to the organization.

Amazon recommends its products and services through proper marketing and various other strategies like individual focus, flash sale, product recommendation based on search, etc. The success of Amazon depends a lot on its adaptability to technology because Amazon has been quite specular in adopting new technologies which makes them unique and best of the rest. For example, when a customer logs in, the products and services are based on the customers' previous search and likes of the person that he or she has displayed while searching and this feature differs from one person to another which is quite obvious. Amazon also uses flash sale as an option in which a product which is newly launched is sold in a particular time frame on a particular day of the week, this actually increases the demand of the product because people feel that the product actually has a huge demand in the market.

I feel that the individual focus feature that the organization uses is actually good and helpful because the user can actually see new products and discounts in their liked category which I feel is awesome. The hybrid strategy it uses here is quite acceptable and influencing in nature.

I believe that Amazon is doing quite good but they can improve in some aspects, like:

1. The sales charge which cane be reduced because it may vary from 7% to 20%

2. Price battle is present among several providers, which needs to be stopped.

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