It’s all about amazon

This issue of the newsletter is dedicated entirely to Amazon.

We’ll explore the latest happenings in the Amazon universe, highlighting new initiatives and areas of focus. I was genuinely surprised to discover how deeply integrated AI is within Amazon's operations; it's truly pervasive across the board.

In addition to the latest news, I’ll provide a compelling overview of Amazon's revenue streams, detailing the significance of AWS, the marketplace, and subscription services. You'll also find information on Kindle sales, employee growth, and Amazon’s acquisition history, including its largest purchases.

Additionally, the newsletter includes a list of POS solutions based on Amazon's cloud and highlights some retailers that utilize AWS. By the end of this edition, you'll have a much clearer understanding of Amazon and its extensive impact on the retail landscape.

They even know the name of the first book that Amazon sold.

Plus, read 10 amazing facts about Amazon that you probably didn't know.

Preview: Inside This Edition

News from the world of amazon

• Amazon’s AI Revolution: Transforming Video Advertising for Retailers
• Introducing Rufus, Amazon's AI Shopping Assistant
• Amazon's AI Shopping Guides
• Amazon’s New Game Show, Where E-Commerce Meets Entertainment
• Amazon’s Just Walk Out Technology Expands to Over 200 Stores with Advanced AI

Studies and learning

• Let's analyse amazon
• Overview of Amazon Cloud based POS solutions
• The Use of AWS in Retail
• 10 amazing facts about Amazon that you probably didn't know

Events

• next FREE webinar

News from the world of amazon

Amazon’s AI Revolution: Transforming Video Advertising for Retailers

Amazon is revolutionizing e-commerce advertising with its latest innovation—AI-powered video ads. Unveiled at the Amazon Accelerate event, this tool uses generative AI to convert simple product images into dynamic video ads, democratizing access to upper-funnel advertising channels. Currently in beta, the video generator is integrated into Amazon’s Sponsored Brands suite, making it easier and more affordable for retailers to create engaging video content.

One early adopter, French skincare brand Gellé Frères, has already reaped the benefits, slashing video production time ahead of Black Friday, and expanding their advertising efforts across more products. Amazon also introduced a "live image" feature that animates static images, enhancing visual appeal.

This move is part of a larger trend among tech giants like Meta and Google, as AI continues to streamline ad creation and improve scalability. While Amazon’s ad revenue grew 20% in Q2 to $12.77 billion, the company is positioning AI as a key tool to drive further growth in its ad segment.

As more brands adopt these tools, we could be seeing the future of automated, AI-driven advertising, enabling even smaller retailers to compete on a larger scale.

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Introducing Rufus, Amazon's AI Shopping Assistant

Amazon has launched Rufus, a generative AI-powered shopping assistant available to all U.S. customers.

Here are the key features:

• Product Guidance: Rufus answers questions about product details, features, and customer reviews, helping users make informed decisions.
• Tailored Recommendations: Users receive product suggestions based on specific needs, such as finding the best pool umbrella for Florida weather.
• Comparison Tools: Customers can compare similar products easily by asking direct questions.
• Trend Insights: Rufus keeps shoppers updated on the latest products and trends.
• Order Tracking: Users can track orders and access past purchases effortlessly.

To use Rufus, ensure your Amazon Shopping app is updated and tap the Rufus icon to start chatting. As technology evolves, Rufus aims to enhance the online shopping experience by providing personalized assistance every step of the way.

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Amazon's AI Shopping Guides

Amazon is revolutionizing the online shopping experience with its new AI Shopping Guides, designed to simplify product research for customers. With over 100 product categories covered—from TVs to dog food—these guides provide consolidated shopping advice and tailored recommendations, making it easier for shoppers to find the right products quickly.

Shopping for unfamiliar items can be overwhelming, often requiring extensive research on features and options. Amazon's AI Shopping Guides address this challenge by offering educational content and customer insights that empower users to make informed decisions. Whether you're looking for the latest technology in a new TV or the best running shoes, these guides help reduce the time spent in the research phase.

The AI Shopping Guides are powered by generative AI, utilizing large language models to continuously update information and adapt to trends and customer preferences. This ensures that shoppers always have access to the most relevant data, significantly enhancing their buying experience. Moreover, Amazon's shopping assistant, Rufus, is available to answer additional questions, further enriching the shopping journey.

Finding these guides is user-friendly, as they appear in search suggestions and can also be explored through specific links on Amazon’s website. As this feature rolls out to more product categories, it promises to transform how consumers discover and learn about the products they need.

Amazon’s New Game Show: Where E-Commerce Meets Entertainment

Amazon is once again pushing the boundaries of retail and entertainment wth its upcoming competition show set to launch on October 30. Blending the excitement of “Shark Tank” with the convenience of online shopping, this new show will feature entrepreneurs pitching products to a panel of judges, including Amazon executives and celebrity figures like Gwyneth Paltrow and Christian Siriano.

What’s unique about this show is the direct connection to Amazon’s marketplace. Finalists will see their products featured in a new “Buy It Now” store, and episode winners will take home $20,000. It’s a bold move to merge content and commerce, providing entrepreneurs with a rare opportunity to gain visibility on a global scale.

For small businesses, this show could be a game-changer. Competing for prime placement in Amazon’s crowded search results is costly, but this platform offers a new, more organic way to reach customers. As Amazon continues to innovate in both retail and media, this show could redefine how we shop and consume entertainment simultaneously.

Get ready to witness the next evolution of shopping and TV in one seamless experience!

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Amazon’s Just Walk Out Technology Expands to Over 200 Stores with Advanced AI

Amazon is revolutionizing the retail experience with its Just Walk Out technology, which allows customers to shop without traditional checkout lines. Now available in over 200 stores globally—including locations in airports, stadiums, hospitals, and college campuses—the technology uses advanced AI to deliver a seamless shopping experience.?

Just Walk Out leverages a multi-modal AI model that combines data from cameras and weight sensors throughout the store, allowing for more accurate detection of what shoppers pick up or put back. This system reduces checkout times and eliminates the need for manual retraining in complex scenarios, such as obscured cameras or overlapping shopper actions. It’s a significant advancement in AI-powered retail technology, offering retailers a more efficient solution while providing customers with a faster, hassle-free shopping experience.

Amazon’s expansion of Just Walk Out stores includes more than 30 college campuses and 170 third-party locations, and the company plans to double its footprint by the end of 2024. The system's ability to continuously learn from everyday shopping scenarios ensures that it will keep improving over time, making it easier for retailers to implement and enhancing convenience for consumers.

This expansion is a clear indicator of how AI is shaping the future of retail, offering unparalleled convenience for both businesses and customers. As more locations integrate this technology, the retail landscape could see a significant shift toward automation and efficiency.

Studies and learning

Let's analyse Amazon

Amazon started as a bookstore in 1994, but it wasn’t just any bookstore. Jeff Bezos originally considered naming the company "Cadabra" but changed it to "Amazon" after a lawyer misheard it as "cadaver." The name "Amazon" was chosen to reflect the vast selection of books, akin to the size of the Amazon River .

The first item sold on Amazon was a book titled "Fluid Concepts and Creative Analogies" by Douglas Hofstadter. This sale took place in 1995, long before Amazon became the diverse retail giant it is today .

From its early days, Amazon transformed the e-commerce landscape, but the introduction of the marketplace model marked a pivotal shift, as it didn't exist before. Since its founding in July 1994, Amazon has experienced phenomenal growth, with net sales revenue reaching an impressive $575 billion in 2023. This success has made Amazon one of the most valuable brands globally.

While the majority of Amazon's net sales still come from its e-commerce platform, other business segments are rapidly gaining significant value.

It's fascinating to observe which sectors are increasing their share of Amazon's overall revenue. While Amazon’s own online store is gradually declining in percentage, other segments are experiencing strong growth. The most rapid expansion is seen in the marketplace and AWS (Amazon Web Services) sectors.

Over 50% of the items sold on Amazon are from third-party sellers, highlighting the platform's role as a marketplace rather than just a retailer . This shift has reshaped the retail landscape and given rise to new entrepreneurial opportunities.

Interessting also that Amazon has sold an estimated over 130 million Kindle e-readers since their launch in 2007. The Kindle initially revolutionized the way people read, leading to significant growth in e-book sales. However, sales have seen fluctuations over the years. Recent estimates suggest that in the third quarter of 2024, Kindle sales could reach around 300,000 units, a decline compared to earlier years.

Amazon’s growth hasn’t been purely organic. Over 100 mergers and acquisitions across various industries have contributed to the expansion of its empire. Recent acquisitions have focused on AI technologies. For example, in August 2024, Amazon acquired Perceive, a startup specializing in AI microprocessors with low power consumption.

Amazon's most significant acquisition was Whole Foods in 2017, purchased for $13.7 billion. This strategic move not only provided Amazon with a physical retail presence but also offered valuable insights into the behaviors of traditional shoppers. Below are Amazon's largest acquisitions ranked by their financial impact:

1. Whole Foods: 2017, Food and Beverage, Grocery and Organic Food, for $13.7 billion
2. Metro-Goldwyn-Mayer: 2021, Media Production and Film, for $8.5 billion
3. Zoox: 2020, Autonomous Vehicles, Robotics and Transportation, for $1.2 billion
4. Zappos: 2009, E-Commerce, Retail and Shoes, for $1.2 billion
5. Ring: 2018, Home Security and Smart Home, for $970 million
6. Twitch: 2014, Social Media, Video, Video Games and Video Streaming, for $970 million
7. Kiva Systems: ?2012, Hardware, Mobile, Robotics and Software, for $775 million
8. PillPack: 2018, Pharmacy and E-Commerce, for $753 million
9. Souq.com: 2017, Consumer Electronics, E-Commerce and Shopping, for $580 million
10. 10. Quidsi: 2010, Beauty, Child Care and E-Commerce, for $545 million

The era of workforce reductions and declining profitability appears to be behind us, as 2024 is already demonstrating promising signs of growth.

Amazon’s online presence is impressive too. As of early 2024, Amazon has an unbelievable online presence with over 310 million active customer accounts globally. The website attracts a staggering over 2 billion visitors each month, with specific peaks and dips throughout the year. For instance, in April 2023, the site saw approximately 2.2 billion visits, though it recorded its highest traffic in December 2022 with 2.7 billion visits.

This combination of high visitor numbers and a large customer base showcases Amazon's dominance in the e-commerce sector.

Overview of Amazon Cloud based POS solutions

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Sitoo POS

https://sitoo.com/

Sitoo is a cloud-native Unified Commerce Platform designed specifically for global fashion and lifestyle retailers. This innovative solution enables seamless integration of all sales channels—both in-store and online—allowing retailers to operate in real time. By doing so, Sitoo empowers store associates to deliver a cohesive and enjoyable cross-channel customer experience.

The POS system is compatible with iOS and Android devices, functioning on both tablets and mobiles, and is known for its high performance, speed, and security. It is designed for quick implementation and is user-friendly, making it easy for retailers to integrate with other best-of-breed solutions. With over 300 retailers across EMEA, APAC, and the US trusting Sitoo, it has established itself as a leading choice for enhancing retail operations and improving customer satisfaction.

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NewStore, Inc.

https://www.newstore.com/

NewStore is a mobile-first, modular cloud platform designed for global brands aiming to accelerate their digital transformation. The platform offers an Omnichannel-as-a-Service solution that integrates point-of-sale (POS), order management (OMS), clienteling, inventory, fulfillment, and mobile shopping apps. This comprehensive omnichannel approach enables brands to deliver exceptional shopping experiences across all touchpoints, ensuring a seamless connection between online and in-store interactions. With NewStore, businesses can effectively meet customer demands and enhance overall engagement in today’s dynamic retail environment.

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XY Retail

https://www.xyretail.com/

XY Retail is a cloud-based point-of-sale (POS) application designed to enhance retail operations and customer experiences. Its user-friendly interface integrates with various sales channels, allowing real-time management of transactions, inventory, and customer data. XY Retail supports omnichannel capabilities, ensuring a seamless experience across in-store and online platforms. Additionally, it offers robust reporting and analytics tools to help retailers make informed decisions. This modular solution is ideal for modern retailers aiming to thrive in a digital marketplace.

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madMobile POS

https://madmobile.com/

POS solution tailored for retail and hospitality businesses. It offers a mobile-first approach, allowing associates to engage customers on the sales floor with tools for processing transactions, managing inventory, and accessing customer data. The platform supports omnichannel operations, enabling retailers to provide a seamless experience across in-store and online channels.

With robust analytics and reporting capabilities, Mad Mobile helps businesses gain insights into sales trends and customer preferences. The application is designed for easy integration with existing systems and can be customized to meet specific operational needs. This flexibility makes it an attractive choice for brands looking to enhance their customer experience and streamline their retail processes.

Wondersoft

https://www.wondersoft.com

Wondersoft POS is a cloud-based point-of-sale solution designed for retail and hospitality industries, focusing on enhancing customer experiences and streamlining operations. It features a user-friendly interface that enables fast transactions and comprehensive inventory management. The system offers real-time analytics, allowing businesses to track sales, manage stock levels, and gain insights into customer preferences.

Wondersoft POS supports various payment options and integrates seamlessly with other business applications, providing a holistic approach to retail management. Additionally, its mobile capabilities enable staff to assist customers anywhere in the store, enhancing service and engagement.

Aptos Retail

https://www.aptos.com/

Aptos ONE is a versatile POS solution that empowers retailers to provide Unified Commerce and unique customer experiences across all channels and locations. Leveraging thirty years of expertise in point-of-sale and omnichannel strategies, Aptos ONE offers essential microservices tailored for seamless integration in stores and online environments. This technology platform as a service is optimized for enhancing retail operations, enabling businesses to engage customers dynamically wherever they are.

The Use of AWS in Retail

Amazon Web Services (AWS) has become a cornerstone for many retailers seeking to enhance their operations, streamline processes, and deliver superior customer experiences. AWS offers a wide range of cloud-based services that support various retail functionalities, from inventory management to customer engagement.

Here are some of the retailers that are benefiting from AWS' robust infrastructure, enabling better data handling, faster transactions, and improved customer experiences.

Nike: The well-known sportswear brand uses AWS for its data analytics and to enhance its customer experiences, allowing for improved product recommendations and marketing strategies .

Nordstrom: The luxury department store leverages AWS to power its e-commerce platform, ensuring a seamless shopping experience for customers

McDonald’s: This fast-food giant utilizes AWS to improve customer experiences through data analytics and machine learning

Sainsbury’s: The UK supermarket chain migrated to AWS to modernize its online grocery business, significantly enhancing customer engagement and increasing the frequency of product releases

Disney: AWS supports various operations for Disney, including its streaming service Disney+ and operational needs at its theme parks

7-Eleven: The convenience store chain has adopted AWS for various applications, enhancing its operational efficiency and customer experience through cloud technology.

Kroger: This major supermarket chain utilizes AWS to improve its supply chain management and customer engagement, with POS integration playing a key role.

Lowe's: The home improvement retailer uses AWS to enhance its in-store technology, including POS systems that provide real-time inventory and customer data.

Dunkin': The coffee and donut chain employs AWS for its POS systems, helping to manage transactions efficiently across locations.

Albertsons: This supermarket chain leverages AWS to support its POS systems, improving the overall shopping experience through data-driven insights.

The integration of AWS into retail operations is revolutionizing how retailers engage with customers and manage their supply chains.

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10 amazing facts about Amazon that you probably didn't know

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1. In its early days as a public company, Amazon sought to expand its e-commerce presence by launching an auction site to rival competitors. Remarkably, on the day the auction site debuted in 1999, Amazon's stock surged over 8%.
2. Before Google introduced its "Street View," Amazon launched its own search engine, A9.com, in 2004. This platform initiated a project called Block View, a visual Yellow Pages that allowed users to see street views of addresses and directions to their destinations. By offering this feature, Amazon aimed to enhance the user experience by providing a more interactive way to navigate neighborhoods and find locations, showcasing the company’s commitment to diversifying its digital services.
3. In its early days, Amazon celebrated every sale with the cheerful sound of a ringing bell. Former employee Jonathan Kochmer recalls, "We had a little bell that would ring every time a book was ordered. So we’d all be working, and when it went 'Ding!', we’d cheer, 'Yay! We sold a book!'" This simple yet effective ritual not only marked each sale but also fostered a sense of community and excitement among the team as they witnessed the growth of what would become one of the world's largest e-commerce platforms.
4. Amazon owns 41 subsidiaries and brands. Some of them are Goodreads, Whole Foods, Audible, IMDb (Internet Movie Database):, Twitch Souq.com and others.
5. Amazon employees enjoy the company of their furry friends in the workplace, with approximately 6,000 dogs sharing the Seattle campus. This pet-friendly policy fosters a relaxed and enjoyable atmosphere, promoting employee well-being and morale .
6. In its inaugural year, Amazon's founder, Jeff Bezos, took a bold marketing approach by hiring mobile billboards that drove by Barnes & Noble stores, a prominent American bookstore chain. These billboards posed the question, "Can’t find that book you wanted?" and displayed Amazon's website address.
7. Amazon set a remarkable record for its fastest order delivery, achieving the feat with a four-pack of Starbucks Vanilla Frappuccino sent to a customer in Miami in under 10 minutes.
8. Amazon ships approximately 18.5 orders every second, which translates to over 66,000 orders per hour and 1.6 million packages per day
9. Amazon's website experienced a notable outage on August 15, 2019, when it went down for approximately 49 minutes. During this time, the company reportedly lost around $5.7 million in sales .
10. Amazon has licensed its one-click purchase patent to Apple, allowing the tech giant to incorporate this innovative shopping feature into its platforms.

Events

FREE Webinar

Preparing for Finland's New E-Receipt Law: What Retailers Need to Know

Finland has introduced a new regulation on the use of e-receipts, set to take effect by January 1, 2025. The regulation outlines the key players in the e-receipt ecosystem, as well as the technical and functional models required to facilitate the structured transfer of e-receipts. It also includes a standardized e-receipt data model that must be used.

In this webinar, Nikolina Basic , a legal consultant at Fiscal Solutions, will cover all the important details retailers need to know to ensure compliance with the new regulation.

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