Tag Archives: amazon web services

Amazon, The Data Company, Not The Retailer

Last week I blogged about $GOOG.  This week, we’ll talk about $AMZN.

I find myself using Amazon much more than I used to.  I use the desktop version and the iPhone app though most of my usage comes from the iPhone app.

I’ve tasked myself to think about why I use Amazon.

Price was my first reaction.

Buying online for consumers used to be about price – mainly because you did not have to pay sales tax.  Amazon is collecting sales tax, but from just 8 states but three of those states are the most populated states in the USA including California, New York, and Texas.  Based on a July 2012 estimate, they collect sales tax on 35.45% of the country.  New Jersey and Virginia are expected to join the Sales Tax list in 2013 which would push the total coverage of the USA to 41% of the US population.

So eventually, buying online will not be about saving on sales tax.  It’s about something much bigger.  Convenience.  Selection.  And much more.

Here’s what I basically netted out to:

Amazon isn’t necessarily about the lowest price, but the most convenient shopping (1-click).

The 1-click shopping experience on Amazon is amazing.  It’s dead simple.  I cannot tell you how many times I’ve been sitting with someone who recommends a book and I pull out my phone and within fifteen seconds, I order the book and its delivered via Amazon Prime (48 hours).  Their search works, their catalog of product is deep and broad, and the checkout experience is headache-less.

I wish every single site and store deployed a similar checkout mechanisms.

At the agency, we’ve partnered with Amazon in an advertising relationship and are working with them on a client business or two.  I never thought I’d be working with a retailer in this capacity, but I am.

So what is Amazon?

To me, in my opinion, is a data company that uses intent and e-commerce to build its dataset.  Sound similar to Google?  Yep.  Only difference is that Amazon is a bit more diverse with its data set as it has the actual sale of product.  Keep that in mind.

Oh, and Amazon also has an entire cloud hosting division.  How much data resides and passes thru their cloud?