Check out Amazon’s annual shareholder letter - https://s2.q4cdn.com/299287126/files/doc_financials/2021/ar/Amazon-2020-Shareholder-Letter-and-1997-Shareholder-Letter.pdf

@D J got you. Thanks for explaining! And appreciate the share.

Chris Nheu

@Chris Nheu Well Prime did pioneer 1-click checkout, and their logistics and supply chain & fulfillment infrastructure are a pretty damn powerful most.  Regarding the recommendation engine, it’s certainly powerful to a fault (& introduces antitrust risk) but wasn’t the point of the notes I shared.  Anyway, this note I clipped I think illustrates the influence of their recommendations- https://www.evernote.com/shard/s142/sh/a1ff642f-8c85-4857-b284-e07f7493d2cb/f2caaa9f0c514ae1acbfbeebb8af5d82

Clip source: The Takeaway: Why I Love and Fear Amazon Basics A Home Made of Amazon Stuff Jeff Bezos this week wrote his final shareholder letter as he steps aside as CEO of Amazon. It is remarkable wh...

The Takeaway: Why I Love and Fear Amazon Basics

@D J I see the time efficiency and value perspective. I guess I’m wondering what makes Amazon special in that particular regard (3 min repeat purchase). Something special about that other e-commerce retailer can’t reproduce. 

I thought Amazon’s uniqueness was derived first from scale and affordability, secondly recommendation engines. 

So if I see some metrics about value derived from time saved, then I’d be interested to see that metric isolated to its recommendation engine driving AID or discovery to purchase loops. Hope this makes sense.

@D J I see the time efficiency and value perspective. I guess I’m wondering what makes Amazon special in that particular regard (3 min repeat purchase). Something special about that other e-commerce retailer can’t reproduce.   I thought Amazon’s uniqueness was derived first from scale and affordability, secondly recommendation engines.   So if I see some metrics about value derived from time saved, then I’d be interested to see that metric isolated to its recommendation engine driving AID or discovery to purchase loops. Hope this makes sense.

I never mentioned and don’t think it’s about the recommendation engine but holistic time savings.  I used to have to go to the store to buy 🧻, now it just shows up.  That aggregate time savings is immensely valuable.  

It’s how Netflix (no ads) justifies its cost as a great value (recover 219hrs or 9.1 days a year).  Many would say, and I tend to agree, time is more valuable than money.

I never mentioned and don’t think it’s about the recommendation engine but holistic time savings.  I used to have to go to the store to buy 🧻, now it just shows up.  That aggregate time savings is immensely valuable.    It’s how Netflix (no ads) justifies its cost as a great value (recover 219hrs or 9.1 days a year).  Many would say, and I tend to agree, time is more valuable than money.

@D J right so all the same recurring purchases don’t really tell us anything about the technological advantages of Amazon. 

Like I’d want to know how much time they save on a first time purchase, including the AIDA loop. Because this might actually inform us of the true power of their recommendation engine as opposed to just say... great UX, 2 clicks to purchase for a repeat buy of your fav whisky

@D J right so all the same recurring purchases don’t really tell us anything about the technological advantages of Amazon.   Like I’d want to know how much time they save on a first time purchase, including the AIDA loop. Because this might actually inform us of the true power of their recommendation engine as opposed to just say... great UX, 2 clicks to purchase for a repeat buy of your fav whisky

D J

A group of likeminded people in The Most Important Thing are talking about this.