The Amazon Selling Machine

from The Atlantic

The e-commerce company has so much information about us that it’s become expert at shilling us things we didn’t even know we needed. No wonder its advertising business is booming.

What if there were a company that knew what you wanted to buy before you did? What if it made shopping recommendations that tapped into your deepest desires? Better yet, what if it then made buying completely seamless? Would you ever stop shopping?

Amazon shareholders may like the answers to those questions. The company that revolutionized the way we buy has now gotten serious about selling the ads that tell us what to buy in the first place. It is selling advertising on Amazon.com, encouraging brands to create Alexa “skills” so they can market to people when they’re at home, and putting targeted ads on the main screens of its Amazon Kindles, tablets, and televisions. And it’s attracting money that brands used to spend on Facebook and Google.

On Thursday, Amazon reported that the category of its business devoted to advertising and “sales related to our other service offerings” made nearly $2.5 billion in net sales in just the third quarter of 2018. In the third quarter of 2017, it made less than half that, $1.12 billion. A September report from eMarketer estimated that Amazon is now the No. 3 digital-ad seller in the country, behind Facebook and Google. Brands will spend $4.61 billion advertising on the Amazon platform this year, the report estimated. Mike Olson, an analyst with Piper Jaffray, anticipates that Amazon’s advertising revenue will reach $8 billion this year, a number that will double to $16 billion by 2020, and that will soon overtake in profitability Amazon’s big moneymaker, Amazon Web Services, which sells cloud-computing services.

More here.

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44 Comments

  1. We are heading towards an age of Amazonian hegemony in the retail world. Amazon’s control of the retail market is growing to near monopoly levels. They have done this by encouraging consumers to rely on Amazon alone for all their product needs. As of, “… the fall of 2016, the share of online shoppers bypassing search engines and heading straight to Amazon had grown to 55 percent,” This reliance is exacerbated by Amazon’s use of advertising. As described in the article, Amazon uses a user’s search and purchase history to constantly market new products to them. This superior integrated advertising draws many companies to offer their products on Amazon.com, “…thousands of Amazon’s competitors—from small independent retailers to major chains and manufacturing brands—have felt compelled to join its orbit,” This gives Amazon the power to control the prices that consumers pay for products and to control what products consumers see “As more third-party sellers have agreed to sign up for these services, Amazon has repeatedly raised its fees,” This level of control over the industry is dangerous. It consolidates power into the hands of one company by driving competitors who can’t compete with Amazons pricing and marketing out of business.
    Another aspect of this monopolistic behavior is that Amazon is not limited to the retail industry, “Amazon has its tentacles in various industries — retail, cloud services, grocery, content, ebooks, home assistants, and, most recently, pharmacy,” This allows Amazon to offer prices that its competitors can’t compete with. However, as more competitors leave the market, Amazon gains more control over the pricing of goods. This means that as the company grows larger, the more monopolistic practices it will be able to partake in, “[Amazon] is expected to be responsible for about 49 percent of all US e-commerce sales in 2018, though it’s still just 5 percent of all retail sales,” This demonstrates that even though Amazon does not control the retail industry yet, it still has a staggering amount of control over internet sales. At the moment, Amazon is not a true monopoly. It still has viable competitors in its various industries. However, it is poised to become a powerful monopoly. To use an analogy, every tree starts as a seed. Even though Amazon is not a monopoly yet consumers should still be concerned about how powerful Amazon will become in the future.

  2. Throughout this article, Alana Semuels explains that Amazon is starting to veer towards monopoly-worthy territory due to its overtake on the advertising industry. Because of its marketing strategies, Amazon is known as one of the big four for a reason: its ability to bring consumers what they desire. How do they find out this information? Through algorithms which track buying habits and clicking habits in order to recommend the next best thing for your needs. This is also bolstered by the success of speech-recognition devices such as Alexa which help you track your previous statements to her. This allows Amazon to have a sense of the type of person you are and is able to recommend a product proportional to your needs. While this does increase consumer satisfaction along with revenue, the important thing to remember is the boundaries user tracking has on the internet. On a level such as Amazon, the negatives of user tracking can’t be found because Amazon has already warned its consumers about what the fine print reads, specifically that Amazon “is not in the business of selling it to others.” In another company’s case such as Google, they tend to create some sort of tension between consumer relations due to their stress on privacy and security.
    However, Amazon still stresses security but doesn’t have consequences as devastating as Google. If Google were to be hacked, who knows who could have their identity incriminated. Amazon specifically focuses on the buying habits of people, and if those algorithms were to be released, that information would most likely be useful for other companies so they can fit the molds that their consumers customized subconsciously. While it does violate Amazon’s privacy and sense of security which makes the hacking immoral regardless, will the information leaked be of any use to the common person? I wouldn’t think so.
    On a personal level, I believe that the buying habits of Amazon should stay the way they are. While they should inform the consumer of their practices, it is also okay to collect information on a consumer if the tracking is used for beneficial purposes. As I’ve stated many times before, it is not the information that is the problem, it is the security that protects the information that is the key factor in user tracking activities. If buyers were to be aware of the problems that could arise from the leakage of their information, they could shut up and protect their digital identity completely, causing faults between business cycles for both major and minor companies. In another way, consumers could actually step up and educate themselves on the main problems of the digital era by learning how things on the internet work.
    Overall, cybersecurity is an important thing in the world, now more than ever. Without it, the internet wouldn’t be what it is today, and technology wouldn’t be nearly as efficient as it is today.

  3. I’ve said this plenty of times before in person to plenty of my peers, but I will say it once again in this blog post to have it on record: Amazon will take over the world.

    By that, I don’t mean anything like something from the movie iRobot, where Amazon creates it’s own self-aware androids and we have to resort to Will Smith saving us once again, I’m referring to that Amazon will join the ranks alongside able to become one of the most powerful and well-known conglomerates history as ever seen.

    There are plenty of reasons as to why I think this will happen, starting off with something they somewhat touched on in the article: the amount of products and services amazon produces under their own branding, and they business partners that they have a reciprocated business relationship with. Amazon’s services that they coin themselves are too versatile to the point where it is bound to make any customer cave into something you may not need. For example, sure; you may not NEED to get your groceries shipped to you and delivered within 12 hours, but Amazon Fresh might tempt you to unnecessarily order groceries in your pajamas without getting dressed or wasting that precious gas money. If you combine that with the fact that amazon has a can’t-stop-won’t-stop approach with advertising, it’s easy to see why Amazon can (and will) only skyrocket.

    As the article states perfectly, Amazon is surprisingly still sneaky, and the way they do this is to establish two main components that are hard to find in today’s online shopping climate: convenience and reliability/trust factor. Amazon’s stuff that comes through Amazon Prime (think a premium version of Amazon) only takes two days to reach your doorstep, and it can literally range from something as small as headphones to spare tires (as I’ve bought both from there). Amazon Prime and amazon’s reliable payment structure and return system really draw oohs and ahhs from everyone no matter the age or background.

    Ask any consumer that goes online to shop, they’ll probably tell you that Amazon is their favorite story. Pretty soon, we may see the internet ruin yet again more in-person driven jobs (a la Blockbuster via Netflix).

  4. When I think of the company Amazon, I generally think of things like the products they sell, the fast shipping, the video service they offer, and their book service. I usually don’t think of the efforts they put forth with advertising, although the article “The Amazon Selling Machine” may have changed my view in that way. From ads on their devices, played through Alexa, sent to customer E-mails, and being targeted due to purchase history and other information, Amazon certainly does put a lot of effort into their advertising.
    One of the things I found most interesting about this article was the statistics that they included about Amazon. An example of this is the estimated 4.61 billion dollars that companies will spend on advertising on Amazon this year. The sheer size of that dollar amount is impressive on its own, but the fact companies are willing to spend that amount, and surely expecting to make a profit off of that investment says a lot about the amount of money spent and made in sales through Amazon. Another interesting stat worth mentioning is that they have become the third largest digital ad seller in the country, behind Facebook and Google. The fact that Amazon is competitive with giants such as Facebook and Google in an area where they excel, while also competing against companies such as Apple in the sale of tech products, competing against grocers in sales of foods, and more. This truly speaks to Amazon’s size, and reach across multiple markets, with their advertising efforts aiding them in all of these areas.
    As I previously stated, this article had an effect on how I view Amazon’s advertising, and it also caused a bit of reflection. I began as an Amazon customer as a kid who loved to read, and wanted to try using an e-reader. I bought an Amazon Kindle Paperwhite, and from there began viewing ads that would pop up on my screen, and buying e-books from Amazon to download to my Kindle. Once I was old enough to have my own debit card, I already had an Amazon account and was able to link my card, and buy things when I had the money. As I have gotten older I have only come to rely on Amazon more buying electronics, food, school supplies, and more. And all the time I have gotten suggested ads from Amazon in E-mails and otherwise, many of them being very accurate, and things that I do want to buy. This has made me realize that I am an example of the effectiveness of Amazon’s advertising efforts, something I hadn’t really paid attention to previously.

  5. Honestly, this is not a bad thing. I think their advertising model is genius and is extremely effective. The only thing people have to complain about is that their information is being used to advertise things to them. But the genius in their advertising is that they actually show you things that you want to see. Unlike many other advertisements, the products that it shows you are things that you will be interested in based off data research of what you like and are interested in. Ads are everywhere in this day and age. As the article said many outlets of media survive off of advertisements. So we as a generation growing with all of these online forums are used to ignoring a lot of advertisements because most of it is things that we do not care about. But if we have to be forced to look at an ad either way, would it not be preferable to view an ad that actually peeks your interest? To me, I would rather see something that I like than something I will never want or need to buy. Amazon and Google have found the optimal way to advertise and it is effective. Many people will argue about the privacy of our information, but I personally enjoy the services that come from these platforms having my data. I think the solution rather lies in making their security of this information better, so that the information never lands in the wrong hands.

  6. Amazon is a behemoth of a company that has generated billions of dollars and cater to many people. They have become a gigantic enterprise that everyone in the world, with access to the internet, depends on for a variety of products. It could be as simple as laundry detergent to buying a couch for one’s home. Amazon has become a staple in providing all sorts of goods for consumers. What makes them such a powerful e-commerce company is that they practically have Everything from the product on sale to delivery, Amazon controls it all and runs it very smoothly. I can attest that Amazon is one of the most reliable companies that truly want to help customers and their experience.
    I was very surprised to read from this article that Amazon owns Twitch, Audible, and IMDb. Very well-known sites and companies which were a very smart move for Amazon to buy as they are profiting in different areas than e-commerce. I was even more surprised to read that Amazon became the number three digital ad seller in the United States. To think that Amazon is only behind Facebook and Google is mind-blowing to me. Google is also a behemoth of a company that is behind the Google search engine and YouTube. I personally use YouTube, practically every day, and every viral to simple videos have Ads in the beginning. Many companies make money through youtube so Amazon doing such a thing is no surprise. I can see how Amazon can litter different ads onto their site. I can also see how Amazon can put ads into their own product lines such as Alexa or their kindle.
    I believe it to be genius that Amazon tailors the Ads to each customer based on what they search for, their gender, or age. They have a database that contains all their customer’s information to what they buy. Such tricky information can be sold to third parties or generally used for something other than the company stated. Yet, I thought it was very admirable that Amazon guarantees in their privacy notes to their customers that they will not sell this information to third parties or use it for anything other than what they intended. I believe many companies should follow Amazon because the customer or people’s sensitive information should be secured and never used for the wrong purposes. This is more apparent as the internet grows and human beings integrate what they do and who they are into it.
    However, I had no clue that Amazon was very Ad heavy with their own product lines such as a Kindle or fire tablet. I do not own a Kindle or a fire tablet so that the idea of a home screen constantly with an Ad is very bothersome. To read that Alan Semuels had this specific problem of constant Ads on his Fire Tablet and many others too. I do not think I can buy these Amazon product lines and be constantly troubled with Ads. I also believe it to be quite unsettling that Amazon tailors these Ads to me and are constantly watching or storing the data of what I am doing over the internet. I do not like the idea of someone or a company stalking me, I have the right to my own privacy. Amazon is monster of a company that is constantly growing; It was forecasted that Amazon will receive sixteen billion dollars in advertising revenue is mind-blowing. I am curious to see from now on what Amazon plans to do in the future of advertising and technology.

  7. Amazon is making a good move financially by taking every chance it can to turn a profit. The company is in a unique situation. It is one of the most valuable companies on the planet with millions of shoppers navigating its site each day. Realizing its massive traffic volumes, it is capitalizing on making advertisement revenue while also boosting potential sales on its website. The downside to this massive advertisement boom is the potential negative affect it will have on customers. Internet surfers hate unwanted pop-up ads that appear on their screen. Online shoppers that have in mind of what they want to buy also dislike the ads Amazon displays on their website when they are browsing. If they want just a bicycle helmet they might not want some knee pads or cycling gloves that is advertised. The advertisements become overburdening and will deter further customers from shopping on Amazon.
    The amount of data that Amazon has from its users is astounding. Amazon keeps records of different users purchase history, browsing history, and even their address information. The vast amount of information Amazon has allows it to precisely tailor ads to the different shoppers’ desires on the website. This is beneficial for Amazon and the companies that purchase ad space as these companies stand to make more profit at the expense of the user’s inconvenience. There should be ad space on Amazon however it should not be so constant and predatory on consumers that shop on Amazon’s website. If Amazon wants to keep loyal customers in the future, they need to treat their consumers with respect and decency.

  8. “Amazon is so convenient, so trusted, so everywhere” and it is eye opening how Amazon really is everywhere. Before this article, I thought that Amazon only owned Amazon Prime and Amazon Alexa, but they also own Whole Foods, Twitch, Zappos, Audible and IMDb. Amazon has really taken over the shopping industry. With Amazon growing I do fear that “the system will grow more and more adept at pushing our buttons, putting in front of us goods and services that are closer and closer to what we actually desire” and not exactly need. In doing this, I believe it will cause a problem for many people seeing as they will binge spend on what they want, not wasting their money, but spending it on items that they do not actually need. This only increases Amazon’s profit on certain things while taking money away from the people. One problem that I do see becoming very prominent to the Amazon customers is the fact that when you purchase something like the Fire tablet, which is much cheaper than a brand new iPad you will have to see all of the Amazon ads. In the article it said that “before you can access your home screen, you have to swipe out of a full-screen ad” which will get very annoying seeing as though you do not want to see the ad and be tempted to purchase something else but you would like to just open your tablet and read your book. Amazon is able to sell their products so cheap because they make money off of the ads put on their hardware products that the consumers cannot escape. Also in the article it spoke about how the ads are directly targeted to what is happening in the life around you, “I’ve received a steady stream of ads from Ben Bridge Jeweler and Allstate, which is a little unsettling because those ads seem spot-on for someone who recently got married, as I did”. Personally, I do not own anything Amazon other than their only shopping Amazon Prime account. The reason for this is Amazon is always listening whether it is Alexa or the Fire tablet they are looking. I do not want their devices to be peeping in on my conversations at all times of the day. Amazon is invading my privacy. By Amazon putting their ads on most of their devices, it is now turning most of their customers and others away from wanting to buy their products. This is as expected seeing as though no one wants to be bombarded with ads whenever they are using an everyday Amazon product.

  9. Amazon is a company that launched its business based on e-commerce. We can see through that article that the company’s success is not completely related through the e-commerce activities. Amazon has been sold for a long time as the company (or the website) where you can find anything. However if we go more in details, we can explain Amazon’s success through few other factors. First, Amazon has emphasized the customer experience as the heart of its process. By proposing, free delivery, next-day delivery and now the very day delivery in less than an hour, Amazon has rapidly created a value that differentiates the company from competitors. Amazon was not only the website where you can find anything but also the website which would satisfy its customers through a delivery process unique and unequalled. Contrary to other brands and companies, Amazon started from the principle that to be market leader, the focus of the company would not have to be on the profitability but on creating customer loyalty through targeted marketing and a real customer relations instead. Amazon was able to invest money in pertinent websites as well. GoodReads, RottenTomatoes, IMdB, which are references in terms of website for cinema. Those websites are particularly useful because the audience is important but also because there are a lot of data users. Through these websites and the personal data, Amazon gets to know the customers and use targeted marketing to show ads related to what they like in order to push them to make purchases. So, as the article mentions, Amazon follows Google’s business model that is, making money through advertising. But Amazon is also a company that innovates. They have been successful with their Amazon kindles, with the smart vocal assistant “Amazon Echo”. They try to compete with Netflix with their streaming service Amazon Prime Video. Amazon has different projects still in the pipeline with the delivery by drones that could revolutionize the customer experience. They also think about a supermarket without cashier baptized Amazon Go where people could do their grocery shopping without having to worry about waiting in a line to pay. Innovation, advertising and a strategy based on the customer experiences are ones of the main factors that made Amazon such a successful company. According to Barclays, it could even be the first company to worth more than 1000 billion of dollars in the future.

  10. Amazon is becoming a tech giant, and not just in the aspects that we would expect from the already uber-developed company. The company is becoming an advertising juggernaut, something no one would have predicted. They have become the 3rd largest advertiser behind the likes of Google and Facebook, and their advertising is continuing to grow. From just last year, the company has doubled its profits and are predicted to almost quadruple that by the third quarter of 2020.

    The reason that Amazon has had such success is their connection between their many different products. Amazon has the ability to advertise to you on many different platforms including the Kindle and Echo, as well as many different services that they own such as Twitch or IMDb. Not only that, but the other factor that leads to their success is the access they have to our information. They know where we live, what we buy, what we send, who we send it to, etc. Using this information, they have the ability to advertise products to us that we didn’t know we needed, but end up buying anyway.

    I believe that for Amazon and their shareholders, the growth is only going to benefit them. As Amazon continues to grow and develop more, their power over the advertising market will grow superior. They eventually will end up being monopolistic over the market, where they surpass Facebook and Google. For Amazon, the benefits will be plentiful. However, the rest of the market should be very cautious and prepared, because the inevitable market takeover by Amazon is coming, and when it does the future for Google and Facebook will have to go in a different direction.

  11. The article, “The Amazon Selling Machine” by Alana Semuels, really focuses on how Amazon can eventually become a monopoly. The large amounts of revenue made by Amazon’s advertising and sales department is astonishing. As Semuels explains about nearly half of online shoppers begin their search at Amazon, and I believe that this may be an understatement. The whole discussion over data collection and privacy is definitely a prevailing theme in this article, despite how much praise Amazon receives. One point made by Semuels that jumped out at me was actually how Amazon collects data other than through their website. Semuels says, “It collects information about what we watch on Amazon Video, what we read on our Kindles, what we listen to on Audible, and what we ask our Echo speakers.”, and I never realized that these devices made by Amazon are also collecting data. This is of course along with information Amazon gathers from our search history, delivery addresses, and other information consumers put into their website. I could not believe how many different ways Amazon can collect data. This makes me curious about Amazon compared to Google, another large company that collects consumer data. Google has taken measures in order to protect its users and is continuing to try and achieve the goal of keeping sensitive information safe. Semuels makes a good point that Amazon is so trusted and that their data collection generally does not include any sensitive information, but with Amazon’s massive growth they should be considering their user’s privacy in their data collection methods.

  12. Amazon is a brand that has truly taken off thanks to their out of the box thinking and incredible marketing skills. While borderline invasive, the brand uses data on their customers to suggest additional products for them to buy. Additionally, all Amazon product users are bombarded with ads to continue to sell products to them. I think this idea of using data to market to customers is a novel approach to using a standard marketing strategy for all people for a product they may not be interested in. This is more efficient because the company is able to truly reach their customers interests and have a chance at them buying more products from them. I can see why some users can find this type of marketing as invasive, however I do not mind it.
    I feel that, like a lot of online platforms these days, we agree to a terms of service that allows companies access to our information. By agreeing to this, I feel that we are allowing them to have it and how they use it is up to them. If it truly bothers a person, then I feel that they shouldn’t agree or use these services.I find this feature from Amazon helpful, especially when I am looking to buy another item from Amazon and am able to access it quickly. In today’s day an age, I think that society has to be comfortable with the use of technology to find our needs, as this idea does not seem to be going anywhere soon.

  13. This article presents us with another area in which Amazon can exploit to make billions of more dollars! As an avid Amazon user, I always look to Amazon first when online shopping. The article stated that 50% of online shoppers look to amazon first which is shocking! Amazon has such a large market share and dominance over their competitors that they have 50% of the market searching with them first.

    And this rapid increase of online traffic to Amazon brings us to the main part of the article which is advertising online. I think one of the most interesting points of the article was at the end when the customer’s tweets were shown. The tweets were filled with genuine frustration at the number of ads shown on the amazon devices and how they were still seeing ads after paying the 10 euros to avoid seeing ads. While Amazon has a great opportunity here to increase their net profit by increasing the ads ran, they must keep in mind the customers’ perspective. Yeah, Amazon can fill the page with relentless ads that just keep reappearing, but then there would be a decrease in traffic on the website. Customer would begin to be annoyed with how many ads they see and stop visiting Amazon. I think this is an interesting point which Amazon needs to focus on when looking to the frequency people see ads.

    Besides balancing the ads shown with people’s tolerance of the ads, there was an interesting point within the article about Amazon’s devices and their cut prices due to advertisement. Amazon is able to undercut the price of the substitute device, such as the amazon kindle, because they are able to run advertisements on them. Amazon could go as low as losing their profit on each sale of an Amazon Kindle, as long as they were able to run advertisements on them. Amazon is able to make profit off of each advertisement ran, and with an increased amount of amazon kindles out on the market, the profit per advertisement would increase because more people would be seeing it. I think this is an interesting concept because other companies may not be able to match a price of a substitute good to the amazon kindle because they do not make money from advertisements as Amazon does. I think this is leading to a slippery slope, and something that competitor companies need to look at before Amazon squeezes their products off the marketplace. I love to read articles about Amazon because of their immense business opportunities and areas of growth.

  14. I found this article to be very interesting and learned a lot about the how much revenue Amazon makes on advertising. The article mentions that Amazon will make eight billion dollars next year just for advertising. I can understand how there are positives and negatives on Amazon using search and browser history to create personal advertisements. I personally think the advertisements that are personalized for me, usually help me find what I’m looking for faster on Amazon. I think Amazon’s advertising helps customers choose a good product at a cheaper cost in less amounts of time. Even though I find the advertising to be helpful many people feel their privacy is being violated and there is too much advertising on Amazon. I also found it interesting the article mentioned how half of online shoppers start their search on Amazon.
    I recently read an article “A Simple Guide to Amazon’s Complicated Advertising Business” by Forbes, and the article explained the strategy of Amazon’s advertising. This article went more into depth about the types of advertising used for different products on Amazon. The other article also discussed the other companies that Amazon owns. I did not know Amazon owns a lot of other companies and that also gives them an advantage when advertising. Personally, as an Amazon user I like that advertisements that are personalized for me and I think it helps find products that I can use.

  15. With Amazon being able to find out what their customers want and need, they are able to expand their profits and create greater success in their company. This is actually beneficial to both the company and its users. Users are able to see what they want to see specifically, and will enjoy getting the certain new items that they want. When we are exposed to more ads, we do not need to see it as a bad thing. We can see it as a way to get the things we want and allow us to open up our minds more. If we see a suggested item to us on Amazon, it allows us the opportunity to benefit our lives whether the item tends to be for happiness or our own personal convenience. Both Amazon and its users will be happy in the end, because they both will be getting what they want. Now the only problem that this may have on users is that it may drain their wallets from seeing things that they want and buying them, however we should know our standards and limits and should take full responsibility in what we do online.

  16. I found it surprising that Amazon generates that much revenue from advertising alone. I am aware that they are arguably the world’s largest online seller of various items, but the number they earn from the advertisements is crazy. Even after the company experienced a decline in stocks about two weeks ago, according to Independent, they are still a mogul in the business world. The most intriguing part of this article is that the company has the ability, through their technology, to present to its customers products that they want and need. At least, present products that are closely related to what they are looking for. It is definitely a unique way of targeting the customer.
    Reading about the one parent who bought Amazon devices for their kids, and then had to pay 10 English pounds to have those ads that pop up at the home screen disappear, was unbelievable. Even after doing that, the ads still popped up. Plainly put, it is not fair: the person paid to get rid of the ads, just for them to continue. However, even if this person did have them removed, Amazon would still receive an absurd amount of income in the form of advertising. All in all, Amazon has proven that they are dominant in the advertising game, relative to Google and Facebook, and it seems that they will still be on top in the years to come.

  17. This article focuses on Amazon is marketing to these certain people and makes them want to buy a product. In the third quarter of 2017 when Amazon made only $1.12 billion, they decided to increase more of their advertising and market to people they know will be interested in buying things. Considering they are spending $4.6 billion in advertising, it is estimated they will make an incredible amount of $8 billion by the end of this year.
    Amazon being one of the top online retail stores, they have an advantage on creating a skill that they can market to people when they’re at home, and putting targeted ads on the main screens of its Amazon Kindles, tablets, and televisions. With more and more people purchasing online retail, Amazon can use this to their advantage by increasing their advertising. This is a good strategy that Amazon is using in order to increase their profits. Even though the advertisements of the company can be a good things overall, some people might get irritated by constantly seeing Amazon ads of things the person might be interested in.
    I personally enjoy the fact that Amazon can narrow down my searches to what I like to buy and the things I am interested in. I have seen this effect on many online sites whether its Facebook, Google, Instagram. When I have had a recent search history of lets say a dress through a store, More clothing ads similar to the dress will come up on my social medias etc. Like Alex Salkever stated, “It was very hard not to click. I definitely agree with him that if a person is in the mentality to shop, they will majority of the time click on those ads involving things that they like. Personally, being an online shopper, I thoroughly enjoy that Amazon want to continue to improve brining their customers new and more relevant purchase options. This makes it a lot easier and convenient for customers, if it only take 5 minutes to find a product and purchase it like you can already do on their site.

  18. I definitely feel that the growth of Amazon is something to be concerned of for the sake of other businesses, as well as consumers. The power that they have in regards to their vast array of products, convenience and connections to other big companies make it as close to a monopoly that is permissibly legal. The increase in money that Amazon is receiving for specific targeted advertisements by companies in comparison to Facebook and Google show that the companies purchasing these ads have found a better outlet that allows the consumer to purchase instantly from the source of the ad. Basically Amazon is getting paid to tell us what to buy, while also making the transaction for said purpose. If enough companies take this much interest in Amazon, we may soon be asking our Alexa’s to fill our prescriptions and the new currency of the United States will be Amazon Pay. Instead of backing Amazon, other companies should be trying to compete with them and create a fair market. Obviously this isn’t a perfect world, but companies may wish for that fate if they soon will have to depend on Amazon for their success.

  19. Amazon is well on its way to becoming a complete monopoly in the retail world. Slowly over the course of the last few years, the iconic brand names and superstores that have been namesakes in malls everywhere are closing their doors. Amazon Prime has rendered these in person locations obsolete, and now with Amazon’s venture into smart technology, there is hardly a facet of business that they do not have their fingerprints on.

    A lot of their business revolves around user preferences. Basing what people may purchase relative to prior or current purchases takes full advantage of so called “impulse buyers”, the Amazon machine has no signs of slowing down. Making multiple billions of net sales each quarter on a consistent basis allows Amazon to continue to tinker with its consumers however they wish to do so.

    Combining their sales success, ad success and aspirations to develop, Amazon will certainly find themselves competing with Google to become a monopoly across multiples business areas.

  20. Amazon is a giant when it comes to selling things to us. My first thought whenever I begin any sort of purchasing process is to check on Amazon first. Not only am I usually able to find what I want from the site, but I am always prompted with several related products that I never even knew I needed until that moment. Of course, this can get a little dangerous for my wallet especially when I find myself just shopping there out of boredom. With this type of consumer mindset, it is almost a given that the site and all of its services are a favorite of advertisers.
    It’s interesting to see that this post shows the future predictions from Amazons advertising net sale revenue. I think that with the speed that Amazon is moving and how it is constantly making disruptive innovations in the world of advertising, there is nowhere to go but up. I’ve recently read about how they have begun new technology to sense changes in our voices through Alexa to market medicine to us and while I do think that this technology is invasive, it’s just another way Amazon is paving a new road for their business.

  21. Amazon is a power company, and they are often competing with lower priced companies like Walmart and Target. However, recently Amazon initiated its grocery service, and high end product sales. Now Amazon caters to almost every buyer. This makes Amazon a force to be reckoned with. A helpful device that makes Amazon so powerful is the use of Alexa. With Alexa, a consumer can say things like “Alexa, put a pair of headphones in my cart.” This makes shopping easy and fun. The use of Alexa also merges internet and actual shopping together. While the consumer is still shopping online, they are interacting with Alexa in order to do so. In today’s world, consumers want easy shopping. By having recommendations and a constant “personal shopper” Alexa is providing that.
    Because amazon is so convenient and powerful, it would make sense that it is one of the leading ad sellers. Many consumers would type a product into amazon, or use the scanner on their app, to see if they can find that product. Once it is found, the consumer is almost guaranteed to find it on Amazon, full of pictures and reviews about that specific product. With this data, Amazon is able to send targeted ads to customers. Although this seems a bit of an invasion of privacy, Amazon does not have nearly the amount of security breaches as Facebook does. It seems like consumers know they can trust Amazon. Because a customer knows that they are already going to shop on Amazon.com, having ads targeted to a specific person can making the shopping experience better.

  22. I have always wondered how Amazon has become so powerful so fast probably more than any other company has before. Alana Semuels paints a vivid picture of how Amazon came to be. Other than having a simple and easy buying process, Amazon knows their customers better than anyone else does. This is what gives them an advantage unlike any other. Amazon takes customers to their aisle, selects a product, walks them to checkout, assists with the purchase, and then takes the product to their home in a timely manner better than anyone else. They know that customer before they walk into the store. It is really amazing how they collect information and use it for better or worse. As Semuels mentioned, Amazon now owns Whole Foods, Twitch, Zappos, and more. This only broadens their network of information. They have an expanding field of customers that they strive to learn about the second they make a search on their website. Amazon truly embodies the “customers first” saying. However, as Semuels writes about, Amazon can go too far in their pursuit of customer knowledge.
    Too much advertising can clearly take away from customer experience and drive away the same customers that Amazon is learning about. If Amazon doesn’t learn that customers do not like excessive advertising, regardless of view, they will lose customers or gain dissatisfied customers that will not be as inclined to but from Amazon. Similarly to YouTube and Facebook, intrusive advertising can be harmful to a business. Amazon knows their customers better than anyone, but this should not come at the expense of their customers. The example of the English man who bought a tablet for his child is a perfect example of taking it too far. The tablet became more of an advertising device and eventually drove away the man from buying Amazon products in the future. Amazon should learn from YouTube and Facebook in their approach to ads and getting to know their customers better. The company is extremely successful and has the potential to be one of the largest ever. If Amazon can put their customers first, like they always have, and limit invasive advertising, the company can benefit themselves and their customers.

  23. The glory of technology these days means scrolling through your internet searches while being hoarded with numerous ads of previous searches. It always happens no matter what website you click on, you could be watching a YouTube video and on the side of the screen is a pair of shoes you looked at a week ago on another website. Amazon however, seems to be a completely different monster. The company sells lots of products from thousands of companies, but their best trait is selling their own products that are designed to keep you buying more products off of their website. Imagine buying an iPhone and constantly seeing ads pop onto your screen while trying to respond to mails or text messages. People would be irritated with Apple so quickly and would demand a change. Somehow not many complaints have been made about Amazon using this strategy, instead they buy more products. As the article stated, more companies are starting to pair up with Amazon to have “Alexa” compatible products and those can be seen in many stores, even the store I work in advertises Alexa related products. Although they said the echo device could use ads to help with things such as shopping lists for special deals, any further use of ads could start to irratate customers much more. Amazon needs to be cautious, successful ad ideas in the past won’t necessarily mean a happy customer base with even more ads on products they didn’t expect. Any further annoyances will definitely cause customers to try and find new alternatives to their devices, especially in a world fueled by convenience

  24. Amazon is taking over the world. They control so much of the online shopping market it is insane. Now with Amazon Prime, I find myself spending money on stupid items that I do not need. Amazon even has a new feature that includes 1 click purchasing. This means while viewing the item you may purchase, you can click a button under add to cart to have an order placed immediately. This is dangerous when combined with Prime because it makes the purchasing process so simple and easy.

    Amazon has made around $2.5 billion in the third quarter of 2018 from sales from sales advertising service offerings. In the third quarter of 2017, it made less than half that, $1.12 billion. This means that with so many people buying into what Amazon is trying to do. I do not know what is next for Amazon, but I do know the sky is the limit. So far, Amazon has achieved a lot, but they are no where near done yet.

  25. Amazon’s strategic and precise advertising is definitely a result of the unique advantage it has over all of their other competitive market. Utilizing their secret weapon “Alexa” and getting other companies to become compatible with the technology makes Amazon even more powerful in being able to influence consumers in choosing what they purchase. Being able to target consumers with specific information that is personal to them helps Amazon make more of a profit than they would without it. While some consumers may be pleased with an ad that conveniently caters to their needs, others may very well be understandably unhappy. Amazon is able to be so precise in forecasting consumer needs and knowing which ads to target certain consumers with by using each customer’s data from their search and purchasing history.
    The main concern regarding Amazon’s ability to utilize consumers’ information is if there is any type of violation in how Amazon is using this information without consumer consent. It is truly a question of whether or not Amazon owns that information which should honestly looked into by consumers who are frustrated with Amazon’s ad targeting approach to advertising.

  26. Amazon has been at the forefront of technological innovation, and has become one of the largest corporations in the United States in just a relatively short time span. The concern of data privacy becomes increasingly prevalent as the cost of collecting massive data becomes cheaper. Alana Semuels’ article from The Atlantic raises an important issue related to data integrity. One of the most unfortunate drawbacks of the internet is the ability to easily collect data. This circumstance is dangerous because it opens up the opportunity for companies and websites to exploit data. I think there is a major issue concerning the manner in which data is collected and used, however, I do not agree with the arguments presented in this article.

    The concept of companies collecting data related to consumers addresses, families, and financials is nothing new. Retail stores, bank institutions, and government agencies have been collecting and using information on consumers for quite some time. In some cases, collecting is required, and in others, it is done for revenue purposes. Before technology become effective in collecting data, retail stores utilized store discount membership cards as a tool for gathering consumer information that could be used for decision making. The article raises an argument about Amazon knowing “where we live… when we write reviews and what we think of those products” like this circumstance is something dangerous and new. In order for any company to ship a product, it must gather information on our address. In fact, I sure hope Amazon is taking my address when I purchase merchandise off its website. Furthermore, utilizing customer review data is a valuable for both a business and a consumer. This data informs the business on areas that need improvement, new recommendations, as well as aspects the company performs well in. While extensive use of targeted advertisements might feel invasive and creepy at times, I think this circumstance is the cost of having services such as two-day shipping and social media. If companies like Amazon and Facebook were not allowed to collect data and advertise the way they do today, then I do not think there would be any incentive to provide the services we enjoy from these companies. Reduced to its core, the purpose behind advertising is to persuade somebody to buy a product or service, which is essential for capitalism to thrive.

    I think the more important issue that our Federal Government needs to address is implementing a process for ensuring websites hosts abide to a code of ethics in collecting and using data. The only type of plausible regulation I see in the near future is to hold internet platforms responsible for their process in using and collecting user data, which would prevent situations like Cambridge Analytica from occurring. However, I think regulating the internet is a difficult task and the government should be very careful, as well as reactive, when regulating the internet.

  27. Amazon has completely changed the game for the way consumers shop today. Amazon learns a consumers buying habits from what they have previously bought, and taking that information by being able to advertise something that the consumer would want to buy next. The way Amazon advertise is so in a consumers face that it would make sense to cave in after repeatedly seeing the same images over and over. Another way the company advertises so heavily against competitors is through the products they sell as the article mentions. The writer expresses, “The devices I bought from Amazon, on Amazon, are filled with ads Amazon also makes money from—ads that are targeted with the remarkable precision of a company that has quietly come to own a staggering proportion of my purchasing decisions”. This is just yet another way Amazon differentiates themselves from competitors by taking it a step further to therefore advertise on the products that consumers buy from the entity. With all of this advertisement that Amazon is broadcasting, this is an essential heaven for companies that are looking to advertise. Companies that are looking to broadcast to the world their new products or have created a new ad have a central hub they want to be able to advertise on, which is Amazon. This also completely changes the way that our buying market functions, that companies looking to advertise are hoping to be able to score with Amazon to advertise their products on. Knowing that if their ads end up on Amazon they basically are hitting most of the market of consumers. All of this just clears to show that Amazon is truly taking over.

  28. Just like google, and our TID where unilateral contracts were discussed, it is really scary to see how Amazon has so much information on us where it almost feels uncomfortable. Like an invasion of privacy. Amazon knows the types of products people order, the types of movies we watch, the types of music we listen to, the books we read, etc etc the list goes on. Due to this knowledge, they can suggest products to people that people did not even thing that they needed. I think that this is pretty cool that algorithms in this companys servers can figure out so much about ever customer, but at the same time I do not like the idea that so much about me can be known by a company. As the article says, “It’s both eerie and comforting. We can be marketed to throughout our day—when we’re reading, watching TV, cooking dinner, browsing the internet—and we might not even mind it, because the ads we’re seeing are for things we actually want.” If cute clothes are popping up in my advertisements then I would not be mad at all and I have actually spontaneously ordered things from Instagram ads etc and I end up loving it. If I get an advertisement for something I was speaking to my friends about the day before or searching on the internet then I will feel an invasion of privacy. Not only is this affecting customers, but also other companies such as Facebook. The article states that, “There are other reasons Amazon’s ubiquitous advertising may face consumer backlash. Facebook, for instance, lost some big advertisers after the company admitted that Cambridge Analytica accessed information about 50 million Facebook users without their knowledge. Amazon’s privacy notice assures customers that though it collects data about them, it “is not in the business of selling it to others.” But it does say that it targets users with specific ads, based on information Amazon has collected—and it collects lots and lots of information. Sometimes, Amazon says, it receives information from third parties about what other sites customers have visited and what ads they’ve seen.” The idea of companies selling my interests and information to each other for business is definitely discomforting, and Amazon as a whole is definitely taking over everything, which is why the name of this article is perfect.

  29. It is pretty amazing to see the photos of Bezos’ business in the 1990s and compare it to the goliath Amazon is today. My favorite part of the photos is probably the text “amazon.com” crudely spray painted onto a board behind Bezos’ cheap desk. Amazon has gotten to where it is today by what this article is describing. This is, utilizing targeted ads to encourage customer so buy crap they don’t always need.

    One great example that the article skipped is Prime Day. One day per year Amazon puts together some deep discounts on a short-list of items. “I got it on Prime Day” is a quote I have actually heard a lot from friends with a random mobile speaker, special mug or other uncommon product. What do all of these have in common? They were purchased on a whim. My friends, navigating to the website without specific wants, found these by scrolling through Amazon on Prime Day. No targeted ads required in this case, just the hopes of deep discounts the Amazon name brings. It is a part of our culture.

    On a similar note, last month I visited the Amazon four-star store in NYC. The store in NYC is one of a few in the globe with an interesting twist: Everything on the shelves in the store has a 4 star or higher rating on Amazon.com. They had everything from Harry Potter Lego sets to candles. Similar to Prime Day, I walked in without any specific wants and walked out with an umbrella. As a prime member, I scored a 60% discount on the umbrella in store. Fully knowing that Amazon was still making a profit on the item, I was happy to make an impulse buy.

    I did know one thing walking into the store: I was probably going to make a purchase. This goes back to the legendary status Amazon deals have in US culture. Plus, I trusted that the umbrella would work well, since it had a four-star review on the website. Amazon’s status as a household name and the widespread use of the website give it credibility that few other retailers in the world can tout.

  30. Amazon is now one of the top electronic American commerce companies in the United States. Because of my dad always talking and praising Amazon, I am very familiar with their CEO, Jeff Bezos, who is a mastermind and genius in this industry. Jeff Bezos made a complex idea so simple that millions of Americans use Amazon daily in the year 2018. A company that allows consumers to buy new or used products by also allowing the ability to have 2-day “prime” shipping by paying around $150 a year. Amazon is growing by the day, and Amazon’s advertising revenue is “reaching 8 billion.” That 8 billion number is going to double to 16 million by the year 2020. It is unbelievable to me how these companies spend so much money on advertising and are so good at selling their products that they still make profit. Amazon is also “creating Alexa skills” to advertise while Alexa is being used. Now, this might be a good idea but again, the privacy situation with these issues are suspect as Alexa already hears everything that is being said to the user. However, Amazon has done an excellent job so far in stressing security as compared to Google. If Google ever got hacked, who knows what would happen as Google is an online search engine but also advertises their products. Amazon on the other hand has never had an issue with being hacked, and like I have said before, the information is not the problem as the privacy of the consumer is the problem. However, companies use ads so more customers know about their product and tell the consumer their purpose. Amazon focuses heavily on convenience and trust as many companies do not this trust that Amazon has. Personally, I have never had a problem from ordering from Amazon as they rarely send a late package or something worth getting upset about. Amazon is competitive with giants such as Facebook and Google in an area where they excel, while also competing against companies such as Apple in the sale of tech products, competing against grocers in sales of foods, and more. What Jeff Bezos has done with Amazon as a company is life changing, altering the world for online consumer goods for the future. Amazon has set such a high precedent for those companies that will soon follow.

  31. It doesn’t surprise me that Amazon became the third largest digital ad-seller in the country behind Google and Facebook. As stated in the article, most individuals start their online search on Amazon. I can certainly relate to that, as I do the same. It doesn’t matter what I’m looking for online, Amazon is the first company that pops up on my web search. They have the best prices, fastest shipping, good packaging, and they do an amazing job for us consumers.

    That’s the reason why so many brands spend as much as $4.61 billion advertising on the Amazon platform just this year. Amazon has the ability to oversee consumer behavior on the internet. They know what we read, watch, cook, listen to and our overall browsing activity. No wonder that so many companies want to do business with them.

    Amazon provides to consumer what many companies can’t, safety and convenience. It’s comforting for consumers to not have to provide their billing information on several different websites. Even then, you never know what to expect. How is the product packaged, when will it get here, and how easy is it to return a product? These are questions you try to avoid, and the solution to this leads to Amazon. I have to admit, I’m excited to find out what Amazon will do next.

  32. Amazon has grown into a tremendous monster that runs through multiple businesses. They not only sell products and are able to target specific ads to customers, but have access to a ton of information we have willingly provided them. They are able to continue to make money off of every single one of us by selling us ads. It was interesting to see how some ads have been shaping the way they were once constructed in order to be more effective. This quote, by Helen Lin, stood out to me the most,“It allows a brand to be part of a solution, as opposed to pushing an ad message.” In the future, we will start shifting our concept of ads from “annoying” and pointless to actually being part of a solution to a problem. As Amazon continues to integrate their new acquisitions into their fast distribution system, they will help customers get products quick. Amazon has tested delivery in under an hour in some cities. Another key element Amazon exceeds in is having a “people also purchased this along with your item” suggestion section. I, myself, have bought from the suggested section since it went along with the product I was purchasing in the first place. It’s exactly what was stated in the article, Amazon knows what we want before we even realize it ourselves.

  33. I no longer get surprised anytime I hear that Amazon has done something to make themselves even better then what they are currently at. Amazon has taken all the advancements with technology and completely used it to their advantage. They realized that a lot of people no longer want to leave the comforts of their home and do most of their shopping there because they simply do not have to move. A few months ago I bought headphones that I was thinking about buying for a while and I said that I should probably go to BestBuy to figure out if I should get them or not. I thought about it more and said that I should probably check amazon first and sure enough they were there and at the same exact price, that BestBuy was selling them at. I ultimately decided to order it from Amazon because I did not have to leave my house at all and could stay in my pajamas. Not only was I able to not leave my house but the headphones literally came the same day, I ordered them in the morning and they came at night. I got them the same day because I had an amazon prime account. Amazon figured out that they best way to get to people in today’s day and age is to let them shop for anything that they could want and not have them leave the house. Anybody that has ever been on Amazon knows that they can literally shop for anything because they have everything that you could possibly think of. One of the best parts about Amazon is the fact that their return policy is very customer friendly and you can return purchases if you do not like them. I have used this policy a lot with Amazon especially when I bought headphones. The one time the headphones stopped working and I contacted Amazon and they sent me replacements ones, and all I had to do was send the broken ones back. Amazon really is an amazing company and I continue to expect them to grow and continue to shut down a lot of stores because Amazon is taking business from just about everybody. As long as people keep using the internet then amazon will continue to be utilized.

  34. This article was a great read because of the main topic spoke about in this article. The main topic was the corporation Amazon. Amazon has been a powerhouse corporation in America and globally for a while now even though they started off as a tiny business they expanded very quickly and took off and never cam down. They offer a variety of consumerism, whether its under cutting prices of products that are sold at a higher price elsewhere, or having an amazon prime membership which includes free shipping on all products. The CEO Jeff Bezos is a business tycoon always looking to expand his enterprise and he his always almost successful in doing so. By offering us recomended products while purchasing a product, as well as creating a network of memberships called amazon prime. Also another great business idea amzon had was to enhance their delivery systems to get consumers their products faster. These ideas all lead to consumer satisfaction which in hindsight increase sales and business. If you want to start a business and become a very successfull corporation look up and take notes on how amazon came to be such a powerhouse.

  35. This article displays that Amazon is on the rise towards true domination of the shopping industry. Amazon, a booming company is beginning to sell advertising, and make detailed targeted ads on the screens of people that are most likely to buy that specific product. This method is one that is rising because it is collecting money of famous companies that already invest in advertisements with Facebook and Google. Meaning, Facebook and Google now have a big name competitor when it comes to advertisements.
    In comparison of net sales in Quarter 3 of 2017, to Quarter 3 of 2018, there was a huge difference. There was over a $1 billion difference. Amazon has also reached a new title when it comes to who’s the biggest digital-ad seller in the country. They have now reached an impressive rank of the 3rd biggest digital-ad seller in the entire country, trailing behind Facebook and Google. Amazon’s growth is predicted to not enter any type of consolidation period, but rather have exponential growth over the coming years. Many experts predict that “Amazon’s advertising revenue will reach $8 billion this year, a number that will double to $16 billion by 2020.”
    Amazon is now able to sell almost anything you can find at the mall. In addition to the useful tool of data analytics, there is no stopping the advertisement goals of Amazon. Collecting and selling Data to specifically target which consumer will actually buy the product is what will make companies like Amazon flourish in today’s competitive market.

  36. The growth of Amazon from an online book-selling platform to the world’s largest online marketplace has been unprecedented and has become one of the most important phenomena over the 21st century. It holds tremendous power in the global economy and the economy of the United States alone, and has changed the way consumers shop for various goods, based partly in an aggressive and lucrative advertising campaign run by the company. One of the most fascinating trends I have noticed in my lifetime is how quickly consumer activities and trends change based on new technological advancements. In the digital era, we have drastically changed how we communicate with people, how we value our time, and most importantly, how we shop. My father made a living selling advertisements to the people of Los Angeles in his Persian magazine that marketed goods and services to the large Iranian community. However, our attention has been focused on digital media, with different websites offering the same services my father did at a much higher level of convenience, and even companies such as Amazon showing us advertisements that may interest us at times when we are not shopping. It is tough to see his business falter as a result of such advancements. But like Amazon, he has largely shifted his attention to a website that offers much of the same service, and although the revenue has been considerably less than years past, has kept his business afloat. What captivates me about Amazon is its ability to adapt and think ahead of its consumers and its competition in its attempt to garner more profit. It has already begun utilizing its artificial intelligence device “Alexa” to run advertisements for different companies, and utilizes our shopping information to make certain recommendations for what we “should” be purchasing. Amazon has laid out the blueprint for how to thrive in the digital era, making me question what internet-based service will change the way we do things in the future? No average individual in the 20th century or even early 21st century could have anticipated what ideas and businesses have changed the present day. My guess for what will change the future? Artificial Intelligence. Amazon has put forth a light demonstration of how powerful artificial intelligence can be, and with the advancement of such a product, the possibilities for how it will change consumers interests are endless. Artificial intelligence has already allowed for people to order groceries by simply speaking to a device, or even change the lighting and weather conditioning of their own home. There is no telling what new company will usurp Amazon’s power in the global marketplace, but my guess would definitely be some utilization of artificial intelligence that will change the world sooner, rather than later.

  37. When it comes to the retail world, I firmly believe Amazon is what I like to call the big bad bully. They are the powerhouse of the retail industry. A lot of it comes from the brands that they own, such as Whole Foods, Twitch, IMDb, etc. Just to see what they are able to do to the retail industry is incredible.
    Amazon had a plan to change how they ran their ads. The company wanted to focus on the consumers’ wants and needs, and I felt like that they have done a great job with that. If you ask me to name a company that is on the same level as Amazon right now, I probably could not come up with one. They have taken the world by storm and the world is changing around us because of the effects that Amazon has on us.
    Why on earth are they are so successful? It is because of the amount of data that Amazon has. The company has tons of data due to the fact that so many consumers purchase products affiliated with Amazon. Because of this, Amazon is able to adjust their advertising to each individual customer, no matter where they are located. I find this to be a very smart idea. Since everyone has their own individual wants and needs, Amazon has the data to figure out how to adjust their ads for all of their customers. It is everywhere around us and seems to be that this will the norm for years to come.
    As for the customers and stockholders, they are getting dividends based off of Amazon’s success. People are making tons of money based on the astonishing success that Amazon has had, and to me this does not seem that anything will stop the company from changing the retail world. Amazon’s sales on advertising for example increased from 1.12 billion dollars to 2.5 billion in a year. The projections are only getting higher over the next couple of years. Goods and services are being produced at a super high rate. Based on the article, it does not look like that Amazon will be slowing down anytime soon.
    It’s not surprising to me that Amazon is at this sort of level with how much they own, the amount of data, and a lot of other products and services that they can sell. Amazon is not going to fade off the map anytime soon, so we should get used to this.

  38. When Amazon started they were only known for selling books and nothing else. Their book selling was very successful as it was selling not only to the all the states but internationally as well. Since, then the retail giant of Amazon has now become the largest e-commerce company in the world. Amazon completely runs the retail market and is growing to new levels every year. A reason they have been so successful is because they are adapting and moving with the ever changing society. Amazon offers its customers any product the customer needs and has it shipped right to their front door. Amazon use of advertising is no match. The way Amazon advertises is that they use a user’s search and purchase history to promote new products to that user. The user will see what Amazon has to offer for their use. I was looking for a phone case recently on Amazon, but could not find a good one on my first search. Then as soon I came back I saw a list of cases that Amazon suggested to me. Eventually, I brought one of the cases that Amazon suggested and it worked for Amazon and me. Not only does this generate profits for the retail giant but it also makes other companies aware that selling their products on Amazon will ensure profits for them so that gives Amazon control of the entire retail market. Since Amazon has ultimate control of the retail industry it is hurting retail stores and small/local business around the internet.

    Amazon recently added the kindle, fire TV, and fire tablets. This allows Amazon to compete with companies such as Apple and Samsung. The Amazon Fire Tablets cost half as much as the Apple IPads. Therefore, Amazon is using the strategy of attracting customers who want smart devices for a significantly cheaper price. They are saying that our products can do the same thing as and IPad or Apple TV but we sell it at a cheaper price that is affordable for everyone. Amazon always tried to get into every market weather it is technology, books, retail, and medical. Technology wise Amazon has created a device called the “Alexa” the Alexa is a home device where it is like google but lets you ask question and will give you an answer right away. I have an Alexa and what got me to get one was that it allows me to play music instantly and if I want to know a fact I can ask Alexa and it will tell me right away. Therefore, I believe as more and more people buy products on the internet Amazon will only continue to rise above everyone else.

    Amazon is a “selling machine”, they have every product you can think and it can brought with few clicks. I personally do not have anything negative to say Amazon they are the present and the future. Amazon advertising team is very smart in marketing products that the user has recently searched or brought. They send out emails to the person along with suggestions when the user is looking to buy a product. Therefore, Amazon will continue to sell its products and will still be at the top of the retail industry for the foreseeable future.

  39. This article discusses Amazon’s latest technology, Alexa. With a simple WiFi connection, Alexa has the ability to answer almost any question, set timers, and add to your shopping list amongst other things. What is currently on the rise is Alexa’s ability to analyze your voice input and determine whether you may be sick or depressed and recommend medication based on your physical or emotional condition. Although this may seem useful to some, it can be a considered a violation of privacy to others. Essentially, how this would work is Alexa would have to first familiarize with a person’s normal voice. Then, based on noticeable changes in pitch, jittering, and harmonicity, the device could have the ability to offer having medication delivered within just a short amount of time. This can also influence the ads that are provided to the user. The way in which technology has advanced over time is shocking. In my opinion, such devices as Alexa seem to pave the way toward a world in which robots actually exist. Sure, there are some traditional people that have not yet caved when it came to purchasing an Alexa, but there are many who have become reliant on this device. With each new TV commercial, just when you thought Alexa could do it all, the device can now do something else. I’d be amazed by Alexa’s ability to analyze voice input, but I’m not too sure if I would take her recommendation over taking a trip to the doctor’s office.

  40. Amazon sales have been growing tremendously over the past few years. This is mainly attributed to the marketing Amazon does. When shopping on Amazon a person usually looks for a specific item, but then sees more items they could potentially want and then just buying more than anticipated. Amazon’s portal holds all of the consumers information which tells the company where we live, what kinds of items we like, who we are sending gift to, and more. Many online retailers like Amazon are able to somehow see our search history which is how we see advertisements of the items we like on various websites. This is a smart advertising tactic for Amazon and other online shopping websites, but this can be scary for the consumer. Amazon is a company that keeps growing year after year. They continue to acquire more and more businesses, making shopping convenient for the consumer. Amazon’s advertising is enticing for users and helps the company increase in sales. Advertising can be expensive, but if this is helping their sales then it is a good business decision for the company.

  41. In my house, there are two Alexas on both floors. My entire family uses these devices for simple things like setting an oven timer or reminder to putting stuff onto our Amazon shopping lists. We use Amazon shopping for a majority of our products from books to printer ink. I even have an Alexa in my room where every morning I ask her about the weather and any calendar events I may have told her about. Just recently, my kitchen echo asked me if I wanted to personalize my experience by programming my voice into her memory so she would be able to make my experience using her even better. It’s not a shock that Amazon makes all of that money with advertisers because I know when I use their site and I see something under the “you may like this” section, I usually click on it and sometimes can even be convinced to buy it.
    I don’t have any problem with what Alexa and Amazon does because I’m someone who uses my Echo or my Amazon account every single day. From shopping to reminders and weather to Amazon Music, I’m constantly using their site and helping them with their money. I can easily see Amazon one day having the ability to take over the world. This is where we’ll be able to buy clothes, food and other household products and toys with the click of one button. It’s dangerous to have such a big company with such a big influence over everyday life but this isn’t something that is going to go away soon. I can understand why some people might be skeptical to give in to Amazon and their many products but once you do, they manage to make life easier. I can see why people hate the ads on their Kindle considering my family owns one but usually they are geared to your interests and you ignore them once you actually open the device. I think it’s time we start accepting the monstrosity that Bezos created and realize that in the very near future, Amazon is going to be all there really is for the basic shopping and other needs in life.

  42. It is quite incredible that a company can become so big and dominant in various aspects of business as Amazon is currently doing. The article talks about the revenue that Amazon is able to make from advertising. Amazon reported $2.5 billion in net sales in just the third quarter of 2018 for its advertising component of the company, which is double that of last year’s figure. An analyst believes that by the end of this year, Amazon’s advertising revenue will be $8 billion. By the end of next year, the revenue will double to $16 billion, which will then become more profitable than its cloud services. To me, it is quite interesting that a company can make billions of dollars off other companies advertising through their services. Amazon has managed to establish itself as such an influential brand to consumers that other companies know that advertising their company through Amazon is the best way to connect to a greater audience. Amazon is such a versatile company, meaning that it sells everything from clothes to toys to food to cloud-computing services, it makes perfect sense that other companies want to advertise through Amazon’s vast market of customers.
    As big of a company that Amazon is, it is also very powerful. The company has a ton of information on all of its customers. For one, it has their customers’ address, so they know where they live and the demographics of where they live. They are also able to gather information on the items we purchase, the items we search for, the music we listen to through their streaming services, what we watch through their services, and much more. Whenever people to talk to their Amazon Echo, Amazon is even able to gather information on what was asked to the Echo. Essentially, Amazon knows exactly what products and services that each of its customers are into from collecting all of this data on their customers. It is the reason why that when you are shopping online, you see an advertisement for a product that you might be interested in. Amazon knows that you are interested in that product because of the data that they collected off of you. It is brilliant that Amazon can do this, but at the same time a bit scary that a company knows so much about you. The main reason why companies are willing to pay money to advertise on Amazon’s services is that they know they will get higher returns than they would without advertising.
    I try to refrain from ordering products from Amazon as much as I possibly can, as I’d much rather support a small business owner that is being out-competed by the corporate giant. However, not using Amazon is nearly unavoidable in certain instances, as its prices are low relative to other companies’, it is convenient that I don’t need to leave my computer, and the item is delivered within two days of ordering it. Whenever I shop on Amazon, it always gives me a list of products that they believe I’ll like. I always find it fascinating that Amazon knows what I would be interested in, despite the fact that I don’t shop on Amazon often. It really goes to show how innovative Amazon is as a company, and we will more than likely continue to see them increase their revenues in the coming years as they become even smarter.

  43. It is crazy to see how much Amazon has grown in the past couple of years. People went from not really like online shopping to buying so many things on Amazon. Amazon’s sales have been going up so fast for the past few years. This is because of the marketing that Amazon does to understand what their customers want and really understands the problems from customers too. While shopping on Amazon, customers search for one thing but end up getting so many things that relate to it that the customers did not even know about. This led the customers to buy those things too and they don’t even know that they do not really need those products. Amazon has gotten so good at understanding what each customer is looking at and finding out what they do not have. And this gives a huge advantage for them and that is why they are so big now. Amazon holds so much information about the customers which tells them a lot about them. Amazon sends emails and has ads everywhere and this makes people want to try it and buy more things. And Amazon does so many things like Prime and Alexa which keeps customers addicted to them. The customers get their orders within days like 1-2 days which makes customers really happy and this is only for Prime members. This makes a lot of people want to join it. Amazon has shown what smart marketing looks like and this is really cool to see how we are obsessed with this company and we can’t get enough of it. I think they will continue to grow and beat a lot of other companies and this can be a good and bad thing at the same time.

  44. When I shop online, the first website I check is Amazon. They have a huge array of products and with my Prime membership, I receive free two-day shipping on most items. Because of this, much to the point of the article, Amazon has a keen awareness of what I like and don’t like. This is demonstrated through the suggestions at the bottom of the page for other items I may be interested in. Often times, I find myself very interested in them, if not for myself then as a gift for a friend or family member. Amazon has done an incredible job at truly outpacing the competition in data collection and I applaud them for monetizing it.

    That advertising revenue is fast becoming their biggest revenue stream points to the evolution of the services that Amazon can provide. They still sell books and music as when they first started, but they also sell most anything else that can be thought of from household supplies to food to sports equipment. The retail giant now has a new service they can sell for the price of their choosing and that is very specifically targeted advertising. Amazon has positioned itself to be the leader in this new and rapidly growing market and will likely remain there for a while. This is much to the elation of Amazon stockholders around the world.

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