Amazon Uses Customers Data to Send Free Samples of Products – Here’s How It Works and How It Will Change Online Retailing

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Amazon has an under-the-radar program that sends customers samples of free stuff. Nexter.org knows how it works and in which way it may change the future of online retailing forever.

What’s ‘Amazon Product Sampling’?

Source: Amazon

Apparently, Jeff Bezos’s divorce doesn’t influence his job as his company Amazon now launched a new way of promoting stuff and it may change everything.

The e-commerce giant has a little-known program that sends small test sizes of consumable products to customers who might want them. Known as Amazon Product Sampling, it will send sample sizes of products like Folgers’ new brand of 1850 coffee, Purina Beyond grain-free pet food, Bear Naked Granola, and Dunkin’ Keurig coffee pods.

The program is currently small, but according to job listings seen by Axios, it could be expanding. The program is another part of Amazon’s growing advertising business, in which brands can pay Amazon to reach certain customers.

How does it work?

Samples of new products are sent to customers selected using machine learning based on Amazon’s data about consumer habits, according to recent job postings and details listed on its site.

The idea is that Amazon can use information it knows about you to provide products that you might like. For example, if you’ve purchased a Keurig machine or Keurig coffee pods from Amazon before, the algorithm figures you might be able to use some pods from a different brand.

amazon-sends-samples-photo

It uses machine learning and predictive analytics to do this on a large scale, according to Axios.

In a November listing for a “BizTech Leader” position, the company says that it is an “advertising product that leverages Amazon’s customer data to allow brands to put their products in the hands of the right customers to drive product awareness and conversion.” (“Conversion” is an industry term for when a person goes from seeing an ad to buying the product in the ad.)

In this case, advertisers pay Amazon to send items to customers who might purchase the product, according to the legal terms and conditions of the program. The brands get access to Amazon’s huge customer base without offering the customer data directly to the advertiser

How it may change the industry? 

Source: Amazon

Turning free samples into new targeted ads plays to Amazon’s strength as a trusted delivery service of everyday goods, something Americans already expect from the company. Amazon is betting the sample strategy is something its biggest competitors — Google and Facebook — can’t match.

Analysts see this as a big advantage for Amazon in its efforts to take on Google and Facebook’s ad dominance. The tech giant has the purchasing data and logistics infrastructure to offer samples of actual products, which could be more effective than display ads on Facebook or search ads on Google for certain kinds of consumer packaged goods brands.

Analysts predict that offering consumers samples of products in the convenience of their homes also opens up opportunities for Amazon to sell more packaged goods and products.

Perhaps in the future, Amazon will also calculate when you’re out of milk or toilet paper taking into account your latest purchases and its frequencies to offer you a ready-made set of purchases you’ll need to approve!


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Amazon Uses Customers Data to Send Free Samples of Products - Here's How It Works and How It Will Change Online Retailing
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Amazon Uses Customers Data to Send Free Samples of Products - Here's How It Works and How It Will Change Online Retailing
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Amazon has an under-the-radar program that sends customers samples of free stuff. Nexter.org knows how it works and in which way it may change the future of online retailing forever.
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