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Amazon's Clever AI Innovations Can Strengthen Its E-Commerce Moat

Feb. 16, 2023 6:26 PM ETAmazon.com, Inc. (AMZN)5 Comments
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Nexus Research


  • Amazon introduced ‘Customers ask Alexa’, which enables Amazon sellers to answer customer FAQs through Alexa and facilitate purchase decisions.
  • This feature allows Amazon to better understand customers’ shopping journeys and preferences, and subsequently help it personalize and further improve the shopping experience, making the Amazon ecosystem stickier among shoppers.
  • It also enables merchants to learn more about their customers and discover new audiences for their products through conversational queries, enhancing the value proposition of selling through the Amazon marketplace.
  • Alexa can only assist with purchasing prime-eligible products, encouraging more merchants to join the prime network, which consequently boosts third-party seller services revenue.
  • As Amazon sellers strive to improve their product rankings in the interest of inducing Alexa to recommend their products, they will spend more on advertising, bolstering Amazon’s advertising revenue.

Amazon Echo, the voice recognition streaming device from Amazon

seewhatmitchsee/iStock Editorial via Getty Images

Amid the hype around AI accelerating lately thanks to the launch of ChatGPT and other natural language innovations, investors shouldn’t overlook Amazon’s (NASDAQ:AMZN) AI advancements to augment the shopping experience. AI innovations are changing

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Striving to uncover long-term investment opportunities (10+ years) through in-depth research and analysis. Nexus Research seeks to evaluate and compare business strategies to determine a company’s potential for market penetration, revenue growth and profit margin expansion. During market downturns, stocks often become cheap very fast, creating various investment opportunities at once. Amid such circumstances, investors often lack the time to research a company thoroughly before making investment decisions, out of fear that they will miss out on attractive entry points. Therefore, Nexus Research not only uncovers present-day buying opportunities, but also offers extensive insights on solid companies with promising growth potential despite expensive valuations, thereby allowing investors to be ready and make well-informed investment decisions when the stock becomes more reasonably valued.

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