Amazon CEO Andy Jassy published his 2023 Letter to Shareholders Thursday (April 11) to outline how the company is changing and its goals for the future.
According to Amazon's own calculations, this book takes 28 minutes to read. If you don't have 30 minutes to spare, here are some key highlights (according to our calculations, it takes 3-4 minutes to read).
Back to the basics of technology
Perhaps most notable is Jassy's focus on how to transform the experience for developers rather than consumers.
Jassy highlighted Amazon's commitment to improving the developer process through the provision of fundamental building blocks known as primitives. Amazon Web Services (AWS) Accelerate innovation and speed up processes.
Amazon aims to streamline the development process by providing discrete, flexible components that enable developers to efficiently solve real customer problems.
He said the introduction of primitives has increased the speed and agility with which developers can create and deploy applications, adding that Amazon S3 (Simple Storage Service) is a foundational service that simplifies the way developers build. and Amazon EC2 (Elastic Compute Cloud). Extend your application.
By enabling developers to build innovative applications more efficiently, Amazon can drive customer engagement and loyalty across its platform on both the B2B and B2C sides.
“Building primitives intentionally requires patience,” Jassy says. “The first few basic service releases can feel random to customers (or the general public) before it's clear how these building blocks fit together.”
A three-layer approach to generative AI
One such primitive is generative AI. The company has divided this into three tiers. At the lowest level, Amazon provides foundational tools (FM) for developers and businesses to build their own AI models.
In the middle tier, Amazon offers managed services that allow customers to take existing foundational models and customize them for specific applications. One such service is Amazon bedrock, Provides a platform for building and scaling generative AI applications using a variety of pre-trained models.
At the top layer, Amazon is building a variety of generative AI applications across its consumer and AWS businesses. These applications include AI-powered shopping assistants, enhanced voice assistants like Alexa, and new advertising solutions.
Turn clicks into money with ads
Speaking of advertising, the company's advertising business grew 24% year-over-year to $47 billion last year thanks to sponsored ads.
With ad revenue steadily growing, Amazon is leveraging its broad reach to sell Prime Video and convulsions. By seamlessly integrating advertising into popular entertainment products, Amazon aims to create new avenues for brands to engage with consumers and unlock additional revenue streams.
let's make a deal
As economic pressures drive consumers to seek out deals, Amazon is focused on aligning its products with value-seeking behavior.
One strategy to meet the demand for sales is to introduce seasonal savings events, such as Prime Big Deal Day and extended Black Friday and Cyber Monday promotions. These events give Prime members early access to discounted products and give customers an incentive to shop and save ahead of the traditional holiday shopping period. By launching these events, Amazon taps consumers' desire for bargains while fostering loyalty among Prime members.
PYMNTS Intelligence’s “Amazon spring sale allows trade seekers to become Prime membersAccording to “28% of U.S. consumers participated in the company's latest sale event. The event was especially popular with millennials and his Gen Z shoppers, as well as consumers with annual incomes of $100,000 or more.
Overall, financial concerns are top of mind for retail customers. February/March PYMNTS Intelligence Report “New Reality Check: Paycheck to Paycheck Report: Why a third of high earners live paycheck to paycheck” is based on a survey of more than 4,200 U.S. consumers. It found that half of shoppers switched to cheaper retailers in the face of rising prices for retail goods. Additionally, 60% of shoppers reduced non-essential purchases.
The future of grocery delivery by drone
Jassy highlighted the potential of drone delivery to revolutionize the grocery and pharmacy sectors. He highlighted “Amazon's drone delivery service, known as Amazon. prime airaims to transform the way you order and receive fresh food by offering fast package delivery within an hour.
While Jassy acknowledged that initial drone deployments may be limited in terms of package size and coverage, he remains confident that drone delivery of groceries and medicine will eventually become widespread. Indicated. He emphasized the importance of leveraging innovative technologies, such as drone delivery, to increase customer convenience and efficiency in receiving essential goods.
Consumers want to buy their groceries from major retailers. A PYMNTS Intelligence study found that US shoppers are 55% more satisfied with their purchases. groceries From a major merchant.
“Ultimately, drones will be able to deliver packages to customers within an hour,” Jassy wrote. “While it may not be available in all package sizes and in all locations from day one, we believe it will become popular over time. Please think about how it will change.”
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