Amazon’s New AI Assistant Project Amelia Will Support Third-Party Sellers

Amazon Project Amelia: Key Insights 

• Streamlining Seller Operations: Amazon’s new AI assistant, Project Amelia, helps third-party sellers (who brought a quarter of Amazon’s net sales in 2023) optimize operations by resolving issues, providing business metrics, and offering personalized recommendations.

• Other AI Tools: In addition to Project Amelia, Amazon has introduced AI tools for personalized product recommendations and an AI-powered video generator. Consumers value timely AI responses, better deals, and more relevant products.

• Competing with Tech Giants: Amazon’s AI advancements are part of its strategy to compete with tech giants like Google and Microsoft. The company also faces FTC scrutiny over alleged monopoly power.

Amazon has unveiled "Project Amelia," a new artificial intelligence (AI) powered assistant for third-party sellers, designed to streamline business operations and enhance the eCommerce experience. Project Amelia, announced at the Amazon Accelerate event, is part of Amazon’s broader push to integrate generative AI across its retail platform. 

Sellers can use the tool to resolve issues, fetch sales and inventory data, and receive personalized recommendations. As it evolves, Amelia will go beyond advice, autonomously handling tasks like filing inventory claims or addressing account issues on behalf of sellers. 

Third-Party Sellers Are Essential for Amazon 

One of the key features of Amelia is its ability to provide sellers with instant access to business metrics. Sellers can simply ask questions like, "How is my business doing?" and Amelia will deliver a summary of sales data, traffic, and performance comparisons. 

This personalized support not only reduces the time spent on administrative tasks but also helps sellers focus on expanding their business. Over 400,000 sellers have already adopted Amazon’s generative AI tools, which can generate product listings, titles, and descriptions, making the selling process more efficient. 

The launch of Project Amelia comes at a time when third-party sellers play a critical role in Amazon’s success. Based on our data: 

• About a quarter (24.3%) of Amazon.com, Inc.'s net sales last year came from third-party services.

• While online stores account for the largest share (40.3%), Amazon Web Services is also essential to Amazon's business (15.7%).

• Other sources of net sales include advertising (8.1%) and subscription services (6.9%), as well as various other business segments (4.3%).

The introduction of AI solutions like Amelia is expected to further accelerate seller growth and enhance the customer shopping experience. 

Amazon’s Other AI Efforts 

Beyond Amelia, Amazon has introduced a suite of new AI tools to further enhance the platform’s offerings. For example, the company has rolled out AI-generated product recommendations tailored to individual customers based on their shopping habits. Rather than generic suggestions, these recommendations offer more relevant categories, such as gluten-free products for those who regularly search for them. 

Additionally, Amazon is launching an AI-powered video generator that allows sellers to create marketing videos quickly and affordably, using just product images and features to produce engaging clips.

What Do Consumers Want? 

Other than what the industry giants have been up to, it is equally important to know what the consumers want when it comes to the use of AI in online shopping. 

As per data from Bizrate Insights:

• 33% of consumers see timely responses as the primary benefit of AI, while 30% highlight finding better deals.

• 26% believe AI helps them find more relevant items.

• 15% of respondents appreciate more accurate responses and a personalized experience. 

Competition and Regulation
in the AI Landscape 

Amazon’s AI developments reflect its desire to catch up with industry rivals like Google and Microsoft, which have made significant strides in integrating AI into their platforms. Amazon CEO Andy Jassy emphasized the unprecedented opportunity that generative AI presents, comparing it to other transformative technologies like the internet and cloud computing. This push into AI innovation positions Amazon to stay competitive as other tech giants make significant investments in the AI space.

The company’s advancements in AI tools for sellers also come at a time of regulatory scrutiny. The company faces a landmark lawsuit from the U.S. Federal Trade Commission, accusing it of using its monopoly power to disadvantage sellers and competitors. Despite these challenges, Amazon continues to press forward with AI-driven initiatives that enhance seller performance and customer experience. 

As Amazon expands its generative AI capabilities, the focus remains on improving the seller experience, optimizing business operations, and making the platform more attractive to both sellers and customers. Project Amelia and other AI innovations signal Amazon’s ongoing commitment to leveraging cutting-edge technology to drive eCommerce growth.

Sources: GeekWire, CNBC, Amazon, The Verge, Bizrate Insights, ECDB