Mobile Strategy - An Enterprise Revolution

Unless You are Amazon, You Still Need to Segment Your eCommerce Market

So I just bought a garage door opener remote and a replacement flask for my running waist gear on Amazon, two very different items.  The last time I bought the garage door opener remote was on a garage door opener site.  The running gear, I originally bought on a running gear site.  On those sites, the recommendation engine had an easy time recommending products.  But on Amazon, after buying the second product, it was clear that even the algorithm of the great Amazon was starting to break down, trying to figure out what to recommend to someone that just bought two products with basically no connection.  It even tried to reach back and recommend something based on a previous purchase, but unfortunately for them, it must have been something my wife purchased a couple years ago for kids that are now much older and need a whole different set of products.  I am actually a pretty big sucker for recommended products, so whatever value Amazon could have extracted from me if they could have figured out what to recommend next was lost in the oblivion that is Amazon’s massive product selection.  So for me, the moral of the story, as great as it is to have everything under the sun available on one site, and obviously Amazon handles it pretty well, the rest of us in the eCommerce world are much better off using focused market segmentation on our websites with a controlled set of products optimized for a specific market and just owning that niche.  You can typically charge more on average, realize higher conversion of traffic, drive higher total sales averages, and get a much better return on your recommendations.


To Tumblr, Love Metalab