A day after Amazon reported its net revenue rose 11% to nearly $159 billion and net income jumped 55% to $15 billion in Q3 2024, the company announced an immersive online shopping experience that highlights some of its innovative and intense technologies such as 3D tech powered by Amazon Beyond.
There are more than 100 gifts and stocking stuffers along with holiday decor, and premium gifts -- including items from top brands like Beats x Kim Kardashian, Kate Spade, Bumble and Bumble, and Coach.
Shoppers can explore a diverse assortment of must-have items, including customer-loved products and trending picks across fashion, home, kitchen appliances, electronics, and beauty. Interactive elements such as a conveyor belt of gifts and shimmering ornaments on the ceiling will also unlock surprises in the shop.
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The showrooms have hotlinks to flashing lights where consumers will find a toy shop with notable brands like Lego, Breville, Star Wars, and Disney. When the consumer clicks on the lights, a close-up image of the product appears with a complete description and estimated shipping times.
The shops provide cheerful music and animations, offering a guided journey to help consumers find something for everyone on their list. Consumers can add all items directly to the cart and check out as usual with a few clicks.
Amazon’s AI-powered conversational shopping assistant Rufus has been integrated into the shops, making it easier for consumers to find deals and tailored gifts.
Rufus also provides insight into gift selections with AI Shopping Guides. These guides, available on more than 100 product types, use AI to consolidate and simplify key product information so consumers can find the correct product without spending hours researching.
Much of the virtual shop is powered by generative artificial intelligence (GAI). Amazon CEO Andy Jassy told analysts and shareholders on the company’s earnings call that he expects to make money on investments primarily tied to GAI.
He pointed to the success and profits from Amazon Web Services, despite huge costs associated with building data centers and electricity.
Amazon spent $22.6 billion on property and equipment during the quarter, up 81% from the year prior. The company plans to spend $75 billion on capex in 2024 and expects an even higher number in 2025.
Amazon did not disclose its revenue from GAI, but Jassy said it has become a “multi-billion-dollar revenue run rate that continues to grow at a triple-digit year-over-year percentage and is growing more than three times faster at this stage of its evolution as AWS itself grew.”
Advertising in Amazon's virtual holiday store requires brands to set up Amazon Ads campaign using Sponsored Products and Sponsored Brands, and highlight holiday-themed promotions and deals in the product listings and ad creatives. Brands also can use Amazon's "Stores" feature to create a dedicated holiday storefront with festive visuals and curated product selections.
Amazon suggests using holiday-themed images, festive keywords in product titles, descriptions and backend search terms. And, clearly display special holiday discounts or promotions.