The Information's TITV
00:29:51 · Akash Pasricha, Catherine Perloff
[00:29:51] S0: Okay. So this is like... This is pretty shocking. I'm not going to lie. I mean, like the idea that Amazon is going to let people buy things without the whole infrastructure, the delivery, I mean, like, did you see this coming when you started reporting this? [00:30:07] S5: I mean, well, it's surprising because... Yeah. Right. Like, Amazon has been trying to sort of be the dominant retailer. This is supporting rival retailers. On the other hand, Amazon has actually had this... So this program, this Shop Direct Buy For Me program, they actually started experimenting within February of last year. It's almost been two years. And I mean, that's part of what our story gets into is that it's been kind of under the radar despite existing. But I think the real play is that, you know, as chatbots become more popular, as agents become more popular, there's a risk that websites get disintermediated, including websites as important as Amazon because if you can just buy something using a chatbot, you don't have to visit Amazon's website. So this is sort of a move for Amazon to fight back against that and say, You you can buy everything you need from amazon.com even if we don't sell it. And you know, that can lessen people's reliance on using, you know, newly popular consumer AI agents like, you know, maybe Muse, Meta's Muse that has gotten a bit of traction, Instinct, products from Google and OpenAI, etcetera, and still sort of have some skin in the game and maintain their position as the dominant place to find e commerce listings.
00:30:07 · Catherine Perloff, Akash Pasricha
[00:30:07] S5: I mean, well, it's surprising because... Yeah. Right. Like, Amazon has been trying to sort of be the dominant retailer. This is supporting rival retailers. On the other hand, Amazon has actually had this... So this program, this Shop Direct Buy For Me program, they actually started experimenting within February of last year. It's almost been two years. And I mean, that's part of what our story gets into is that it's been kind of under the radar despite existing. But I think the real play is that, you know, as chatbots become more popular, as agents become more popular, there's a risk that websites get disintermediated, including websites as important as Amazon because if you can just buy something using a chatbot, you don't have to visit Amazon's website. So this is sort of a move for Amazon to fight back against that and say, You you can buy everything you need from amazon.com even if we don't sell it. And you know, that can lessen people's reliance on using, you know, newly popular consumer AI agents like, you know, maybe Muse, Meta's Muse that has gotten a bit of traction, Instinct, products from Google and OpenAI, etcetera, and still sort of have some skin in the game and maintain their position as the dominant place to find e commerce listings. [00:31:26] S0: And remind me, I think they had blocked access to Muse. Is that still in effect for Amazon?
00:31:26 · Akash Pasricha, Catherine Perloff
[00:31:26] S0: And remind me, I think they had blocked access to Muse. Is that still in effect for Amazon? [00:31:35] S5: Yeah. So I mean, there's definitely an irony here that they are blocking Muse. To our knowledge, they're still blocking OpenAI, they're still blocking Google, but then they're going ahead and scraping other websites. So it's sort of like, you know, there can be... [00:31:50] S0: I would hate for one of those websites to block Amazon from accessing them. [00:31:57] S5: Well, know, any website can opt out of this program, so they're not like forcing anyone to be in it, but you have to opt out. It's not like automatic that you don't get to choose as a retailer whether you're a part of this, and I spoke to a lot of retailers that like didn't really know they were part of it until you know they kind of started noodling around. They're like, Oh, okay, I guess we have listings from here. Which that sometimes causes some controversy, especially because sometimes Amazon has gotten some of the details wrong about what those products actually are. But yeah, I mean merchants can opt out, but it's definitely different than other things Amazon has offered where, for example, they've been offering for several years Buy with Prime, which lets rival retailers use the Prime speedy delivery and checkout on a Shopify site, say. But you have to opt into that versus this is opt out.
00:31:57 · Catherine Perloff, Akash Pasricha
[00:31:57] S5: Well, know, any website can opt out of this program, so they're not like forcing anyone to be in it, but you have to opt out. It's not like automatic that you don't get to choose as a retailer whether you're a part of this, and I spoke to a lot of retailers that like didn't really know they were part of it until you know they kind of started noodling around. They're like, Oh, okay, I guess we have listings from here. Which that sometimes causes some controversy, especially because sometimes Amazon has gotten some of the details wrong about what those products actually are. But yeah, I mean merchants can opt out, but it's definitely different than other things Amazon has offered where, for example, they've been offering for several years Buy with Prime, which lets rival retailers use the Prime speedy delivery and checkout on a Shopify site, say. But you have to opt into that versus this is opt out. [00:32:51] S0: So when you say that this is a defensive play or maybe even an offensive play against these agents, so does Amazon have its own muse or instinct like agent? Or is the experience still that I put it in the search bar, I'm sure they have some AI search stuff as well. But is there sort of an AI personal assistant that can just go and buy things directly that competes with Muse?
00:33:21 · Catherine Perloff
[00:33:21] S5: Yeah, so well, they're basically like the sort of like the way this program works is that there's like a lot of products that are available where you actually have to buy it on another site. But there's of those products that you know they're offering some they have this Buy for Me button where you it is like an agent where you can use Amazon's agent, which is mostly based on anthropic models to go and like purchase it without leaving the site. And then they also have their kind of a separate product is this Alexa for Shopping chatbot where you can ask questions about products. The shop direct buy from you listings will come up in that chatbot as answers. So if you're like, I want to buy Aloe, Yoga, leggings, Amazon doesn't sell that, but you'll see this listing for the ShopDirect. So it is a competitor in a lot of ways because A, there's an agent and B, I mean, part of the point of the shop direct listings is that it wants to sort of replicate the experience of using, you know, Muse where you can just see anything on the web from Amazon, even if like just seeing another listing, you know, isn't like maybe what we think of when we think of AI, but it's kind of like that AI like experience. And then for some products there, you know, you can actually use the agent to buy it. Now I will say I saw when I've just been, you know, browsing Amazon reporting on this story, I definitely saw many more products you could that took you outside the site than actually using an agent to let you buy it. But like that option exists. It's just more limited.
00:34:55 · Akash Pasricha, Catherine Perloff
[00:34:55] S0: How many people are using this? It's called Shop Direct feature? Do we have any stats at all? [00:35:03] S5: You know, it's, we, you know, we noticed two fifty million products being sold via this, which is a big expansion from March when there was only 100,000,000 products being sold. However, is anyone buying that? We don't really know. I talked to a lot of, you know, ecommerce consultants, retailers. They all really either weren't sure whether they were in the program or if they were in the program, weren't really able to tell if it was driving sales. And part of that is, you know, Amazon probably could have better sort of attribution infrastructure to help the retailers link the program to sales. But I think part of it is like maybe people aren't really clicking on these links. I mean, we don't exactly know. And I mean, do think though it is worth saying that like all of agentic commerce, even Muse is still like pretty niche. Most people aren't doing this right now. So, but yeah, right now it's kind of interesting to like they're expanding it. There's so many products available, but we're not seeing a ton of traction where it's gotten a lot of mindshare really from retailers that they've noticed a ton of sales from this.