E-commerce giant, Amazon has announced the development of a tool that would allow third-party sellers retrieve data, with the mandate of better predicting the demands of shoppers in creating products that align with the market’s needs.
The new tool Amazon Product Opportunity Explorer will give the retailers the capacity to gain access to data and the latest trends, to be able to identify opportunities that would help market their most recent products to aptly deliver the ever-increasing demands of the customers.
The multinational technology company in a Press Release announcing the ‘Product Opportunity Explorer’ wrote:
“Identifying and launching new products is key to retail success, but it can be costly and time-consuming. Amazon’s new Product Opportunity Explorer (POE) tool helps take the guesswork out of identifying which products to launch by providing sellers with insights into what costumers are searching for, clicking on, and buying, as well as not buying”. .
“The tool helps sellers identify niches of emerging product opportunities by providing detailed data on search volume and growth, sales history, and pricing trends, so they can identify and act on customer demand,” the post added.
Amazon had also used the post highlight the excitement of a seller in the wake of the new feature announcement, stating that businesses will get “recommendations specifically relevant” to their enterprises.
There are mixed reactions in anticipation of the release, with some vocalizing their happiness while some feel strongly against the move, claiming it has the potential to jeopardize their businesses as Amazon suggestions based on users’ data could delegate stores to replicate already existing merchandise.
Popular Science and Tech startup news medium, The Verge, had claimed that a company spokesman had asserted that the POE will provide third-party sellers with accumulated data that will not release specific information about other brands on the platform.
But Amazon on its own stated that it will make provisions for product suggestions to visitors, while it strictly covers certain items, the users may have been searching and could not locate.
In further highlighting the POE feature, the e-commerce company will deliver a much bigger category and subcategory metrics, including what users are aiming to find, pricing lists, and more.
“Amazon has a long track record of inventing for sellers, and our Product Opportunity Explorer tool is our latest innovation that provides them with insights to help them bring new products to market faster and more efficiently,” Vice President of North America Selling Partner Services at Amazon, Ben Hartman said in a statement.
“This is another example of how we empower small businesses and entrepreneurs by providing them with powerful capabilities to reach more customers and grow,” he added.
This is a tool that should be greatly seen as one that could heighten regulatory scrutiny, especially with the regulatory wave that has hitherto obscured its market data antitrust violation. The European Union (EU) accused Amazon of “systematically” abusing data for its own benefit, an advantage other businesses do not have.
With the beta testing for the POE and the final release data scheduled for 2022, Amazon should take into consideration salient issues and questions like the implication of the tool for the secured relationship between the retail platform and its sellers if data prediction was solemnly based on an algorithm and also the possibility of the algorithm failing to deliver accurate calculations about certain products.
The e-commerce giant feedback on these enquiries will go a long way in building public trust as regards the POE tool and other of its tools.
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