Brands Can Utilize Amazon’s Machine-Learning Based Product Sampling

Amazon, as a paid service, is testing samples of products for CPG brands wanting to grow their trades. According to Axios, Folgers and Maybelline are two brands that are supplying customers with samples of their products.

According to reports in the recent months, Amazon customers are getting product samples, in addition to Prime Sample program of Amazon, where users are supposed to pay to get the product samples box.

Axios found a job record for a Senior Software Engineer, which defines the ‘Targeted Sampling’ program as: “Free samples of new products are sent to customers selected using ML (machine learning), thus ensuring a higher likelihood of conversion than display ads. The program has a challenging mix of problems involving targeting, fulfillment, customer and vendor experience, and cross-campaign learning.”

And this shows the power of a sampling program of Amazon – another publicity opportunity for CPGs who are keen to exploit the reams of intent data and consumer shopping held by Amazon. CPG brands are extensively using product samples to motivate new consumers. However, Amazon is able to brace completion of samples with its copyrighted consumer data and ensure that only extremely fascinated, “in-market” consumers obtain the samples.

According to eMarketer analysis, Amazon is, at present, the US’s 3rd largest digital advertising platform.  They are violently increasing their publicity abilities because of the big profit margins that result from the publicity commerce, and the system influence of utilizing publicity to motivate even more product trades in the market.

Counting product sampling to Amazon’s collection of publicity opportunities for big brands is almost an easy decision – it brings more trades on the platform, likely gets in publicity income, and brands are locked to spend for marketing on the platform.

Amazon’s management of product samples logistics is also one thing that Google-Facebook publicity duopoly can’t compete with.

But, few brands will still be worried about Amazon’s capability to utilize sampling for their rising collection of private label products. However, if Amazon thinks of lining up its own private label brands in advance of third party CPGs in the coming years, this can discourage brands from getting involved with publicity attempts of Amazon in a bid to supply Amazon with a lesser amount of customer’s purchase data.

Amazon still holds the consumers in another warning for the brands. Though product sampling can be alluring for the brands that require product adoption and awareness, many brands know that Amazon has full control of the consumer association.

Sellers and venders on Amazon can access only very small consumer data even though Amazon gathers massive collection of shopper information. They are not allowed to contact consumers other than for remarketing or through specific customer service requests. Amazon is basically a storage tower for many brands.

The program may also face criticism from users who identify that their shopping and browsing information is being utilized for publicity programs of Amazon. Some outlets like Lifehacker have already been reported to criticize the sampling program and have published about how consumers can avoid participating.