Important Amazon Business Trends in 2024

Fueled by technological progress, evolving customer demands, and shifting marketplace realities, the Amazon landscape is undergoing significant changes. As an owner, it is crucial to educate yourself on Amazon business trends in 2024 if you want to stay competitive.

In this article, we discuss six major Amazon business trends to pay attention to in 2024. These include:

• AI’s continued impact on the industry
• The evolution of procurement processes
• More big-name retailers moving onto the Amazon marketplace
• AR (augmented reality) and VR (virtual reality) further enhancing the shopping experience
• Social media continuing to play an expanded role
• More people ordering groceries on Amazon

Related Article: How To Use AI To Predict the Perfect Amazon Price

AI Will Continue to Impact the Industry

It’s no secret: recent advancements in artificial intelligence technology are revolutionizing work in all industries. These changes are only gathering pace. People are finding new ways to make use of AI and are rolling out finished products or services.

This is true when it comes to doing business on Amazon. In 2023, people explored using AI in Amazon businesses, leading to growth. As AI tools become more refined and widely adopted moving into 2024, large changes are in store. These include:

• Personalization of communications for customers
• Personalized product recommendations and offers
• Greater use of AI-generated content
• Widespread adoption of AI customer service chatbots
• AI-enabled real-time pricing strategies

“As AI tools become more refined and widely adopted moving into 2024, large changes are in store.”

Further personalization for customers

The better you know your customers, the better you can connect with them. This allows you to better meet their needs and successfully sell your products to them. Traditionally, customer data and ensuing outgoing offers and communications have all been handled on an aggregate level.

AI technology offers Amazon business owners the ability to provide greater customer personalization. Highly specific and targeted personalization on a mass scale is an exciting prospect for sales. In the right hands, it can have a significant impact.

There are several ways AI enables greater personalization for you as an owner. AI-powered customer analytics allow you to learn more about your customers in detail. This is on a scale not possible without AI.

Based on this knowledge, AI can then provide more-personalized customer communications. Instead of talking to a broad customer segment, you can now address each customer’s needs in detail. AI makes this possible.

If you have used Spotify recently, you may have encountered a demonstration of this type of technology. Starting in early 2023, Spotify released its AI-powered “DJ” feature.

Your DJ plays a personalized playlist for you based on your listening habits and history. These sets are punctuated by a human-sounding DJ personality. The DJ speaks directly to you about your music tastes, what’s coming up next, and more. It feels completely natural—like a team made the service just for you. It becomes more impressive when you realize they did the same thing for each of their 226 million subscribers. This level of mass personalization is only possible with AI.

Personalized product recommendations and offers

AI enables better customer analytics. This allows for more-personalized product recommendations and offers.

AI-powered algorithms can provide more-accurate product recommendations. They are based on extensive analysis of each individual’s purchasing preferences. Personalized product recommendations help get the right products in front of the right customers. This better meets their needs and increases overall sales.

At the same time, these algorithms can also provide targeted offers to individual customers. This increases the chance that they make a purchase decision.

Personalized recommendations largely depend on the Amazon platform, not individual sellers. It is important to be aware of this new technology, however, as it begins to play a larger and larger role throughout 2024.

Greater use of AI-generated content

Generative AI technologies will play a greater role in creating a range of content. This will help you save time, boost effectiveness, and cut costs.

First, products already exist that let you generate search-optimized Amazon product descriptions. These tools can help you create product-description snippets that perform well. They can help you create them much faster than before.

Image generation tools are also making a mark on the Amazon industry. Generative AI image tools can help you build product images. They can also help you create images for your content marketing efforts. They create high-quality, personalized images in a timely and cost-effective manner.

The same is true for video assets. In 2024, video is increasingly important for product pages. AI gives you the tools to create quality, personalized videos.

Generative AI can also boost the productivity and effectiveness of content and social media marketing. It can do this by generating images and videos easily. Additionally, it can write effective blog and social media posts in a fraction of the time that a human can. These improvements are bringing significant changes to Amazon advertising.

“Generative AI can also boost the productivity and effectiveness of content and social media marketing.”

AI customer service chatbots

The online retail space—and the ecommerce industry as a whole—is seeing widespread adoption of AI customer service chatbots. This is just one of many Amazon trends that are forecast to gain steam throughout 2024.

These chatbots are getting better at handling both simple and complex customer inquiries. This reduces the need for human agents. Amazon sellers should be aware of how they can utilize this technology as it continues to gain traction in 2024.

“While Amazon’s exact pricing formula is a secret, it’s safe to say that dynamic pricing will play a larger role in 2024 and onward.”

Real-time pricing

Lastly, AI is powering platform-wide dynamic pricing strategies for Amazon. Dynamic pricing allows product prices to change multiple times per day on Amazon. The changes depend on current market conditions and individual customer characteristics. This leads to greater conversions and greater overall product sales.

Amazon uses a variety of pricing strategies to change or frame prices for individual scenarios. While Amazon’s exact pricing formula is a secret, it’s safe to say that dynamic pricing will play a larger role in 2024 and onward.

Procurement Processes Are Evolving

One of the key Amazon trends to pay attention to in 2024 is the evolving nature of procurement processes and sourcing criteria. There are two main drivers of this evolution:

• Technological shifts
• Customer preferences

Technological shifts

As we have seen, the widespread adoption of AI technology is one of the main industry trends reshaping Amazon. AI tools are also radically changing the procurement process for Amazon sellers.

Powerful AI analytics programs can evaluate inventory levels and trends over time. They can also estimate expected future demand and more. These capabilities allow for creating more-efficient inventory management strategies. These strategies can save third-party sellers significant time and money.

Expect smart inventory management to be increasingly important to stay competitive.

Customer preferences

Customer preferences and values play a significant role in shaping online shopping behavior. Nowhere is this more apparent than in the continuing emergence of sustainability as a core value for online shoppers.

Of course, consumers still take price and quality into consideration; however, more and more shoppers prefer to buy environmentally and socially friendly products. This means the actual production of the product as well as the supply chain responsible for delivering it to the buyer.

Amazon allows qualified sellers to join their Climate Pledge Friendly certification program. This certification is made visible to the shopper when making purchasing decisions. For the climate and socially conscious consumer, this displayable badge could drive buying decisions.

Climate and social issues are rising in importance to consumers. As a result, Amazon business owners must pay attention to these trends to stay competitive.

More Big-Name Retailers Will Move Onto the Amazon Marketplace

Amazon is far and away the dominant player in commerce. Big brands that have traditionally remained off the Amazon marketplace are recognizing the benefits of selling on Amazon. Many are now launching their own seller stores. This includes the recent addition of luxury brands like Chanel, Dior, and Gucci. This was facilitated in part by the launch of Amazon Luxury Stores, a curated collection of sought-after brands.

This trend is likely to continue through 2024. As a seller, this translates into increased competition for you and your business. It will become more important than ever to find profitable products and refine your marketing efforts. You can do this with Amazon Ads or other marketing channels. At the same time, you must optimize your operations to remain relevant and achieve business success.

“Augmented and virtual reality tools are playing a growing role in online shopping.”

AR and VR Will Further Enhance the Shopping Experience

AI is not the only technology to impact the Amazon industry. Augmented and virtual reality tools are also playing a growing role in online shopping.

AR- and VR-assisted shopping tools

Tools that allow shoppers to “try on” products before purchasing improve the shopping experience. Shoppers can now see how a pair of shoes will look on their feet, visualize what a piece of art or furniture would look like in their room, and more. This is all made possible through the use of virtual reality and augmented reality technology.

By improving the shopper’s experience, these tools can boost conversions and drive revenue. They are expected to continue to play a larger and larger role in the Amazon shopping experience throughout 2024. As a seller, it is crucial to make the most of these technologies to stay competitive in your marketplace.

Social Media Platforms Will Continue to Play an Expanded Role for Amazon Businesses

Social media will continue to play an expanded role in ecommerce in general and within the Amazon industry more specifically. You must pay attention to these trends. Adjust your strategy accordingly to improve your chances of success.

Competition from social media ecommerce

While Amazon remains the go-to place for online shopping, social media ecommerce options are continuing to gain steam. Many shoppers, particularly younger ones, are turning to social media to find products they love.

This creates competition for you as a seller. If you don’t already have a social media presence or store for your company, you may want to consider implementing one promptly.

“While Amazon remains the go-to place for online shopping, social media ecommerce options are continuing to gain steam.”

Social media marketing

At the same time, more Amazon sellers are turning to social media marketing to sell products directly from their Amazon stores. The first step is to maintain an active social media presence. Amazon brands are also hiring influencers to spread awareness and expand their customer base.

Again, if you haven’t tapped into social media marketing by now, you may want to consider adding this channel to your business operations.

More People Are Ordering Groceries on Amazon

Lastly, more people are turning to Amazon to fulfill some of their grocery shopping needs. You may not be able to get fresh fruit, meats, and other perishables online (yet). But you can easily buy longer-lasting grocery and home-care products on Amazon.

 

For those products that online grocery shopping can’t handle, Whole Foods Market stores, which Amazon also owns, plug the gap. What you can’t buy on Amazon, you can buy at Whole Foods. This dynamic is made more convenient by the fact that Amazon product returns can be completed easily in Whole Foods stores.

Conclusion

Driven by technological progress and consumer behavior changes, significant changes are in line for Amazon sellers in 2024. If you fail to make use of new tools or cater to changing preferences, you set yourself up to lose out to your competitors.

Understanding the expected 2024 Amazon business trends increases your chances of achieving a highly profitable year of growth for your FBA business.