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Amazon (AMZN) Boosts Fashion Arm With New AI-Backed Features
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Amazon (AMZN - Free Report) is leaving no stone unturned to bolster its fashion retail division, Amazon Fashion, on the back of its robust strategies and innovative technologies.
This is evident from the latest introduction of four AI-powered features — personalized size recommendations, review highlights, re-imagined size charts and fit insights, which are basically designed to address the fashion fit problem that customers often face while shopping online.
The personalized AI-driven size recommendations are based on machine-learning models and deep learning-based algorithms. This size recommendation system analyzes millions of data on style, size charts and customer reviews of various products, with the help of which it generates billions of size recommendations.
The algorithm continuously learns and adapts to the changes in customers’ size needs.
Another feature called Fit Review Highlights, which creates a review highlight for each customer based on their recommended size, is backed by large language models (“LLMs”). The feature offers personalized size guidance based on reviews from customers who have purchased the item in the same size.
Re-imagined size charts, which are also powered by LLMs, are designed to improve the accuracy of size charts by extracting and cleaning size chart data from multiple sources.
On the other hand, the Fit Insights Tool, which leverages an LLM model to extract and aggregate customer feedback on fit, style and fabric, contextualizes product returns and size chart analyses with customer reviews. It helps brands understand customer fit issues and reduce the number of related returns.
Amazon strives to deliver an enhanced fashion shopping experience to customers as well as various merchants with these new features.
The company also offers Prime Wardrobe — a “try before you buy” facility that enables customers to place an order online from a separate section of Prime Wardrobe on its site. Further, Prime Wardrobe shoppers get the option of a vast collection of clothes, shoes and accessories from numerous brands.
Amazon’s augmented reality-powered interactive mobile experience, namely ‘Virtual Try-On for Shoes,’ remains noteworthy. The feature enables customers to check the look of a pair of shoes virtually from every angle just by tapping the “Virtual Try-On” button on the product details page and then pointing the camera at their feet.
All these endeavors will help Amazon penetrate rapidly into the booming online retail market for fashion, which, in turn, will benefit its e-commerce business, which remains its key growth driver and contributes maximum to its revenues.
Shares of Amazon have gained 68.5% over the past year, outperforming the industry’s growth of 36.7%.
The company’s deepening focus on enhancing its e-commerce experience on the back of advanced technologies is expected to aid its customer momentum, which, in turn, will drive growth in its online store sales. This will benefit its financial performance in the days ahead.
The Zacks Consensus Estimate for 2024 revenues is pegged at $637.24 billion, indicating growth of 11.6% from 2023.
The consensus mark for 2024 earnings is pinned at $3.61 per share, which has been revised upward by 2.3% in the past 30 days.
Image: Bigstock
Amazon (AMZN) Boosts Fashion Arm With New AI-Backed Features
Amazon (AMZN - Free Report) is leaving no stone unturned to bolster its fashion retail division, Amazon Fashion, on the back of its robust strategies and innovative technologies.
This is evident from the latest introduction of four AI-powered features — personalized size recommendations, review highlights, re-imagined size charts and fit insights, which are basically designed to address the fashion fit problem that customers often face while shopping online.
The personalized AI-driven size recommendations are based on machine-learning models and deep learning-based algorithms. This size recommendation system analyzes millions of data on style, size charts and customer reviews of various products, with the help of which it generates billions of size recommendations.
The algorithm continuously learns and adapts to the changes in customers’ size needs.
Another feature called Fit Review Highlights, which creates a review highlight for each customer based on their recommended size, is backed by large language models (“LLMs”). The feature offers personalized size guidance based on reviews from customers who have purchased the item in the same size.
Re-imagined size charts, which are also powered by LLMs, are designed to improve the accuracy of size charts by extracting and cleaning size chart data from multiple sources.
On the other hand, the Fit Insights Tool, which leverages an LLM model to extract and aggregate customer feedback on fit, style and fabric, contextualizes product returns and size chart analyses with customer reviews. It helps brands understand customer fit issues and reduce the number of related returns.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Amazon to Benefit
Amazon strives to deliver an enhanced fashion shopping experience to customers as well as various merchants with these new features.
The company also offers Prime Wardrobe — a “try before you buy” facility that enables customers to place an order online from a separate section of Prime Wardrobe on its site. Further, Prime Wardrobe shoppers get the option of a vast collection of clothes, shoes and accessories from numerous brands.
Amazon’s augmented reality-powered interactive mobile experience, namely ‘Virtual Try-On for Shoes,’ remains noteworthy. The feature enables customers to check the look of a pair of shoes virtually from every angle just by tapping the “Virtual Try-On” button on the product details page and then pointing the camera at their feet.
All these endeavors will help Amazon penetrate rapidly into the booming online retail market for fashion, which, in turn, will benefit its e-commerce business, which remains its key growth driver and contributes maximum to its revenues.
Shares of Amazon have gained 68.5% over the past year, outperforming the industry’s growth of 36.7%.
The company’s deepening focus on enhancing its e-commerce experience on the back of advanced technologies is expected to aid its customer momentum, which, in turn, will drive growth in its online store sales. This will benefit its financial performance in the days ahead.
The Zacks Consensus Estimate for 2024 revenues is pegged at $637.24 billion, indicating growth of 11.6% from 2023.
The consensus mark for 2024 earnings is pinned at $3.61 per share, which has been revised upward by 2.3% in the past 30 days.
Zacks Rank & Other Stocks to Consider
Currently, Amazon carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Zacks Retail-Wholesale sector are The Gap (GPS - Free Report) , Expedia Group (EXPE - Free Report) and Target (TGT - Free Report) . The Gap currently sports a Zacks Rank #1 (Strong Buy), Expedia and Target each carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Gap has gained 86.7% over the past year. GPS' long-term earnings growth rate is 12%.
Expedia's shares have rallied 75.9% over the past year. EXPE's long-term earnings growth rate is 25.31%.
Target has lost 4.9% over a year. TGT’s long-term earnings growth rate is 14.18%.