Amazon: What could it do with all that data?

[Mira]

I was thinking about Amazon and how much data it has on readers who buy from it.

Amazon can track what each individual buys; how often they buy; whether they buy recommended items; if they write reviews; what they think of the books they buy if they do write reviews; do they buy a series; do they buy other products than books; how many books do they buy at once; do they buy more at certain times of the year; and on and on.

Amazon can also take individual data and group it by region, age, gender, reading preference, etc.

Never before has anyone had such access to data about reader preference and buying habits.

What could they do with that data?

I think reader data may be a good thing - it opens the door to market research, which is notably lacking in the industry. On the other hand, that data is not public property, which makes it very interesting.

I'm curious what other people think, if they want to discuss this.

[Holly]

The purpose of all that data is to sell things.

The elves in the basement at Amazon analyze what people buy and send tailored email recommendations, plus put tailored recommendations on the home page. Look at the home page the next time you click on it. It will probably show you the products you looked at before, plus will recommend similar items.

They also must use the data for their advertising campaigns. If a lot of teenagers are buying a certain product, the advertising/marketing people will design a campaign to appeal to them (somebody with acne meds reading a book). Same thing to promote products that older people buy (somebody using denture cream while they read). My ads would be horrible, but that's my theory.

[Mira]

Holly - thanks! I totally agree that Amazon is using that data to sell! I wonder how much income the recommendations alone bring into the company.

Do they have advertising campaigns? If not, I wonder why not. They are sitting on a powerhouse of data. That alone makes the playing field with traditional publishers very uneven. I wonder if traditional publishers are aware of that. And I honestly don't know how they could combat it.

Knowledge is power.

Or am I taking it too far?

[Holly]

They are sitting on a powerhouse of data. That alone makes the playing field with traditional publishers very uneven. I wonder if traditional publishers are aware of that. And I honestly don't know how they could combat it.

Hi, Mira. Amazon isn't a publisher (as far as I know). They're just an online bookstore.

But hey, I like the idea of Amazon being as powerful as the CIA. Sounds like the plot for a novel...

[Mira]

They are sitting on a powerhouse of data. That alone makes the playing field with traditional publishers very uneven. I wonder if traditional publishers are aware of that. And I honestly don't know how they could combat it.

Hi, Mira. Amazon isn't a publisher (as far as I know). They're just an online bookstore.

But hey, I like the idea of Amazon being as powerful as the CIA. Sounds like the plot for a novel...

Lol, Holly. :)

You know, I'm not sure how many people know this, but I was browsing Amazon and thinking about e-publishing. I read the contract for a self-published e-book. There's a section in there that says Amazon has the right to pick your book up and publish it, if it so chooses.

Food for thought.....I wonder what Amazon's long term plans are......:)

[Holly]

Hi, Mira. I didn't know that... Amazon really must be about to take over the world.

[Mira]

Hi, Mira. I didn't know that... Amazon really must be about to take over the world.

Holly, yes, I think so. Perhaps we should bake some cookies to welcome our new Amazon Overlords.

[Holly]

Well, triple rats.

I have this fantasy about selling an e-book under an assumed name (with all my Gettysburg ghost photos... whoops, there went a ghost just now... I live and work in a Civil War building), but if Amazon plans to suck up all my profits, I guess not.

Cookies? Heck, no. Bake something with Pepto Bismol in it.

[Mira]

Oh no, Holly. They'll still pay you royalties, just like a regular publisher. Although I'm not sure at what rate....but I'm sure you'd still have a legal right to negotiate.

It just means they have first option. They've never taken advantage of that, that I know of, but it's a very interesting little clause.

Of course, I'm not an agent or a lawyer, so I could be mis-reading it.

[J. T. SHEA]

Amazon is basically Sears-Robuck without the Chicago skyscraper. Remember when Sears took over the world? Oh, wait...