I read all 22 Amazon Shareholder letters.
I wanted to understand how Amazon used machine learning to drive the customer experience. Here's what I learned.
Amazon is a Platform-as-a-Service (PaaS) company that just happens to be a retailer
Jeff Bezos has been consistent about Amazon's goal since the beginning - deliver an amazing customer experience. That means providing vast selection, fast convenience, and price reductions. Amazon has invested in building massive platforms, whether it's fulfillment or cloud computing centers, to support the pillars of selection and convenience. The last pillar, price reductions, is a result of the efficiencies from scaling.
Here's their playbook: (a) create a platform for their own business needs (b) formalize this platform into an ecosystem by opening it up to 3rd-parties (c) refine this platform into a self-service option that's easy-to-use with an interface. Lather, rinse, repeat.