The AI Shopping Wars: When Amazon’s Founder Backs Its Potential Rival-Perplexity Pro Shop

Bob Hutchins
2 min readNov 17, 2024

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In my over two decades of working in technology and e-commerce, I’ve observed Amazon’s Jeff Bezos make countless strategic moves. But his latest investment might be his most intriguing yet — backing Perplexity, an AI startup now positioning itself to challenge Amazon’s core business model.

The irony isn’t lost on me. The very man who revolutionized online shopping by introducing the “one-click purchase” button is now financially supporting a platform that promises to do the same thing, albeit with an AI-powered twist. It’s as if Bezos is hedging his bets on the future of e-commerce, acknowledging that the very model he pioneered might be due for disruption.

Perplexity’s Pro Shop represents something potentially transformative: the merger of AI-driven research with seamless purchasing. While Amazon excels at showing you products when you know what you want, Perplexity aims to help you figure out what you want in the first place. It’s the difference between searching for “wireless earbuds” and asking “What are the best wireless earbuds for running in the rain?”

This shift could fundamentally change how product discovery works online. For years, Amazon has relied heavily on its review system and recommendation algorithm, both of which have become increasingly cluttered with sponsored content and questionable authenticity. Perplexity’s AI-driven approach promises to cut through this noise, offering personalized recommendations based on natural language conversations rather than keyword searches.

But IMO here’s where it gets interesting: Bezos’s investment suggests he sees something bigger at play. The future of shopping might not be about marketplaces as we know them, but about conversation-first interfaces that understand context and intent. It’s a bet that the next generation of shoppers will prefer talking to an AI about their needs rather than scrolling through endless product listings. And I tend to agree with him.

But….can Perplexity build a merchant network robust enough to compete with Amazon’s vast marketplace? Will consumers trust an AI to make product recommendations more than they trust user reviews? And perhaps most intriguingly, what does Bezos know about the future of e-commerce that the rest of us don’t? 👀

We have all watched Amazon grow from an online bookstore to a global empire, and I can’t help but wonder if we’re witnessing the early stages of e-commerce’s next evolution. Bezos’s investment in Perplexity might just be his way of telling us where the puck is heading.

The ultimate irony? If Perplexity succeeds, it could make the traditional Amazon shopping experience feel as outdated as the brick-and-mortar stores Amazon itself disrupted. And somewhere, Jeff Bezos will be smiling, knowing he saw it coming — again.

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Bob Hutchins
Bob Hutchins

Written by Bob Hutchins

Bridging Silicon and Soul. AI Advisor, Digital Strategy, Fractional CMO, The Human Voice Podcast, Author-Our Digital Soul- https://lnk.bio/7NAd

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