Amazon algorithms to drive fashion recommendations instore

• Amazon unveils Amazon Style, its newest physical store built around personalization
• Amazon Style uses machine learning algorithms to produce tailored, real-time recommendations for each customer
• The machine learning algorithms can also match budget, fit, and style

While fashion and AI don’t often go hand in hand, Amazon Inc’s AI algorithms are reinventing the entire industry and experience. The company has just showcased its newest brick-and-mortar store, Amazon Style. However, unlike its other stores, Amazon Style is built around personalization.

According to the world’s largest online retailer, their machine learning algorithms will produce tailored, real-time recommendations for each customer as the shop. Customers will just need to browse the store and scan items that catch their eye and the algorithms will recommend picks for them.

“For an even more tailored experience, customers can share information like their style, fit, and other preferences to receive more refined recommendations. Even shopping for deals is personalized and convenient — customers can easily view deals in store that match their preferences right in the Amazon Shopping app,” said Simoina Vasen, Managing Director at Amazon Style in a statement.

The Amazon Style store comes at a time whereby the retail industry is facing its biggest challenge, which is getting customers to come to their stores. While advancements in e-commerce applications are already offering a more personalized experienced have enabled online shopping to be profitable for retailers, customers are still often spoilt for choices on deciding what they really want.

“Personal styling used to be expensive and feel exclusive, but with Amazon Style’s sophisticated technology, unique store design, and thoughtful curation, we’ve made it easier than ever for customers to discover items they’ll look and feel great in,” added Vasen.

Vasen also pointed out that their physical team built several new technologies that work together to make it effortless for customers. This includes Amazon Style’s mobile shopping experience within the Amazon Shopping app and fitting room touchscreens. The machine learning algorithms not only provide personalized recommendations but can also match budget, fit, and style.

“Amazon Style uses the same technologies and processes as Amazon’s fulfillment centers to store more items that can be delivered from back-of-house to a customer within minutes. Other innovations that enable the experience include new complex inventory management systems, new technology to support customer service, and Amazon One, which is our palm recognition service, for fast and convenient checkout,” explained Vasen.

With the first Amazon Style store expected to open later this year, Vasen also pointed out that physical employees will still be present in the store to provide customer service, deliver items, help customers checkout and manage back-of-house operations.

Amazon fashion algorithms have already been used to help customers choose outfits in the past. The algorithms were applied to the apps to match users to their desired outfits. The Amazon Style will be the first physical store that enables this new experience and may just be able to boost physical retail sales during these crucial pandemic times.

Last year, Wells Fargo research showed that Amazon has surpassed Walmart as the top apparel retailer in the US. Part of its success was also due to the e-commerce boom caused by the pandemic. Wells Fargo estimates that Amazon’s apparel and footwear sales in the U.S. grew by roughly 15% in 2020 to more than US$41 billion, which is around 20% to 25% above rival Walmart.

While it remains to be seen how Amazon Style will impact the industry, the reality is that Amazon is taking fashion trends seriously along with reinvigorating physical retail, and might just be able to have the right algorithms to keep their customers satisfied.