Amazon Patent Points to Surprise Gifts: Mulpuru

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Jan. 21 (Bloomberg) –- Forrester Research Principal Analyst Sucharita Mulpuru and Bloomberg’s Jon Erlichman discuss Amazon’s use of data to predict future purchases and reduce delivery times. They speak with Emily Chang on Bloomberg Television's "Bloomberg West.” (Source: Bloomberg)

Understand it?

One of the challenges is we don't really know yet but there are some things that were revealed in this patent application that are very interesting and could be telling.

They will not put this in a for every single order that comes to your amazon prime.

For instance, if there is a new block buster book release, say for instance another harry potter book homologue they would be able to do is take a look at all of the people who potentially have ordered within the series and who have often ordered on the release date and send those items to the nearest shipping destination where they could be shipped and not actually label the product until it is essentially in the last mile.

It appears that what they are doing is basically leaving this to the -- leaving the address field blank which means they would need to be significant integration with carriers in order to actually execute and make it happen.

This would not involve you getting charged for something that you did not want?

Given that amazon is so customer-centric, i doubt we would ever see anything like that where they would just bill you.

There was also some indication in the patent application that what they may do is proactively send you something as a surprise , something like that, which is very amazon.

They send you something that you may have in your saved a shopping cart or something you may have come back to clicked on a number of times.

There are a number of privacy issues and how that would look to customers that have to naturally be taken into consideration but i think the idea is really to reduce the time it takes for a package to actually get to shoppers.

Unless you are paying for something like next day or second day, there is often a lag time and would something like this could do is potentially reduce some of that.

I don't know what's crazier, trying to read my mind and potentially charge me money for it or starting a television service, a live tv station, or drones.

I like the drones the best, but you are right.

Coming back to the tv example, let's talk about the service they already have, prime instant video.

Here radically it gets better.

If i use it and amazon has a pretty good sense of who i am and suggest shows for me to watch.

Netflix talks all the time about the benefits of having the proprietary technology that allows them to give you a better consumer experience.

As you were just talking, amazon is all about the consumer.

There is always going to be a level of creepiness but i think there is this huge level of opportunity if you are a come in a like amazon especially going back to the lead story, your cable grid has no idea what you want to watch when you want to watch it whereas a lot of these other companies born on the internet can do just that.

When it comes to the retail side of this, how do you see this playing out?

They have big dreams -- drones, knowing what you want before you buy it.

In reality, what are the next five years in terms of amazon e- commerce really look like?

I think amazon has a lot going for it that are the same time, amazon boldly recognizes they have challenges ahead of them.

Some of them are in the fact that they are extremely price competitive which makes them very attractive to customers, but they struggle with profitability as a company.

They have a huge line item in the form of shipping costs.

If there is any way for them to reduce some of those line items and even by a modest way by reducing the amount of time it takes for a package to get somewhere or being able to cut some of those costs, it would have a really favorable impact on amazon altogether.

The challenge is as they continue to grow amazon prime, they make promises that the item will be there in two days and it is very expensive.

That is why an initiative like this could be very interesting for them.

Everybody wants their stuff as fast as they can get it.

Sucharita mulpuru, thank you, as

This text has been automatically generated. It may not be 100% accurate.

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