Amazon.com (AMZN) has scrapped its TikTok-style shopping aid Inspire inside its mobile app. The feature, which was introduced in 2022, allowed shoppers to upload videos and images of products available on Amazon.com, discover products and shop from content created by influencers, brands and other customers.
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Shoppers Being Directed to AI
Logging on to the site today, shoppers are being informed that “Inspire is no longer available in the Amazon shopping app.” Instead, beneath a photo of a rather pained-looking dog named Milly, users are being directed to use Rufus – Amazon’s AI shopping assistant launched last year. “We regularly evaluate various features to better align with what customers tell us matters most, and as part of that, Inspire is no longer available,” an Amazon spokesperson told MT Newswires. “Customers can continue to get inspiration across the Amazon store with Shop by Interest, the new Window Display on homepage, Creator storefronts, curated collections, and more.”
Influencers Not So Inspired
Tech experts have speculated that Inspire may have been discontinued because of the low rates of pay it offered influencers to submit their videos. This may have led them to use other more generous channels instead. The move comes despite continued interest and demand for online shopping, the rise of influencers and the issues faced by ByteDance-owned TikTok which is facing a ban in the U.S. The fear is that TikTok could be used by China as a tool for spying and political manipulation, although this has been denied by the company and China itself. That would, it seems, create market share opportunities for Amazon.
But, instead Amazon seems to be focusing on developing its AI channels as well as partnerships with the likes of other tech providers such as Snap (SNAP) where Amazon shoppers can buy products directly from ads on the social app. AMZN’s share price was down slightly in pre-market trading.
Is AMZN a Good Stock to Buy?
On TipRanks, AMZN has a Strong Buy consensus based on 47 Buy and 1 Hold rating. Its highest price target is $306. AMZN stock’s consensus price target is $268.91 implying an 18.65% upside.
