What Shopify and Amazon can learn from Mimetic Theory

As we discussed in last week’s article, Amazon – like Google – is primarily a search engine. But since all its search results – unlike Google’s – are products, it’s easy to rank them by price. If you already know what you want, there’s no point in searching on Google first. Your shopping journey starts and ends on Amazon.

Algorithms are not the reason why we buy things, no matter how good they are. Mimetic desire is.

Rather than an algorithmic feed with random products, the app should feature collections of products that certain people use or recommend. Apps like Svpply and Kit have tried to build similar product recommendation services, but none of them have ever gained mainstream adoption. Yet I’m still convinced that there is a market for a stand-alone app t... See more

As a consequence, there isn’t a “best sneaker”. What you perceive as “the best” isn’t based on objective attributes, it depends on who you are trying to imitate.

The fact that Amazon just drastically reduced its affiliate fees is perfect evidence of how little negotiating power these individual sites have in this value chain, despite their collective importance.

This is why curation is underrated – not because it is actually better than algorithmic suggestions, but because it is perceived as being better.

As a result, non-price driven Amazon purchase journeys initially start on other sites which help users figure out what the best product for them is (through curation and reviews). This is similar to the Shopify model, which relies on discovery channels such as Instagram and Pinterest to drive users to its stores.

Given their respective value chains, Amazon and Shopify both have an interest in becoming better at discovery. Technology companies have a tendency to (try to) solve discovery with automated recommendation engines, but that’s not how we make purchase decisions.

Similarly, should Shopify decide to make its Shop app an actual discovery platform, it should build its recommendation feed around influencers – not shops.