Before Amazon, the world of retail was dominated by physical brick-and-mortar stores where consumer brands and retailers collaborated on selling products. The key to success for brands was to ensure that their products had optimal location and share of shelf space within these physical stores to ensure winning at the moment of purchase.
Now, with Amazon, consumer behavior controls the shelf instead of the relationship between brands and retailers. What’s on a shelf reflects what consumers want to buy, not which brand has the best relationship with a retailer. How does Amazon determine what’s popular with consumers? Algorithms.