[ BDSN ] 7 game-changing insights about Amazon Rufus

STUMP BEZOS

Reviews are the 4th most important factor that affect consumer behavior when deciding to buy. Product photos are second. What is the most important factor?

[ Answer at bottom of email ]

💰 HOW RUFUS is REWRITING RULES of PRODUCT DISCOVERY

Andrew Bell has released a new deep dive into the inner workings of Amazon’s Rufus, which he says isn’t just a chatbot, but is also a smart shopping assistant that plans, remembers, and researches for customers.

Understanding how it works is now essential for sellers who want to stay visible.

Here’s part 1. Part 2 will be in Thursday’s newsletter.

7 Game-Changing Insights About Rufus

1. From Search to Missions

Old way: Customer searches "headphones," sees list, clicks one. New way: Rufus creates a complete comparison of 5 brands with prices, reviews, expert opinions, and personalized recommendations. It’s like having a knowledgeable friend help you shop.

2. It Plans Multi-Step Projects

Rufus doesn't just answer questions, it helps plan entire projects like birthday parties, weddings, or home offices. Your product needs to fit into these bigger stories, not just match keywords.

3. It Remembers Everything

Rufus builds a profile of each customer: their interests, family members, past purchases, and upcoming events. When someone asks for gift ideas, Rufus already knows their cousin loves art without being told again.

4. It Checks Facts in Real-Time

Unlike other AI, Rufus pulls current information from Amazon and trusted websites like TechRadar. It knows today's prices, what's in stock, and what experts are saying right now.

5. Context Beats Keywords

A tent described as "compatible with 50L backpacks" signals hiking. Cookware labeled "apartment-sized" targets city dwellers. Products with clear context get recommended more often.

6. Bundles Are Prioritized

Since Rufus plans complete solutions, it naturally suggests products that work together. An espresso machine listing that mentions grinders and frothers becomes part of a complete coffee setup.

7. Outside Opinions Matter

When experts cite your brand in buying guides or reviews, Rufus factors that into recommendations. Getting featured in "Best of 2025" lists creates trust.

The 3 Pillars of Rufus (Simple Version)

Think of Rufus like a super-smart shopping friend with three special powers:

Pillar 1: Reasoning (The Planner)

Like a friend helping plan a birthday party who thinks through decorations, games, food, and budget—not just showing you a cake. Rufus breaks down complex questions, compares options, reads reviews, and explains which choice is best for you.

Example: Ask about headphones, get a structured report comparing 5 brands with ratings, prices, expert reviews from TechRadar, and recommendations for your specific needs.

Pillar 2: Memory (The Friend Who Never Forgets)

Remembers your favorite things, your kids' interests, your pets, your upcoming trip—everything. So recommendations aren't generic, they're perfect for YOUR life.

Example: When planning gifts, Rufus remembers one cousin loves Nerf guns, another loves graphic novels, and suggests the right thing for each person automatically.

Pillar 3: Real-Time Sourcing (Always Up-to-Date)

Can instantly check the internet for latest prices, availability, reviews, and expert opinions. Brings back the most current answer every time.

Example: Knows if a product price just dropped, reads today's reviews, and checks what's actually in stock right now.

Reasoning Path Optimization (RPO):
The New Way to Get Found

What Is It?

RPO is about fitting your product into customer missions. It works WITH keyword research, not instead of it.

Old Question: "What keywords will people search?"
New Question: "What projects are people doing, and how does my product help?"

How Keywords and RPO Work Together

Keywords tell Rufus: This is a tent
RPO tells Rufus: This tent is for weekend hiking, fits in backpacks, works for 2 people, handles 3 seasons, pairs with lightweight sleeping bags

Keywords get you noticed. RPO keeps you in the recommendation.

5 Ways to Make Your Listings Mission-Ready

1. Signal What Comes Next "Tent fits 50L backpacks and pairs with lightweight sleeping bags" → Helps Rufus understand the complete hiking mission

2. Make Bundling Obvious "Complete your espresso setup: pairs with grinders, frothers, and premium beans" → Missions rarely stop at one purchase

3. Work for Multiple Situations "String lights for weddings, patios, holidays, and year-round gardens" → More missions = more recommendations

4. Use Lifestyle Language "Apartment-sized and induction-ready" signals city dwellers "Trail-tested in Rocky Mountains" signals serious hikers

5. Focus on Outcomes "Reduces desk fatigue for long workdays" beats "ergonomic design" → Customers care about results, not just features

Understanding Inference Pathways

What are they? The logical connections Rufus makes when helping customers.

Example Chain: IF planning backyard wedding
AND 50 guests
AND $10,000 budget
AND rustic style
THEN recommend: string lights + wooden seating + natural décor + weather backup items

In part 2 in Thursday’s edition of BDSN, we’ll show you exactly how to use this in your listings to make sure you are fully optimized.

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🌎 INTERESTING STATS

In 2015, Chinese sellers represented only 7% of new Amazon.com signups. By 2024, that share skyrocketed to 62%, reversing positions with the U.S., which now accounts for just 27%.

Today, Chinese businesses make up half of all active sellers worldwide. Their dominance stems from advantages in AI and supply chain efficiency, turning price into the key battleground.

Still, U.S. sellers continue to generate more revenue per store, keeping the overall profit distribution more balanced than the seller count suggests.

🏹 WHAT REALLY KILLED the AMAZON AGGREGATORS

In a revealing interview with Marketplace Pulse, Thrasio co-founder John Hefter gave the first insider account of what went wrong with the aggregator boom, and it wasn't the business model itself.

The Bubble That Broke Everything

Hefter admits that when Thrasio started, they were acquiring brands at 2x EBITDA multiples. But as over 100 aggregators flooded the market with $12.3 billion in 2021 (75% of that was debt), competition drove prices to 7x multiples for what Hefter calls "Chinese vaporware garbage."

The aggregators destroyed their own model. Their capital influx eliminated the favorable economics that made consolidation viable.

The Operational Nightmare

Speed compounded the valuation problem. Thrasio grew from 4 founders to 1,600 employees across 10 offices in just 2.5 years, acquiring 200 brands. Hefter revealed a costly inventory ordering error where a sample exercise was accidentally processed as real orders across nearly the entire portfolio costing hundreds of millions of dollars.

The Model Still Works—Just Not in a Bubble

While Thrasio filed for bankruptcy, software aggregators like Threecolts (raised $200M) and Carbon6 (sold for $210M) thrived using the same consolidation playbook. The proof: the model works with the right assets and disciplined execution.

Today’s Aggregator Environment

The market has matured. Amazon sellers generating over $1M annually now number over 100,000. Strategic buyers still dominate the acquisition market, but they're looking for sophisticated operations, not just revenue. If you're building to sell, operational excellence matters more than ever.

Thrasio's collapse wasn't about whether consolidation works, it was about what happens when easy money meets impossible valuations.

 🔗 BDSN MYSTERY LINK of the DAY 🔗

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Don't believe it? Check out the results from the Blueland Micro Influencer campaign which generated a 13X ROI scaling up influencers on Amazon.

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🗜️ GOOGLE’S “BUY FOR ME” is IMMINENT

Google is on the verge of launching an agentic checkout system where Google's AI agent completes purchases on your behalf at merchant websites (not a hosted checkout).

The workflow:

  • Find product → Track price → Receive alert when price drops → Authorize agent to buy → Agent completes checkout using saved Google Pay info

Signs It's Imminent

Recent changes detected in the past 24-48 hours:

  • New 3×4 product card matrix in Google AI Mode with enhanced variation support

  • Updated "Track price" UI now includes "Buy for me" messaging

  • New Google Pay help page with detailed FAQs about the feature

Key Limitations (Still Present)

  1. Only triggered by price drops - can't buy directly from search results

  2. Google Pay only - limits to ~10% of online merchants that accept it

Limited initial adoption likely due to the two constraints above.

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📛  AMAZON INFLUENCER PROGRAM QUICK START GUIDE

What It Is

  • Easy entry into affiliate marketing (much easier than traditional affiliate marketing)

  • Create short product review videos that appear on Amazon product pages

  • Earn commissions when people buy after watching your videos

Getting Started

  1. Get Approved: Create a TikTok account, post daily for 30 days, then apply

  2. Demo Videos: You'll need 3 demo videos showing simple product reviews

  3. Start Simple: Review everything you already own in your house first

Basic Rules

  • Don't mention actual prices

  • No kids in videos (unless you're also in it)

  • No private info (barcodes, license plates)

  • Avoid health claims like "all natural" or extreme weight loss

  • No swearing

  • Keep videos around 60 seconds

The 80/20 Strategy: Creator Connections

  • Most Important: Apply to Creator Connections daily (brand campaigns)

  • These pay 10-50% commission vs. standard 2%

  • Brands often send free products to review

  • Use tools like Viral View or Oink to find and manage these

  • Reach out to brands daily for freebies.

  • Run "Fetch sales" scans daily

Essential Tools (10% off with code EAM)

  • Viral View: Shows product profitability scores, revenue data, and helps identify high-potential products

  • Oink for Influencers: Automatically finds and applies Creator Connections to your sales, tracks earnings

Production Tips

  • Keep it simple: No fancy equipment needed

  • Speed is key: Aim to make videos in 4 minutes or less

  • Volume matters: Goal of 100+ videos per month

  • Don't overthink: Just talk naturally about the product for 60 seconds

  • Answer common questions: Check product Q&A section for what to address

Realistic Expectations

  • Income: $1-2 per video per month after 3 months

  • Goal: 1,000 videos = $1,000+ monthly income

  • Seasonal boost: Post seasonal content early (Halloween, Christmas)

Key Success Factors

  1. Consistency: Post videos daily

  2. Volume: More videos = more income

  3. Creator Connections: Focus on high-commission campaigns

  4. Speed: Don't spend more than 5 minutes per video

  5. Seasonal timing: Get ahead of holidays and trends

🥃 PARTING SHOT

“You can’t just open a website and expect people to flood in. If you really want to succeed you have to create traffic.”

Joel Anderson, Former CEO, Walmart

✌🏼 See you again Thursday …

The answer to today’s STUMP BEZOS is
Price is the most important factor affecting behavior.