Amazon Didn’t Win the Holidays Because of Prices — It Won Because of AI

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A CEO Hot Take by Ken Burke

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Every holiday season, the postmortems look the same.

“Amazon won because of Prime.”

“Amazon won because of logistics.”

“Amazon won because they can discount harder than anyone else.”

That explanation used to be true.

In Holiday 2025, it stopped being true.

Amazon didn’t dominate this holiday season because it was cheaper.

It dominated because it answered shoppers’ questions and got them to products faster than

anyone else.

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The Real Reason Amazon Converted More Shoppers

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During Cyber Week, more than half of Amazon shoppers interacted with its AI shopping

assistant, Rufus. Not clicked. Not hovered. Engaged.

Those shoppers converted meaningfully higher than shoppers who didn’t use the AI assistance.

They didn’t just browse more. They didn’t just stay longer. They bought and bought more often.

Why? Because shopping friction didn’t exist anymore.

Instead of guessing which product to choose, shoppers asked.

Instead of opening ten tabs, they compared instantly.

Instead of abandoning carts, they gained confidence.

That is not a pricing advantage. That is a decision advantage.

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Amazon Didn’t Train Shoppers to Find Deals. It Trained Them to Expect Answers

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This is the shift most retailers are still missing. Consumers didn’t suddenly become more patient,

more price-sensitive, or more loyal. They became more assisted.

The fastest path to purchase is no longer search → filter → compare → hesitate.

It’s ask → understand → decide.

Once shoppers experience that, they don’t go back. This is why Amazon saw engagement with

its AI assistant dramatically grow during the holidays.

The truth for all other retailers is uncomfortable: most shoppers leave because they’re unsure.

Unsure if a product fits their needs. Unsure if it works with what they already own. Unsure

which option is actually better.

Amazon removed uncertainty at SCALE.

That’s why AI-assisted sessions converted higher and AI became a revenue driver, not a novelty.

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This Is the Moment Retailers Will Look Back On

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Every major shift in commerce has a moment where the narrative changes.

Search replaced catalogs.

Mobile replaced desktop.

Holiday 2025 was that moment for AI-driven shopping.

Not because it was flashy. Not because it was experimental, but because it worked.

AI shopping assistants are no longer an “innovation” retailers can test someday. They are now

table stakes for how modern shoppers expect to buy.

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The Hard Truth for Everyone Else

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You’re no longer competing on products alone.

You’re competing on how quickly and confidently shoppers can decide.

Retailers who treat AI as an add-on will continue optimizing pages, tweaking filters, and

wondering why conversion rates won’t move.

Retailers who treat AI as the front line of the shopping experience will quietly take market share.

That gap will only widen.

Because shoppers have already made their choice.

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