What Shopify and Amazon can learn from Mimetic Theory

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

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

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.

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

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

As we discussed in last week’s essay, Instagram is both a blessing and a curse for Shopify. On the one hand, it is the perfect discovery channel for the type of products that are typically sold by Shopify merchants: visually appealing objects you didn’t even know you wanted (fashion, homeware, furniture, etc). On the other hand, too much reliance o... 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.

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.