• Skip to primary navigation
  • Skip to main content

Invent Like An Owner

Hear from the Folks who built Amazon.com

  • SUBSCRIBE
  • Podcast
  • Amazon Launch Timeline
  • Blog
  • About
  • Contact
  • Show Search
Hide Search

How Amazon Created a Personalized Store for Every Customer | Josh Petersen & Matt Round

Dave Schappell · June 16, 2021 · Leave a Comment

Today, in the Invent Like An Owner Podcast, Dave speaks with Josh Petersen and Matt Round. The conversation takes us back to Amazon’s early years, when the Personalization team was put together and built on features such as Similarities, Instant Recommendations, Cart Recommendations and more. The team strove to iteratively improve key features; over time, the Personalization and Automation worked toward Jeff Bezos’ vision of “a store for every customer”. They also talk about the effectiveness of small cross-functional teams, feature testing through Web Labs, MRT (Matt’s Recruiting Tool) – a tool still being used today, and much more.

For over 20 years at Amazon, Josh Peterson helped create highly visible and innovative technologies used by millions of customers. He was the Director for the Personalization team and then led different teams at Amazon including Prime Photos/Cloud Drive, AWS, and Bots/NLU. Matt Round is the former Director of Software Development, and later became the Managing Director responsible for establishing the Amazon Development Centre in Scotland (a wholly owned subsidiary of Amazon.com) including full responsibility for team building, project selection and implementation oversight.

Episode Resources:

  • Josh Petersen’s LinkedIn
  • Matt Round’s LinkedIn
  • Find Dave on LinkedIn and Twitter

This episode is sponsored by Ideoclick, led by ex-Amazonians Justin Leigh, Tom Furphy, Andrea Leigh, and Mike Burrington. Ideoclick is the leading e-commerce optimization platform for brands to win Amazon and e-commerce.

Podcast TranscriptDownload

Memorable Quotes

Memorable Quotes from the Interview, discussing helpful topics for entrepreneurs then and now:

"You don’t actually know what’s going to work. You need a framework for getting things out quickly, measuring them, doubling down if they work, or moving on if they don’t." — Josh Petersen Share on X "It’s common that people think ‘we’ve got this one great idea and we’re going to make it happen’. It’s more efficient to work through five ideas and then refine them." — Josh Petersen Share on X "Data trumps intuition. My hunches and intuition were wrong time and time again. Listening to the data is very important." — Matt Round Share on X

Fun Photos and Memorabilia

Declaration of Personalization and Automation – presented to Josh Petersen on Jan 2 2002 – photo from Josh Petersen

Seattle Weekly ad to Amazon Amabot to Russell Dicker
Seattle Weekly ad/message to Amazon Amabot (and Russell Dicker in particular 🙂 ) – photo from Josh Petersen

Recommendations home - Matt Round
Recommendations home – Matt Round
Listmania Slots (first Sponsored Search content) - photo from Matt Round
Listmania Slots (first Sponsored Search content) – photo from Matt Round
Unpersonalized Amazon Homepage Gateway including New For You on right - photo from Matt Round
Unpersonalized Amazon Homepage Gateway including New For You on right – photo from Matt Round
Recommendations on the Amazon website (Recos on Homepage, Listmania & Slots (first sponsored search content) and Unpersonalized Gateway with New for You — courtesy of Matt Round

Amazon.com New For You v1 Feb 28 2000 - Josh Petersen
Amazon.com New For You v1 Feb 28 2000 – Josh Petersen
Amazon.com Personalization Services : Iquitos Jul 20 2000 - Josh Petersen
Amazon.com Personalization Services : Iquitos Jul 20 2000 – Josh Petersen
Amazon.com 8-is-not-enough-July 20 2000 - Josh Petersen
Amazon.com 8-is-not-enough-July 20 2000 – Josh Petersen
Amazon.com Clickstream Aug 2 2000 - Josh Petersen
Amazon.com Clickstream Aug 2 2000 – Josh Petersen
Amazon.com Favorites Aug 10 2000 - Josh Petersen
Amazon.com Favorites Aug 10 2000 – Josh Petersen
Amazon.com Clickstream 2.0 Sept 21 2000 - Josh Petersen
Amazon.com Clickstream 2.0 Sept 21 2000 – Josh Petersen
Amazon.com Recommendations Oct 26 2000 - Josh Petersen
Amazon.com Recommendations Oct 26 2000 – Josh Petersen
Amazon.com Listmania Oct 26 2000 - Josh Petersen
Amazon.com Listmania Oct 26 2000 – Josh Petersen
Amazon.com Gift-Wizard Nov 2 2000 - Josh Petersen
Amazon.com Gift-Wizard Nov 2 2000 – Josh Petersen
Amazon.com Inline Messaging Nov 16 2000 - Josh Petersen
Amazon.com Inline Messaging Nov 16 2000 – Josh Petersen
Amazon.com 3 Column Search Dec 28 2000 - Josh Petersen
Amazon.com 3 Column Search Dec 28 2000 – Josh Petersen
Amazon.com Favorites 2.0 Mar 2001 - Josh Petersen
Amazon.com Favorites 2.0 Mar 2001 – Josh Petersen
Amazon.com Session Sims 2.0 Mar 15 2001 - Josh Petersen
Amazon.com Session Sims 2.0 Mar 15 2001 – Josh Petersen
Amazon.com Clickstream 3.0 Mar 21 2001 - Josh Petersen
Amazon.com Clickstream 3.0 Mar 21 2001 – Josh Petersen
Amazon.com Order Follow Up Email May 8 2001 - Josh Petersen
Amazon.com Order Follow Up Email May 8 2001 – Josh Petersen
Amazon.com Your Store Sept 6 2001 - Josh Petersen
Amazon.com Your Store Sept 6 2001 – Josh Petersen
Amazon.com Auctions Mar 30 1999 - Josh Petersen
Amazon.com Auctions Mar 30 1999 – Josh Petersen
Amazon.com v5 Music Jun 11 1998 - Josh Petersen
Amazon.com v5 Music Jun 11 1998 – Josh Petersen
Celebratory Amazon Launch ‘Tokens’ from 1998 to 2001 – Photos from Josh Petersen

What to Listen For:

  • 00:00 Intro
  • 02:01 Personalization feature examples
  • 05:17 How Personalization features were evaluated
  • 08:00 Item-to-Item Similarities versus Collaborative Filtering
  • 09:40 Personalization aims to build out a store for every customer
  • 12:17 Putting together a team focused on Personalization
  • 14:12 Tracking which features were generating which results
  • 17:12 How do Web Labs work?
  • 20:17 Big wins for the Personalization features
  • 24:22 How did Personalization work for new customers?
  • 28:53 Impact on Editorial team when Personalization became more automated
  • 32:30 Amazon’s Customer Reviews
  • 34:14 Emergence of advertising on Amazon
  • 39:29 Two Pizza Team model: small cross-functional teams with a narrow focus
  • 42:57 Personalized merchandising vs Automated merchandising 
  • 45:35 Matt’s Recruiting Tool (MRT): How and Why Matt built a simple tool to manage the interview process
  • 50:24 The Amabot Story
  • 54:46 Iquitos: the first successful microservice at Amazon  
  • 59:10 Pressure from the product side produced innovation on the technical side
  • 01:00:14 By testing a lot of things, you learn about things you don’t know
  • 01:02:56 Listening to data is very important

Podcast Are Right A Lot, Bias for Action, Customer Obsession, Deliver Results, Dive Deep, Invent and Simplify, Learn and Be Curious, Think Big

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Copyright © 2025 · InventLikeAnOwner.com

  • Home
  • Podcast
  • Amazon Launch Timeline
  • Blog
  • About
  • Contact
  • Privacy Policy
  • Terms of Service