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3 questions with Huseyin Topaloglu: A customer-centric approach to assortment optimization

Everyone optimizes for revenue. Amazon's senior scientist found something better.

Reporting by Amazon Science 1 min brief
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The KeyNews take

Why it matters

Amazon's approach to balancing customer utility with revenue in assortment optimization represents a strategic shift that other retailers should consider, though the 2021 publication date limits immediate relevance.

The key facts

3 to know

  1. INFORMS 2020 paper publication

  2. Amazon senior principal scientist research

  3. Customer utility + revenue optimization model

Go to the source

Amazon Scienceamazon.science

Publisher excerpt: In a paper published at INFORMS in 2020, the Amazon senior principal scientist and his co-authors factored in both revenue and "the expected utility to the customer from the purchase."
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