Leveraging Amazon’s “COSMO” Insights: Actionable Strategies for E-commerce Sellers
Amazon recently published a research paper on a system called COSMO—a large-scale e-commerce “common-sense knowledge” generation and serving system. Essentially, COSMO automatically collects and organizes knowledge around how shoppers use, combine, and think about products. This offers exciting insights that e-commerce sellers (including brands, agencies, and resellers) can leverage to stand out in a crowded marketplace.
In this blog post, we’ll dissect what COSMO is doing and, more importantly, translate its findings into actionable strategies for four crucial areas of Amazon selling:
PPC (Pay-Per-Click) Advertising
Amazon Demand-Side Platform (DSP)
Shipping and Logistics
Organic Amazon Search (SEO)
Let’s go!
What is COSMO?
In a nutshell, COSMO (as described by Amazon’s research paper) is a system that learns “common sense” relationships between products. It does this by analyzing massive volumes of data, such as product listings, customer reviews, and user behavior. Examples of the knowledge COSMO captures might include:
Usage Patterns: “These sneakers are commonly worn with certain types of socks.”
Product Complements: “Buyers of dog food often buy dog treats and toys as well.”
Category Context: “Certain health supplements are best stored at cool temperatures.”
Amazon then uses this knowledge to improve its product recommendations, its Q&A section, and even how it automatically populates product details. See some examples below:
Example of Frequently Bought Together with “Category Context”
Style Ideas using “Usage Patterns” to recommend a commonly worn together products
Why Should Sellers Care?
COSMO’s insights guide Amazon’s search and recommendation algorithms. By aligning your strategies with these insights, you can position your products for better visibility and improve conversions. Think of it like tapping into Amazon’s “collective shopping brain”: If you know how Amazon believes products fit into customers’ lives, you can optimize everything from your ad campaigns to your product descriptions.
1. PPC Advertising
a) Targeting Complementary Products
COSMO’s knowledge graph highlights products frequently bought or used together. For a pet supplement brand, for example, COSMO might identify strong correlations between dog vitamins and grooming tools. Use this data to:
Refine Keyword Targeting: Include relevant phrases like “dog grooming kit” in your ad campaigns to appear in searches where shoppers might also be considering your supplement.
Product Targeting Campaigns: Specifically target product detail pages of complementary items. If COSMO indicates that owners of large dog crates often also buy puppy training pads, you can target those crates’ detail pages with your ads.
b) Tapping into “Situational” Searches
Because COSMO picks up context (e.g., “People often wear these sneakers for running in cold weather”), you can create PPC campaigns that highlight those situations:
Seasonal Campaigns: If your product is relevant in a seasonal or situational context, bid on seasonal keywords (e.g., “winter running shoes”).
Lifestyle Themes: For home or fitness products, identify lifestyle themes (e.g., “home workout equipment”) and create ads that speak directly to those use cases.
2. Amazon Demand-Side Platform (DSP)
a) Retargeting Across the Web
Amazon DSP allows you to reach shoppers beyond Amazon’s marketplace. With COSMO’s insights, you can discover new audience segments:
Lookalike Audiences: If COSMO identifies that buyers of your product also frequently purchase certain complementary or even seemingly unrelated items, you can create lookalike audiences based on these buying patterns.
Cross-Category Retargeting: Suppose you sell eco-friendly cleaning products. COSMO data might show your customers also tend to buy zero-waste kitchen supplies. You can retarget shoppers who have viewed or purchased those items across the web, improving your chance to convert.
b) Contextual Advertising
Amazon DSP supports in-depth contextual targeting. By leveraging COSMO’s “common sense” knowledge—like the typical scenarios in which your product is used—you can place ads on external websites or apps that reflect similar contexts or interests.
For Example: If your product is linked to at-home coffee brewing, you might run DSP ads on coffee-related blog sites or recipe platforms.
3. Shipping and Logistics
a) Understanding Bundling and Order Patterns
COSMO’s insights can reveal which products are most often purchased together, which can help you organize your inventory and plan shipping in a more profitable way:
Bundle Offers: Create product bundles for items that often appear together in shopping carts. This not only boosts your average order value but can also reduce per-unit shipping costs if you package them as a single SKU.
Forecasting Demand: If there’s a common sense pattern (like pet food buyers also buying treats at a certain ratio), you can better forecast demand and avoid stockouts or overstock situations.
b) Reducing Returns
COSMO also gathers data from reviews, potentially hinting at reasons for returns. For instance, if a common sense pattern emerges that “many customers return size small because it runs smaller than expected,” you can:
Adjust Size Descriptions: Make sure product descriptions or sizing charts are crystal clear to reduce confusion.
Amazon’s Voice of the Customer (VoC) tool collects and displays customer feedback that can include return reasons, product dissatisfaction comments, and overall satisfaction metrics. Within VoC, you might see multiple customers citing reasons like “Item is smaller than expected” or “Size doesn’t match the chart.” This consolidates as a recurring theme in the feedback data.
Update Packaging/Instructions: If repeated returns are due to product misunderstandings (e.g., “incorrect usage instructions”), refine the packaging or instructions accordingly. This data can all be extracted from VoC reports.
4. Organic Amazon Search (SEO)
a) Incorporating Contextual Keywords
COSMO’s discovery of how products are used and what else they are used with can guide your keyword strategy. If your brand sells yoga mats and COSMO indicates that customers frequently mention “home workout,” “yoga blocks,” and “stretching routines,” you should:
Include these Phrases in Product Titles and Bullets: Expand your listing content to reflect these real-world use cases.
Craft Descriptive A+ Content: Use A+ Content (Enhanced Brand Content) to describe recommended accessories or routines. This signals to Amazon’s search engine that your listing is highly relevant for these related searches.
b) Building More Complete Product Descriptions
By referencing COSMO’s “common sense” attributes (like recommended storage conditions or ideal usage scenarios), you can strengthen your listing’s relevance:
Highlight Unique Features: If shoppers find it critical that “this water bottle is leakproof for running,” ensure it’s prominently stated to align with the discovered preferences.
Fill Information Gaps: If COSMO data shows that many customers use your protein powder for baking, add that in your listing. This not only improves SEO but also attracts a broader audience.
Putting It All Together: Action Steps
Audit Your Listings:
Compare what COSMO might say about how customers use your product vs. what your listings currently emphasize. Are you missing relevant keywords, features, or bundles?
Refine Ad Targeting with Complementary Insights:
Launch or update your PPC campaigns to include product targeting for items frequently used alongside yours.
Create custom DSP audiences based on buyer behavior or contextual usage.
Optimize Logistics and Inventory Planning:
Check if COSMO’s “common sense” patterns highlight frequently bundled items. Explore pre-packaged kits or combos.
Monitor reviews for recurring shipping or return issues, and adjust your packaging or instructions accordingly.
Continually Monitor and Adapt:
Common-sense patterns change over time—especially if new product categories emerge or shopper behaviors shift. Regularly update your strategies to align with the latest insights.
Final Thoughts
Amazon’s COSMO project underscores the immense power of “common sense” data—that is, the real-world contexts and connections shaping how customers shop. By integrating these insights into your PPC strategies, DSP targeting, shipping logistics, and SEO efforts, you tap into the same intelligence Amazon uses to enhance its own recommendation and search systems.
Remember: Success on Amazon isn’t just about having a great product; it’s about fitting seamlessly into customers’ lifestyles and thought processes. With COSMO’s help—plus a solid strategy—you can make sure your products show up in the right place, at the right time, for the right shoppers.
If you’re ready to level up your Amazon business, start applying COSMO’s common-sense knowledge to your marketing, logistics, and SEO. You’ll be amazed at how much a little extra “common sense” can do for your bottom line.
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Have more questions about adapting your Amazon business to these insights? Feel free to reach out or book a call with us.