Big Technology Podcast: Amazon's Head Of Prime on Tariffs, Alexa Plus Rollout, and AI Differentiation — With Jamil Ghani

Release Date: April 30, 2025
Host: Alex Kantrowitz
Guest: Jamil Ghani, Vice President of Amazon Prime

1. Introduction

In this episode of the Big Technology Podcast, host Alex Kantrowitz engages in an in-depth conversation with Jamil Ghani, the Vice President of Amazon Prime. The discussion navigates through Amazon's response to the ongoing trade war, the strategic rollout of Alexa Plus, advancements in AI, and the company's evolving infrastructure.

2. Amazon’s Stance on Tariffs

Clarifying Misreporting on Tariffs

The episode kicks off amidst misinformation regarding Amazon's handling of tariffs.

• Alex Kantrowitz [03:26]: "Punchbowl News reported that Amazon is going to start displaying how much an item's cost is derived from tariffs... Jamil, could you just confirm with us here that that is indeed what the story is going to be?"

• Jamil Ghani [03:43]: "This was never approved and it's not going to happen."

Ghani emphasized that the misreporting pertained solely to Amazon Haul, the company's ultra-low-cost store, and not the main Amazon website. He assured listeners that "we are never going to see tariff charges anywhere on Amazon" ([04:01]).

3. Impact of Tariffs on Amazon Marketplace and Prime

Navigating the Trade War

Ghani discussed Amazon's foundational objective of delivering exceptional customer experiences amidst the dynamic trade environment.

• Jamil Ghani [04:52]: "Our objective always has been... serving customers with the largest selection at the most compelling prices, delivered as fast as possible and as conveniently as possible."

He highlighted Amazon's diversified supply chain, developed over years, to mitigate the impact of tariffs and ensure minimal disruption to customers.

4. Supply Chain Diversification

Global Supplier Network

Addressing claims about Amazon's reliance on Chinese vendors, Ghani acknowledged the global nature of Amazon's seller base but refrained from confirming specific statistics.

• Alex Kantrowitz [07:01]: "A decade ago, 20% of third-party Amazon sellers were based in China. Today, it's 65%."

• Jamil Ghani [07:38]: "We work with sellers and vendors all around the world... ensuring superlative customer experience."

Ghani reiterated that Amazon's supply chain diversification is a strategic, long-term initiative aimed at resilience and customer satisfaction.

5. Amazon Flywheel and Prime Day

Ensuring Prime Day Success Amidst Tariffs

Alex raised concerns about whether tariffs might influence seller participation during Prime Day.

• Alex Kantrowitz [11:24]: "Any concern about the robustness of Prime Day because of a trend like this from sellers?"

• Jamil Ghani [11:24]: "The signals so far are strong... it's going to be a fantastic Prime Day."

Ghani expressed confidence in Amazon's preparations, emphasizing strong collaboration with sellers and positive indicators leading up to the event.

6. Sentiment Among Sellers and Consumers

Navigating Economic Uncertainty

Ghani acknowledged the challenging environment but remained optimistic based on current signals.

• Jamil Ghani [12:19]: "The sellers and vendors we work with are aligned with us on making sure that we have a great customer experience in the store."

Regarding consumer behavior, he noted:

• Jamil Ghani [14:39]: "Amazon continues to see strength in everyday essentials and groceries... Prime membership continues to grow all around the world."

Despite macroeconomic factors, Amazon's focus on competitive pricing and fast delivery sustains consumer engagement.

7. Alexa Plus: Rollout and Features

Enhancing the Alexa Experience

The conversation shifted to the much-anticipated Alexa Plus service.

• Jamil Ghani [17:30]: "We are rolling it out deliberately... ensuring a superlative experience without disrupting existing customer interactions."

Ghani described Alexa Plus as a significant upgrade featuring more conversational intelligence, enhanced world and Amazon-specific knowledge, and action-oriented capabilities such as managing calendars, shopping, and interfacing with real-world services like booking an Uber.

Personal Anecdotes Highlighting Alexa Plus

Ghani shared personal stories to illustrate Alexa Plus's functionality:

• Jamil Ghani [20:53]: "Our household uses Alexa Plus for everything from ordering costumes for our baby to managing snack supplies effortlessly."

These examples demonstrated Alexa Plus's ability to seamlessly integrate into daily life, providing both fun and practical assistance.

8. Competition with ChatGPT and Other AI Assistants

Differentiating Alexa in the AI Landscape

Alex brought up the evolving role of AI assistants, referencing ChatGPT's integration with shopping and companionship roles.

• Jamil Ghani [24:50]: "Alexa has a personality and takes that to the next level... very helpful and integrated into our life."

Ghani emphasized that while Alexa possesses personality traits, the core differentiator lies in its "indispensable assistive capabilities" that go beyond mere companionship to actively managing tasks and services.

9. Amazon’s Infrastructure and Robotics

Optimizing Supply Chain through Advanced Technologies

The discussion transitioned to Amazon's infrastructure investments, particularly in robotics.

• Jamil Ghani [43:24]: "We've continued to invest in robotics to make our supply chain more performant."

Ghani acknowledged the rapid advancements in robotics, mentioning Amazon's commitment to integrating the latest technologies to enhance fulfillment centers while ensuring a safe working environment for associates.

10. Partnership with Anthropic

Collaborating on AI Innovations

When questioned about Amazon's partnership with Anthropic, Ghani remained reserved regarding specific collaborations but affirmed the strength of the partnership.

• Jamil Ghani [50:34]: "We work very closely with Anthropic on a variety of different parts of our business."

He hinted at ongoing collaborations beyond Alexa but withheld details on consumer-facing applications like Claude.

11. Pricing and Future of Alexa Plus

Strategic Pricing for Enhanced Value

Ghani explained the pricing strategy for Alexa Plus:

• Jamil Ghani [51:16]: "Alexa Plus will be available for $19.99 per month for non-Prime members."

He underscored that Alexa Plus is positioned as an extension of Prime, aimed at providing additional value to Amazon's most engaged customers.

12. Conclusion

The episode concluded with Ghani expressing optimism about Alexa Plus's rollout and reaffirming Amazon's commitment to enhancing Prime membership. He encouraged listeners to explore Alexa's capabilities on Amazon's website and hinted at continuous innovation to deliver value to customers.

• Jamil Ghani [53:40]: "We want to make Prime itself better in addition to being our latest benefit."

Alex thanked Ghani for his time and insights, highlighting the informative nature of the discussion.

Notable Quotes

• Jamil Ghani [04:52]: "Our objective always has been... serving customers with the largest selection at the most compelling prices, delivered as fast as possible and as conveniently as possible."

• Jamil Ghani [09:34]: "We have a resilient business because we give customers so much choice."

• Jamil Ghani [17:30]: "We are rolling it out deliberately... ensuring a superlative experience without disrupting existing customer interactions."

• Jamil Ghani [24:50]: "Alexa has a personality and takes that to the next level... very helpful and integrated into our life."

• Jamil Ghani [43:24]: "We've continued to invest in robotics to make our supply chain more performant."

Final Thoughts

This episode provides a comprehensive look into Amazon's strategic maneuvers amidst global economic challenges, the enhanced capabilities of Alexa Plus, and the company's relentless pursuit of innovation through partnerships and infrastructure investments. Jamil Ghani's insights underscore Amazon's commitment to customer-centric growth and technological advancement.