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    <p>(Disclamer: I used to work at Amazon, though I didn't work on the recommendations team.)</p> <p>ewernli's answer should be the correct one -- the paper links to Amazon's original recommendation system, and from what I can tell (both from personal experience as an Amazon shopper and having worked on similar systems at other companies), very little has changed: at its core, Amazon's recommendation feature is still very heavily based on item-to-item collaborative filtering.</p> <p>Just look at what form the recommendations take: on my front page, they're all either of the form "You viewed X...Customers who also viewed this also viewed...", or else a melange of items similar to things I've bought or viewed before. If I specifically go to my "Recommended for You" page, every item describes why it's recommended for me: "Recommended because you purchased...", "Recommended because you added X to your wishlist...", etc. This is a classic sign of item-to-item collaborative filtering.</p> <p>So how does item-to-item collaborative filtering work? Basically, for each item, you build a "neighborhood" of related items (e.g., by looking at what items people have viewed together or what items people have bought together -- to determine similarity, you can use metrics like the <a href="http://en.wikipedia.org/wiki/Jaccard_index">Jaccard index</a>; correlation is another possibility, though I suspect Amazon doesn't use ratings data very heavily). Then, whenever I view an item X or make a purchase Y, Amazon suggests me things in the same neighborhood as X or Y.</p> <p>Some other approaches that Amazon could potentially use, but likely doesn't, are described here: <a href="http://blog.echen.me/2011/02/15/an-overview-of-item-to-item-collaborative-filtering-with-amazons-recommendation-system/">http://blog.echen.me/2011/02/15/an-overview-of-item-to-item-collaborative-filtering-with-amazons-recommendation-system/</a></p> <p>A lot of what Dave describes is almost certainly not done at Amazon. (Ratings by those in my social network? Nope, Amazon doesn't have any of my social data. This would be a massive privacy issue in any case, so it'd be tricky for Amazon to do even if they had that data: people don't want their friends to know what books or movies they're buying. Demographic information? Nope, nothing in the recommendations suggests they're looking at this. [Unlike Netflix, who does surface what other people in my area are watching.])</p>
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    1. POHow does the Amazon Recommendation feature work?
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    1. COAmazon for years exposed purchase circles - which were anonymized buying trends based on company domain name and zip code. There had to be at least 50 distinct buyers in a purchase circle before you could get information about it - so amazon certainly did keep, track and use that information to help themselves (and others) understand what was popular. You could look at cds, electronics, and book purchases in your area or at your company. They were exposed from 1999-2002. http://forum.dvdtalk.com/archive/t-122436.html even has a copy and paste of the text from amazon describing them.
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