From DigiDay:
Amazon has previously offered vendors the ability to “bid” for an Amazon’s Choice badge by lowering prices and spending more money on advertising, bringing into sharper focus how the program, which recently came under fire from senators, actually works.
It’s unclear whether or not this offer was taken up by any Amazon vendors, or how long the program was offered before it was discontinued. One source believed it was only offered for a few months.
Amazon’s Choice label, which is a mark that denotes that an item is recommended, gives certain products and items higher and more obvious placement in search results. While it’s unclear how exactly the mark is earned, it’s been accepted that it’s generally a mix of product listing and specifications, price and reviews, operated by Amazon’s algorithms.
But sources say that Amazon actually offered sellers the chance to bid on the mark back in 2017.
A pitch deck reviewed by Digiday details a 2017 bidding program for the Amazon’s Choice badge in a particular product category. The deck explained the Amazon’s Choice program, which launched in 2015, as valuable to brands in that it increases the visibility of a product listing in Amazon’s search results, which then drives an increase in units sold and revenue over time. An example for an Amazon’s Choice-recommended electronic showed a 10% increase in units sold over one quarter and an immediate increase in the number of people going to the product page over a few weeks.
While Amazon didn’t set up an outright pay-to-play system for its coveted Amazon’s Choice badge, which increases visibility and conversion rates for product listings that receive the tag, it did set up an internal process that could be seen as manipulating the Amazon’s Choice system.
In an email requesting confirmation and information on whether this program existed, an Amazon spokesperson denied that this program was offered.
. . . .
An agency source said that while this bidding program ran briefly in 2017, Amazon rolled it back and Amazon’s Choice badges are now driven by Amazon’s algorithms. According to Amazon’s vendor and seller resources, Amazon’s Choice is rewarded to product listings that have high in-stock and conversion rates, high customer ratings, competitive prices and Prime shipping. But nefarious recommendations from Amazon have come under scrutiny: In a report in June that reviewed dozens of Amazon’s Choice products, BuzzFeed found that Amazon frequently recommended inferior and defective products, as well as products whose reviews had been manipulated by the seller.
Link to the rest at DigiDay
PG was reminded the following song, titled “Don’t Be Stupid.” (Given the title, he has no idea why people are dancing in water).
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While I don’t like the above description of what’s going on with Amazon Choice, I have to say that the couple-dozen items that I have bought which are Amazon Choice have always been satisfactory — typically commodity items or one-offs.
It’s their brand to damage, and I agree that if they offer pay-to-play, they WILL damage it.
We have to remember here that Amazon is a storefront. A freakin’ HUGE storefront, but one all the same.
Bookstores didn’t do themselves in with pay-to-play for their entry shelves. Nor have grocery stores killed themselves off with cashier lane displays and end caps that are sold off to the highest bidder among their vendors.
Pay-to-play as such will not damage the Amazon brand – only making mistakes in who they allow to play can do that. (Which is a continuing problem for them.)
Search on Amazon and about a third of the results will be ads. This is by itself a petty annoyance, but a clear move away from Amazon’s policy of emphasizing customer service. Making the Amazon’s Choice is a more dangerous step down this road. It is specifically given the form of Amazon’s endorsement. Assign this to one of their half-assed algorithms and bad things are bound to happen. Sell it to the highest bidder and it is even worse. Some piece of utter crap will be designated Amazon’s Choice, teaching the buyers that Amazon is not to be relied upon.
I already am leery of buying non-books from Amazon, due to its inclusion of poorly vetted third-party sellers. The Amazon Choice program does not assuage my concerns.
I’m shocked, shocked I say.
I’ve recently been shopping for things I usually don’t buy (in other words, things that aren’t books) and so noticed this Amazon’s Choice badge more than I might have otherwise. Based on the products that have it and the customer reviews, I’m not certain they’ve replaced the bidding program with “Amazon’s algorithm,” unless that algorithm also includes what a vendor has done, i.e. bid, to get it.
Factoring in how long an item has been listed, how well it sells, and (undoubtedly) its profit margin is going to skew towards bigger vendors, whether they pay or not.
Caveat Emptor has always been true.
Does anybody outside RUTHLESS PEOPLE blindly accept salesfolk recommendations?
Felix, Seriously big kudos for the Ruthless People reference.
“That has got to be the stupidest man in the world.”
Around 1987, my best friend was going through a breakup with his wife Ruth. We walked by a theatre (this in Atlanta, near Majestic Cafe, a landmark). At the Plaza Theatre (another landmark), the movie Ruthless People was playing. He said, that’s about people like me…Couldn’t resist.