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Online Shopping Giant Amazon makes Customers pay more for Popular items

At least 94 percent of sellers who won the buy box placement without having the cheapest listing were either sold by Amazon itself or companies paying Amazon

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Amazon, Wikimedia
Amazon insists that its algorithm chooses products to go into the buy box based on a range of factors, including customer service and free delivery
When customers search for and click on a product, the Amazon algorithm chooses one vendor’s offer to put in the buy box
Having the product in this buy box offers a major advantage for the retailer, as most customers end up adding it to the cart and buying it
Sept 21, 2016: The online shopping portal Amazon’s algorithms make customers pay more for popular products giving prominence to items that benefit the retail giant, a study by ProPublica said.
ProPublica on Tuesday said it reviewed 250 frequently purchased products over several weeks to see what all were chosen to appear in the highly-priced ‘buy box’ that pops up first as a suggested purchase.
Amazon that bills itself as the “Earth’s most customer-centric company”, not only sells products directly itself, but also allows other retailers to sell their own products through its platform.

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This means that the same product could be offered by dozens of vendors at different prices and with different shipping costs.

When customers search for and click on a product, the Amazon algorithm chooses one vendor’s offer to put in the buy box.
Having the product in this buy box offers a major advantage for the retailer, as most customers end up adding it to the cart and buying it.
ProPublica found that almost three-quarters of the time Amazon would place its own products or those from companies that pay Amazon to fulfil orders into the buy box, even though they might not always be the cheapest.

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If a customer bought everything recommended by Amazon’s buy box they would end up paying 20 percent more than if the same products was bought at the lowest price on the platform, the study said.

Amazon, however, offers a tool to allow customers to compare product prices by producing a list that ranks sellers of the same item by “price and shipping”.
ProPublica. Wikimedia
ProPublica. Wikimedia
Although even there, the company gives itself an advantage by omitting the shipping costs for its own products.
This would mean the rankings were accurate for Amazon Prime members, who get unlimited ‘free’ shipping for $99 per year, but for anyone else the ranking is misleading.
Amazon insists that its algorithm chooses products to go into the buy box based on a range of factors, including customer service and free delivery.
Amazon founder and Chief Executive Officer (CEO) Jeff Bezos had said in 2007 that it uses “very objective customer-centred algorithms” to automatically award the buy box to the lowest priced seller, which is clearly no longer the case.
At least 94 percent of sellers who won the buy box placement without having the cheapest listing were either sold by Amazon itself or companies paying Amazon.
The companies that do not pay Amazon hefty fees (between 10-20 percent of sales) to fulfil orders, find themselves sidelined.
ProPublica concluded that it shows how hidden algorithms govern online interaction from Google search results to Facebook news feeds. (IANS)

  • Manthra koliyer

    This is just one of the tricks that the online websites use!

  • ucscalum

    You mean Amazon wants to be profitable? How shocking!

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How DealDash Became a Game Changer for Online Shopping

These are some of the best reasons why you are going to need to use DealDash as the benchmark

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online shopping
There are a lot of things to keep in mind when running an online auction site, and one of the best aspects of this is the bid process. VOA

When you are looking at the world of online auctions, there are probably a couple of names that stand out to you, with eBay being the main one. Now, if you are a business owner looking to launch an online auction site there is a lot to know, and you have to look at the best ways of being able to achieve success by doing this.

There are a lot of things that play a role in helping with this, and you need to be aware of the fact that you’ve got to learn from the best in the business. This is why you need to make sure you are focused on trying to get the best possible outcome. DealDash is one of the companies that has moved the goalposts when it comes to online auctions, and we’re going to look at why.

Customer-oriented

Where so many of these businesses fall down is that they forget about the importance of customer service. There are so many factors that play a role in helping your business evolve, but putting the customer first has always been the right way of doing things. There are a lot of elements that you are going to need to improve, and looking at the way in which DealDash puts its customers first at all times is so important. This is something you are going to need to think about, and try as much as you can to make this more of a focus for your business.

Shopping Tips
It is important that customers feel engaged with the bidding process, and this is something you need to keep in mind. Pixabay.

Exciting Bid Process

There are a lot of things to keep in mind when running an online auction site, and one of the best aspects of this is the bid process. DealDash offers an exciting and enjoyable bidding process where customers can really feel as though they are involved. This is really great and makes the entire site much more engaging. As a Growing business, you need to look at some of the best ways of improving the bidding process. It is important that customers feel engaged with the bidding process, and this is something you need to keep in mind.

Also Read: Hackers Linked to Iranian Government Targeting US Presidential Campaign, Claims Microsoft

Online Blog

The DealDash blog is one of the newest additions to the DealDash site, and a welcome one at that. There are so many different factors that you are going to need to keep in mind, and this is a great way of being able to improve the business. There are plenty of DealDash stories to be found on the online blog, as well as tips about bidding, and information about the site as a whole. This illustrates the importance of having an online blog, and how it can benefit your business.

As you can see, there are a lot of things that you need to keep in mind moving forward. These are some of the best reasons why you are going to need to use DealDash as the benchmark. There are a lot of factors that you need to assess when it comes to launching your online auction site, and you can see from the site reviews that this is a company that is going places.