As a consumer, I like to have choices, and I’m sure you do too. But have you ever stood in a fast food line staring at all the options, not sure what to choose? Yeah, me too. It turns out that too many choices can lead to Choice Overload. The abundance of choices can lead to worrying about not getting the right product.
This is a problem that Amazon has recognized for its customers. If you search sheets, a relatively simple item, over 90,000 results will show up. Amazon gives its users the ability to search by rating, price, and category. They also have Amazon’s Choice label. Amazon’s Choice applies to products with high ratings, available to ship immediately, and well priced. This classification can get confusing when there are multiple products in a category that have the label.
How It Works?
While Amazon’s Choice sounds like someone in the company is picking products, that isn’t the case. The process that Amazon completes for selecting a product is not transparent. When Amazon Echo got introduced in 2015, Amazon created the label. Typically, if you tell Alexa to buy “new sheets,” Alexa would go through your history to determine a brand preference. However, if you have never purchased linens from Amazon, it would have nothing to reference. Amazon’s Choice became the default selection in this scenario.
Cracking The Code
Consultants, consumers, and third-party sellers have all tried to figure out how to get a product classified as Amazon’s Choice. The label is seemingly random when applied to products. The highest-rated or least expensive product doesn’t always carry the label. It’s assumed that Amazon will pick items stored in their warehouses because they can guarantee it will ship that day. Another theory links the label to specific keywords.
Amazon’s Choice Impact
According to OC&C Strategy Consultants, a product that has the label is 300% higher than its next competitor. However, after losing the label, the product’s sales went down 30%. Since the label plays a significant role in a product’s success or failure, two senators asked Amazon to explain the selection process.
Richard Blumenthal and Robert Menendez co-authored a letter to Amazon’s CEO, Jeff Bezos. It states, “Your customers reasonably rely on the ‘Amazon’s Choice’ badge to guide their final purchasing decisions. In some consumers’ minds, the ‘Amazon’s Choice’ badge is a material representation of Amazon’s recommendations. Yet, the badge may be misleading consumers into thinking the products that receive this distinction are the best available products.”
Amazon has yet to respond to this request but has responded to another letter about product safety. Amazon stated it is continuously updating the tools to determine product safety and legitimacy. The Senators noted that the response is not adequate and considering holding hearings into the matter.
We are not sure what the outcome will be, but shoppers should always check reviews and ratings before purchasing products. If you found this article interesting or helpful, check out our other posts!