Amazon Says It Puts Customers First - But Its Pricing Algorithm Doesn't (propublica.org)

ProPublica has a report today in which it warns Amazon shoppers about the results that they see on the shopping portal. It notes that people often hope that the results that come up first after a search are the best deals, and that's what Amazon will have you believe, but its algorithm doesn't work that way. In what may surprise many, in more than 80 percent of cases, Amazon ranks its own products, or those of its affiliate partners higher. From the report: Amazon does give customers a chance to comparison shop, with a listing that ranks all vendors of the same item by "price + shipping." It appears to be the epitome of Amazon's customer-centric approach. But there, too, the company gives itself an oft-decisive advantage. Its rankings omit shipping costs only for its own products and those sold by companies that pay Amazon for its services. Erik Fairleigh, a spokesman for Amazon, said the algorithm that selects which product goes into the "buy box" accounts for a range of factors beyond price. "Customers trust Amazon to have great prices, but that's not all -- vast selection, world-class customer service and fast, free delivery are critically important," he said in an e-mailed statement. "These components, and more, determine our product listings."

Comments

Price isn't everything

[Anonymous Coward]

When I buy an item, I will pay more to get it directly from Amazon or from a seller that ships through Prime. That way I don't get screwed if there is something wrong.

"...and that's what Amazon will have you believe..

[willoughby]

Says who? Where does Amazon make the promise, or even implication, that it's search results will show the best bargains at the top?

Re:Nor shipping

[Sowelu]

Almost like they were spending extra to test out their capabilities before committing to Prime-level SLAs for more people. It's load testing. Hell, it's what I'd do.

Duh! that's how Fedex and Postoffic works too

[goombah99]

you can pay for various speeds of shipping. As people use the priority ones more the slower ones get slower as there are less gaps to insert the slow ones into and they get even slower.

everyone knows this.