🛒 Amazon's Latest Test
Amazon is experimenting with displaying seller ratings directly in product search results. The test was spotted on Amazon’s mobile app, providing buyers with seller ratings upfront. An Amazon spokesperson noted, “experimenting with showing seller ratings on some product categories to help our customers make more informed purchase decisions.” Previously, users had to navigate to a seller’s profile to view their rating.
📈 Why Seller Ratings Matter
Ratings and reviews are crucial in online shopping. A study by Northwestern University’s Spiegel Research Center found that 95% of shoppers read reviews before making purchases. Amazon's new feature could shift how products and sellers compete, making seller reputation more visible. Vanessa Hung, CEO of a seller management agency, reacted on LinkedIn, “So now the customers will know how good a seller we are??”
🔎 Transparency vs. Trust Issues
Amazon's rating system uses machine learning, considering factors like recency and verified purchases. It is unclear if the same system will apply to seller ratings. Amazon has battled fake reviews on products for years, but the extent of fraudulent reviews on seller profiles is unknown. The feature could help combat trust issues, but also raise questions about transparency and fairness for sellers.
📊 Impact on Third-Party Sellers
Third-party sellers are vital to Amazon, making up over 60% of units sold. Revenue from third-party seller services rose 12% to $36.2B in Q2, nearly 25% of Amazon’s total revenue. By increasing the visibility of seller ratings, Amazon aims to enhance the shopping experience. The tech giant has also been rolling out new AI tools for sellers, aiming to strengthen its marketplace ecosystem.
Will showing seller ratings change your shopping habits?
