Amazon searches are littered with sponsored results
The company has already made nearly $15 billion in 2021 from advertising alone.
From our perspective, Amazon may look like a competitive marketplace where anyone can offer to sell any product with the same chance at success.
As it turns out, that’s becoming less and less the case. The company has begun littering search results with sponsored products, meaning the big guys are able to buy their way to the top.
While Amazon used to be a more competitive market for everyone, the company has begun to utilize its popularity by selling search result placements. Large companies are spending major money to ensure their products are seen first.
The ecommerce giant has recently ramped up its advertisement revenue, and it shows.
Where you used to see a maximum of one or two sponsored results on a search, you can now see up to five or six, according to a report from CNBC. And the increase definitely shows in Amazon’s revenue.
In 2017, Amazon’s entire advertising revenue counted up to around $4.5 billion. In the first half alone of 2021, the company has gained nearly $15 billion from advertising.
I think it’s safe to say that Amazon has leveraged its market dominance to sell high-dollar ads to massive companies.
What used to be a relatively ad-free marketplace has now turned into a one-stop shop for major brands’ sponsored products.
While it used to be relatively easy to compete on Amazon as long as you had a good product and good customer service, it seems like those days are finally over as Amazon bows to the almighty dollar.
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