The Amazon tax

I see the exact same thing on Play Store, and I think Google is outright complicit in fraud. The top result when you search for an app, even if by exact name, is always, literally 100% of the time, not the app you are looking for, but some other ad-infested knockoff spyware shit whose developer paid Google to be placed before the real thing.

> The highest-yielding ad my publisher has tested so far is the search “Seth Godin The Knot“

I think it would be interesting to see legal action here. I’m not a lawyer, but I feel like there should be at least three ways to go after this:

1. Trademark infringement. If Amazon is using someone’s search that is clearly searching for a specific product, possibly trademarked, it seems inappropriate for them to serve up an ad for a competitor at higher priority than the actual result.

2. Fraud. If I search for a product that Amazon sells and Amazon shows me an ad for a different product first and hides the product I searched for below the fold, they are effectively telling me that they don’t have the product I searched for and possibly that it doesn’t exist. It seems to me that this is deceiving me for commercial gain.

3. Fraud again. If I search for a specific book and Amazon shows me an ad for that book, I think they’re trying to trick me into clicking that ad so they get extra revenue even if I don’t intend to click an ad. (And they’ve defrauded the ad buyer too. Those clicks are bogus. Seth Godin should not be charged for a click when the clicker was searching for the book by a good approximation of its name!)

Someone should file the multi-hundred-billion-dollar class actions :)

When searching on Amazon I always change sort to Best Sellers. The default is Featured Items which shows ads at the top and throughout results. For some searches that have a small number of real results, the majority of the list will be ads. Sorting by Best Sellers eliminates all ads in the results.

This is a lot of words to describe rent seeking. Google, Amazon, Instagram/Meta, ultimately all of these are earning their outsized margins through market-dominance enabled intermediation of commerce. I search for 'foo' and the top result is either Foo paying through the nose for what should really should be organic traffic or Bar 'buying' the click instead. In the absence of anti-trust the only winning move is to buy stock in the monopolists, their ability to extract these rents from an ever-growing proportion of the economy is only getting stronger.

It doesn't have to do with Amazon. It is just how ads work.

Of course when you buy a product that is heavily advertised you know that you are paying for it, Amazon or not. That's why, when I see an ad campaign for a product I may want, it is a signal for me to look elsewhere. Some competitor may use what would be ad budget towards offering lower prices or better quality.

As for Amazon, it is not cheap! It is convenient, fast delivery, easy returns and all that. But if you forego that convenience, there is usually a cheaper option: local shops, Chinese platforms, direct sales, etc...

Amazon is a net-negative overall but I don't think this understanding is correct:

> The only purpose of the ads is to get you to pick an air fryer that isn’t that one (or for the best air fryer, to keep you on track to buy the one you wanted in the first place). The ads make the search worse.

This is only true in extremely simply scenarios. In reality, most of the time individual consumers may prefer something other than "the highest ranked item in this category." Maybe another company has a feature that increases cost but adds utility, maybe there's a brand you trust more that makes a slightly less popular version, etc.

The problems of parasitic advertising still exist. People still see ads for products they will like less than the top rated search, but it's wrong to imagine that Amazon actually knows what that person would like best. If matching people to products was that easy you'd have all kinds of 3rd party recommendation services making very specific recommendations to make money off affiliate links. Instead we have a million "top 10" sites that work about as well as picking the #1 seller in an amazon category: not that well.

>If you’re searching for an air fryer, Amazon already knows quite a bit. They know the best-reviewed, least-returned, best-priced model. The only purpose of the ads is to get you to pick an air fryer that isn’t that one (or for the best air fryer, to keep you on track to buy the one you wanted in the first place).

What if I made a new air fryer that hasn't received a lot of reviews and costs a little more because of its quality? How would I break through, if not ads?

This has been true for years on Amazon and is true for most big services now.

Over time the concept of search has mutated from 'locate the exact item I'm looking for' to 'show me a list of semantic search results'. Somehow nobody noticed.

Oh and of course those are not random results - you can literally feel how the platform is trying to nudge you into buying what IT wants, not what you wanted. The search is just purchase intent, the platform will choose what you'll buy.

Powerful algorithms, subliminal design - I feel like a lamb in a dark forest full of wolves when I search on amazon, netflix, prime video ..

There are no '0 search results' anywhere.. each search yields thousands of results.

I remember what a revelation Google search was when it came out in 1999 - it would actually find the exact thing you were looking for ! You no longer had to sift through directories of links, you could just filter it..

We're back to pre-google, but it's a lot worse now, since this is by design, not by lack of technical knowledge of how to make search work.

The new (to me) Amazon Haul storefront is (to me) hilarious. I was stunned when I first saw it: https://www.amazon.com/haul/store

I didn't dig very deep to compare prices, but it appears to compete with Aliexpress/Taobao/Temu, with a larger marketplace fee (presumably justified by the "Amazon" brand recognition and customer capture?). Even after the absolute mess that Amazon made with their "Ships via Amazon" and "Ships from third party" schemes, this feels like a new low.

Paired with the article, it seems to me like the natural conclusion is that the company wants to move away from distribution and towards pure rent-seeking, in the most blatant ways possible, trying to squeeze as much cash as possible from their name while it has any value.

> Amazon makes enough in search ad revenue to give every single one of their employees a $35,000 cash bonus and still have change left over.

There was study not too long ago that showed that 48% of Amazon's employees were paid so little that they were forced to depend on some form of public assistance to meet their basic needs. Not only would an extra 35k a year prevent amazon employees from needing foodstamps and housing assistance, but I'd be willing to bet that amazon would make back some of it in increased amazon purchases too. It'd be great if the government cracked down on corporations who use taxpayer money to subsidize their labor expenses

I don't love (but use...) Amazon but I think if done properly, ads can be relevant even when searching for a specific thing.

Let's use a Google Example: I search for Toyota RAV4 and get an ad for Mazda cx-50. Obviously Toyota hates that but as a consumer it has a chance of making me aware of something I didn't know but would want to know, especially as a part of a purchase decision. That's why Mazda pays for that ad slot, and also why Toyota makes it expensive for them :)

Obviously google in this scenario comes out ahead and it is annoying for some users but can be highly valuable if done well.

It's not how I search or shop but plenty of people do.

It's amazing how poor on-site search has gotten, while at the same time the capability to have better results and more relevancy has gone way up.

I normally use Google and/or DuckDuckGo to search YouTube and Amazon, because if I'm looking for a specific video/product, that one will be 3-4 pages in (maybe not even shown).

Brand name products are buried 3+ pages deep on Amazon, while the first 2-3 pages are always drop-shipped Chinese knockoffs now. The onsite search is almost entirely useless.

Imagine there's a best-selling toaster. Amazon can recommend it and many people will be happy buying it. Then, one day a new toaster comes out, and it might be even better than the old best-seller. How would it get sufficient traction to be recommended by the algorithm? To send a strong enough signal, it would probably need a level of sales that could only be achieved with some level of advertising.

Separately, I'd note that Amazon doesn't want high levels of returns (which it has to pay for in many cases), so they still try to herd people toward products that they will find acceptable. Might they not love them as much as some others? Perhaps, though this is a fine line to try to walk, and I'm not sure that Amazon is actually trying to walk it.

I'm in the UK, and I've found that pretty much anything I can get on Amazon I can also get at John Lewis. It's probably more expensive - I'm in the lucky situation that I'm not particularly price-sensitive - but I much prefer the feeling of buying from JL. Very occasionally I'll buy something from Amazon like photo paper or some small gizmo that's difficult to find elsewhere. The one kind of physical shop I really miss is the kind of place where you can buy one screw, nail or picture hook etc. I hate the number of 10-packs of things I get where I only need one. (Luckily I live in a block of flats where there's a good community, so often I get those for free just by asking on our Signal group!)

> The only purpose of the ads is to get you to pick an air fryer that isn’t that one (or for the best air fryer, to keep you on track to buy the one you wanted in the first place). The ads make the search worse.

"The best" is not a static product. If Amazon had no way for vendors to showcase their product, the best would be a stale product that accumulated decades of reviews. Maybe it's still the best , maybe not. But there is value to show some noise in the search long term.

Another way to look at it is through the vail of ignorance. Suppose you're a manufacturer of air fryers, but don't know where you stand in terms of how competitive or popular your product is. Would you want to live in a world in which you CAN'T bump your placement? Sure if you're the top 3 manufacturer, maybe you would prefer not to pay the tax. But if you're not, you'd much rather prefer the system in which you can.