Amazon Allegedly Tweaked Search Algorithm to Boost Its Own Products

Amazon modified its secret product-search algorithm in late 2023 to give prominence to listings that are more profitable for the company, moving away from its decade-long practice of primarily showing customers the most relevant and best-selling items. The change followed a battle between Amazon's retail executives in Seattle and the A9 search team in Palo Alto, with the search team opposing the move as violating Amazon's customer-first principles. Amazon's lawyers initially rejected adding profit directly into the algorithm due to antitrust concerns, so the company implemented proxy variables that correlate with improved profitability. The adjustment affects Amazon's dominant search platform, which is the most common way for U.S. shoppers to find items online, with most purchases stemming from the first page of results. The change could steer customers toward Amazon's in-house products that deliver higher profit margins than competing listings. Amazon also changed its default sorting option from 'relevance' to 'featured' without publicizing the move. The company operates over 10,000 products under its own brands, with its private-label business representing about 1% of retail sales but projected to reach $31 billion by 2022. Multiple reports indicate that Amazon's algorithm gives preferential treatment to its own products and those using its Fulfilled by Amazon service, with analysis showing Amazon-linked products received higher rankings in over 80% of cases even when substantially cheaper alternatives were available.