Market Overview

WSJ: Amazon Manipulated Search Algo To Focus On Profitability

WSJ: Amazon Manipulated Search Algo To Focus On Profitability, Inc. (NASDAQ: AMZN) has been manipulating its product search system to focus on listings which will profit the company, according to The Wall Street Journal

The information was attributed to people who worked closely on the project. The company is under scrutiny, as the U.S. and the European Union have been examining Amazon's dual role as a marketplace operator and seller of its own branded products.

The company's search rankings can be the deciding factor for a product, so any tweak to the search system has "broad implications," the Journal said in its Monday report. 

The e-commerce site has not changed the criteria it uses to rank search results to include profitability, spokeswoman Angie Newman said in an emailed comment to Benzinga. 

"When we test any new features, including search features, we look at a number of metrics, including long term profitability, to see how these new features impact the customer experience and our business as any rational store would, but we do not make decisions based on that one metric." 

Amazon shares were trading 0.37% higher at $1,814.44 at the time of publication. The stock has a 52-week high of $2,050.50 and a 52-week low of $1,307.00.

Related Links:

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Photo courtesy of Amazon. 

Posted-In: e-commerce The Wall Street JournalNews Media Best of Benzinga


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