Sep 18, 2019

Amazon Updated its Search Algorithm to Boost Its Own Products

Despite internal opposition, Amazon has changed its search algorithms to prioritize listings that translate into bigger profits for the company—including its own private label goods, according to a WSJ exclusive.

Citing sources from Amazon’s A9 search team and the company’s lawyers, the WSJ report claims Amazon tweaked the search algorithm from showing the most relevant products to “featured” ones.

The goal was to favor Amazon-made products as well as third-party products that rank high in "what the company calls 'contribution profit,' considered a better measure of a product's profitability because it factors in non-fixed expenses such as shipping and advertising, leaving the amount left over to cover Amazon's fixed costs," the WSJ said.