If a company gave someone a product to keep in exchange for an honest review on Amazon (AMZN) , do you think the review would slightly biased?
Well, apparently that has been found to be the case and as a result, the e-commerce juggernaut is cracking down.
These "incentivized" reviews skewed product ratings, and were ultimately disappointing and in some regard misleading customers. Data shows that an incentivized review averaged a 4.74 out of 5 rating, while a non-incentivized rating received just a 4.36 average review.
Amazon wants an online shopping experience that's quick, easy, price competitive and perhaps most importantly, honest and trustworthy. If users log in to purchase a new product and see that its rated a 4.74 out of 5, many will assume that it's of high quality and worthy of a purchase.
But if a majority of those reviews came from a customer who received that product for free, it's likely that they have a more positive bias. Given that Amazon has boomed into a colossal player in the retail sector, its customers' trust is ever so important.
Losing that could lead to lost sales. And in a world where seemingly every retailer is trying to combat Amazon, that's not something the company wants to see happen.
Shares of Amazon closed at $780.12 Wednesday, down 0.7%.
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