Amazon's Ads raised prices to showcase better and higher ranking for search results of businesses, focusing more on its advertisement capabilities than other factors. The move by the e-commerce platform is affecting the entire market and specifically giving small businesses a more challenging time for their products on the platform.
Amazon's Advertisements: Raised Prices Affect Small Businesses
In this photograph taken on November 18, 2020 in Lille, a person poses with a smartphone showing an Amazon logo, in front of a computer screen displaying the home page of Amazon France sales website. - Elected officials and associations calling for a boycott, small shopkeepers denouncing unfair competition, trade unions protesting against harsh working conditions.
Amazon's advertisements are now the company's principal focus as it recently raised its prices that help people get their items or products higher in the search results list. NBC News report that some local small business owners who utilize Amazon's platform for advertisements were affected by these recent changes in the pricing.
Small businesses compete with massive entities for visibility and ranking higher in search results for people to buy their products. However, the new prices bring costs higher for them, and it will only lead to fewer profits or earnings from their utilization of Amazon's online platform, which highly affects their need to be visible on search results.
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Amazon's Focus on Ads: Does it Defeat the Purpose?
Amazon said that it supports over 500,000 small businesses on its platform, but the raising of prices does not necessarily resonate with what they say over what they do. Advertisements are thought to make a product known, but they recently became focused on more significant changes for their appearance on search results.
It may defeat the purpose of a product's ratings, reviews, reliability, and use if it appears low in search results if it cannot pay for ads.
Amazon and its New Management Now
Amazon's Ads have been a profitable business venture since it launched it on its platform, gaining them more revenue and earnings throughout its availability. Like other services found from other platforms or businesses, it focuses on "more is more," meaning that the more a company pays for its ads, the more it is likely to be seen on searches.
The company may look into what is selling on their platform and choose to remove them or limit their availability seen, but it is not all there is to it.
Businesses selling on Amazon may opt not to use the ads services of the company, but it will hold them back from being recognized or offered more to customers in search of products. Advertisements do not rely solely on seeing publications or media from the company themselves but on appearing on different results or features.
The company may determine those in the featured lists and those listed on the company's website, as they have complete control over these things. Amazon's move is to gain more money in the process, asking users more to advertise on its platform.
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Written by Isaiah Richard
