Amazon admitted it was accidentally hiding better delivery terms from competitors amid high demand
The Amazon marketing algorithm concealed from the search engine the goods that the vendors offered at lower prices and shorter delivery times than Amazon and vendors that store the goods in the retailer's warehouses. Recode writes about it.
Amid coronavirus outbreak Covid-2019, number of orders on Amazon has increased significantly. On March 17, 2020, Amazon warned that until April 5 essential goods will receive an advantage in delivery over others, the publication notes.
Buyers who chose goods outside this category had the opportunity to get them earlier or at a lower price than offered by Amazon or its partners which rent Amazon warehouses. However, the marketplace algorithm hid such offers, according to Recode.
In Amazon's ecosystem, a seller who offers a better deal than its competitors gets a priority listing (his offer falls into the Buy Box field with basic information about the product), the publication explains. Usually, Amazon's partners can indeed deliver goods faster than other vendors. But not in times of crisis, Recode stresses.
Amazon acknowledged the mistake, noting that the priority was inadvertently set as a result of the company making changes to the operation of the marketplace so that customers can buy basic necessities "as quickly as possible. Some of the changes led to errors and in some cases the principle of issuing offers on demand changed. Amazon promised to make corrections as quickly as possible.