Amazon has a serious review problem. They’re investigating the allegations of employee bribery, and they’re trying to crack down on reviews. Be that as it may, Amazon isn’t hurt in the slightest by fake reviews.
But everyone else is.
The industry takes a hit
Sellers on Amazon are playing a game, but there seems to be two ways to play. Those who follow the rules are being beat by those who don’t. Amazon itself recognizes that stopping the fake review system is difficult — even for their complex AI system — but for a legitimate seller who relies on comments and reviews to help bolster their business (and improve their ranking), it’s nearly impossible to compete.
Brands and retailers feel the negative impact, too. Amazon championed product reviews for a reason: they help consumers make purchasing decisions, which leads to more sales. And every brand and retailer followed suit. Amazon stands as a proxy for all ecommerce, and when there’s negative association with their product reviews, consumers assume there’s a problem with all ecommerce reviews. In the end, as long as Amazon fails to fix the cracks in the system, brands and retailers will struggle to maintain their own integrity.
Consumers feel the pain most
As frustrating as this scenario is for the industry, consumers are the real losers here. They seek out advice for what to buy every single day. They ask friends, family, and co-workers. They take their questions to the store for insight from knowledgeable sales associates. And they scour the internet for reviews. But if they don’t trust online reviews, then they don’t trust the brands and retailers either. And can you blame them?
It’s one thing to be burned by a Yelp review — you’re out the cost of the meal and the unappetizing calories. It’s another thing to spend time researching a considered purchase, only to discover — too late — that the reviews weren’t just misguided, they were terribly inaccurate. This happens every single day.
What’s the real harm here? After all, returns are typically pretty simple.
Returning a product because a consumer changed their mind doesn’t hurt brand equity, but returning a product for not matching its online reputation does. And each time it happens, consumers build an armour of distrust. In the brand they initially purchased from, in the online marketplace, and in retail as an industry.
Meanwhile, Amazon continues to sell hundreds of products per second.
We need personalized recommendations
Brands and consumers alike rely on reviews; both what you see online and the reviews provided in person. Consumers need them to buy confidently, and brands need them to help consumers see the value in their products. In fact, the reviews that matter most are the ones that go beyond the star rating and provide the context behind the product: who it’s right for, why they’d like it, and what potential drawbacks exist. Amazon’s review system set out to give consumers this insight, in effect giving consumers a confident, better shopping experience to keep coming back to. Amazon revolutionized the shopping experience on so many levels, reviews included.
But it’s broken.
Just like many broken systems that continue to function and hobble along, online reviews will still be critical for many brands and independent sellers to succeed, regardless of the problems. And consumers will continue to purchase. But they won’t be confident, and brand loyalty will be tough to earn, and consumer trust will continue to dwindle.
Whether we’re consumers, marketers, brands, or retailers, one thing is clear: we need recommendations we can trust.
