| The Amazon tax(seths.blog) | |
| 1351 points by herbertl 3 days ago | 682 comments | |
tl;dr: Amazon earns roughly $1 billion per week from search ads that Seth Godin argues degrade search quality, since the platform already knows the best product for a query and ads mainly serve to divert buyers or force sellers to pay to defend sales they'd have made anyway. He contends these zero-sum ads don't grow demand but raise consumer prices, incentivize shoddier products (as click budgets outweigh brand quality), and give Amazon a perverse incentive to worsen organic results. His conclusion: Amazon's ad model amounts to legalized theft from the customers it claims to serve. | |
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