Amazon Faces Backlash Over New Shopping Experiment

Amazon is under fire from independent retailers regarding a new feature in its app that enables customers to purchase products from external websites directly on Amazon.

The tool, called Buy for Me, was introduced alongside Shop Direct last year to help users find items not available on Amazon and facilitate AI-driven purchases on their behalf.

Recent reports from Bloomberg, Modern Retail, and Financial Times have revealed complaints from brands who claim they were unaware of their products appearing in Amazon search results through this program.

Key grievances from brands include lack of explicit consent to participate, inaccurate or misleading product listings, and Amazon’s intrusion into their customer relationships without permission.

• Some brands never agreed to be part of the program.
• Product listings on Amazon were often incorrect, confusing, or out of stock.
• Brands argue that Amazon is interfering with their customer base without consent.

An Amazon spokesperson clarified that participation in these initiatives is voluntary and that positive feedback has been received.

According to Amazon, Shop Direct and Buy for Me aim to introduce customers to new brands and products while assisting businesses in reaching new audiences and boosting sales.

Amazon ensures transparency by labeling listings from external stores and verifying stock availability and pricing accuracy from the brand’s website.

As of November, the number of products available through Buy for Me has surged from 65,000 to over 500,000.

The resistance from independent sellers, who contribute over 60% of Amazon’s online sales, highlights the tension arising as tech companies deploy AI-driven shopping tools.

In a similar vein, Amazon filed a lawsuit against Perplexity for utilizing AI to make purchases on its platform, citing legal concerns and potential risks to customer experience.

Related: AI Disruption in Online Retail