How big eCommerce brands like eBay and Amazon hurt their sellers

ALGORITHMS eBay is a San Jose, California based e-commerce corporation. It operates internationally, i.e., in more than 30 countries. Sales are done online through their website. Amazon, on the other hand, is a cloud computing company and an e-commerce from Seattle, Washington. It is the largest in the world in dealing with internet retailing closely following Alibaba groups as the second largest in online total sales.

eBay changed Best Match (the eBay sorting algorithm) which is responsible for determining the listings that rank at the top of a search and making sales in the website. The changes made were set to provide better services, display relevant, accurate titles, display the best photos that are attractive and market well the items on sale making their descriptions clear, offer low starting prices and lower the shipping fee and carry out their online marketing in the right format.

The changes were good for newcomers but not pleasing to the experienced sellers. One way that the changed policies and algorithm affects its sellers is the items on sale that have more auction hours or days are displayed on the first page while those with less hours or even minutes of auction are displayed at the bottom of the first page or in the other pages.

The latter sellers lose a lot of sales. Another example is the Best Match gives first priority to its best sellers, those sellers who make big sales. The small “infamous” sellers’ sales, in this case, will not be displayed in the first pages. They end up making little to no sales. The search results on eBay are corrupt. One searches for a certain item, let’s say, a Samsung Galaxy J5 and get results for Samsung galaxy Prime.

They do not display the results of the items being searched. By this, they tend to market the items displayed and a buyer may end up purchasing the displayed item, which is a big loss to the former item’s seller. There has been a sudden change in Amazon sales from the October of 2017. The sales have drastically gone down. Some of its big sellers became its small sellers. What is the reason behind this? Let us blame the change in policies and algorithms.

Top searches in Amazon were based on how vastly a product was purchased. During a search of a particular product, the highest on sales will appear at the top of the search. This does not happen anymore affecting the best sellers as their sales make a huge drop. They are not displayed to potential buyers. Best deals are not displayed to buyers. When a buyer searches for an affordable long lasting item, the results displayed are the expensive same quality items.

A loss to the former item’s seller. This are but a few examples of how the changes impacts have been felt. Businesses are risk taking. Much worse is building your business on someone else’s platform. One may incur huge profits or loses as is the case in these two biggest e-commerce brands.