Self-Preferencing at Amazon: Evidence from Search Rankings

By: Chiara Farronato, Andrey Fradkin and Alexander MacKay

Format:Print
| Language:English
| Pages:8

Abstract

We study whether Amazon engages in self-preferencing on its marketplace by favoring its own brands (e.g., Amazon Basics) in search. To address this question, we collect new micro-level consumer search data using a custom browser extension installed by a panel of study participants. Using this methodology, we observe search positions, search behavior, and product characteristics. We find that Amazon branded products are indeed ranked higher than observably similar products in consumer search results. The prominence given to Amazon brands is 30% to 60% of the prominence granted to sponsored products.

Keywords

Consumer Behavior; E-commerce; Product Positioning; Brands and Branding; Consumer Products Industry

Citation

Farronato, Chiara, Andrey Fradkin, and Alexander MacKay. "Self-Preferencing at Amazon: Evidence from Search Rankings." NBER Working Paper Series, No. 30894, January 2023.