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.
HN Discussion:
  • Same predatory ad behavior exists on Google Play Store and other platforms, reinforcing the critique
  • Legal action like trademark infringement or fraud claims should be pursued against Amazon's ad practices
  • This is just rent-seeking behavior enabled by monopoly power across all Big Tech platforms
  • ~Expecting corporations to serve customers is naive; they exist to serve shareholders
  • Ads serve legitimate purposes like helping new/quality products break through or exposing consumers to alternatives