Amazon’s Terms of Service Change

Statistical Results of Amazon’s Terms of Service Change

There are some data from Review Kick about how Amazon’s Terms of Service Change effected on sellers. There were around 6000 products that tracked. In statistical analysis was included those categories that had more than 10 products. So what was the outcome of the analysis? Almost 25% of the tracked products lost reviews… It means around 1500 products out of 6000 lost reviews.

Which categories were impacted by the TOS? Considering the fact how many products lost reviews, results show that Kitchen/Dining and Electronics were the top categories that got the most influence from TOS. This was very interesting result.

So what was the reason? First of all, it is good to understand whether the number of reviews correlated to the percentage of reviews and see whether sellers that lost so many reviews after the TOS also lose percentage of their reviews. Another analysis shows that products which lost more reviews lost also a higher percentage of their reviews. Moreover, if product lost more than 200 reviews it also loses 2/3 of their reviews on average.

It is also interesting to figure out whether there were any types of products, categories or sellers that lost number of reviews. In order to find an answer, number of reviews was compared before TOS change and against percentage of reviews lost. The product that had a lot of reviews before TOS change loses a bit higher percentage of their reviews. The difference was not really large. Therefore, no particular categories have been targeted.

According to results there was evidence that the products with more reviews after TOS had higher volume ad percentage of removing. It seems that Amazon targeted all those products that had more reviews and Amazon removes any advantage of using reviews services. After TOS sellers “can’t play” in the system anymore to boost their reviews, organic rank and sales eventually. It is honest to say that prohibiting incentive reviews was a great move by Amazon.

 

The most important benefits of TOS change

1. At some point it was clear that some sellers were overusing the reviews system and getting a lot of reviews within very short time to boost their sales. And all products that had many reviews were going to the top of the organic rankings for search keywords and it was making a problem for new products to enter the marketplace. Eventually this causes some damages to Amazon, because new sellers were giving up easily.

2. After TOS change finally there is more chance again for new sellers to enter the product marketplace. This will motivate new sellers to use Amazon in order to build a good business. After TOS change sellers can’t anymore launch a product and collect many reviews within short time in order to go to the top of the organic rankings. After these changes success of sellers will depend now on some digital marketing fundamentals: product research, search engine optimization, pay per click expertise, conversion rate optimization, email marketing. Everything now is legal and honest.

3. Eventually the customer trust is restored again. TOS facilitate to the process of generating honest and significant reviews. The main goal of TOS change was to restore customer trust to Amazon and in its product reviews system, because the social proof and reviews are very crucial in any kind of marketplace. So this change will increase the number of new sellers and also there will be more buyers because they will trust to reviews. This change would be especially very helpful for private label sellers because they need a brand reputation to have more customers.

We hope this review gave you a comprehensive overview about Amazon’s Terms of Service Change and convince you about positive changes made by Amazon. Feel free to leave your comments below! 🙂

 

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