Amazon has tried a new feature on its mobile app where it forces the users to either click through or select a pop-up ad for a cheaper product. A classic example of this feature is that if one searched for a hand mixer and got a sponsored link for Morphy Richards, they will click on the listing and then a pop-up would appear reading “similar item, lower price.” The highlight of the app feature is that the user will have to either click on the item, which comes from the Amazon Basics brand or closes the ad.
It was an experimental move and ended last week, but it significantly showed the power of Amazon and also the upwards of 100 in house brands Amazon has created that have a wide array of products right from garbage bags to sleeping mattresses.
Amazon has taken the market share of other companies in some range of products with its private label products, and many other companies are willing to collaborate with Amazon as it would be beneficial for increasing their sales figures. The experiment was available on a few devices, and Amazon also confirmed that it has collaborated with alternative brands that have lower priced products. Amazon has not discussed the result of the experiment though.
It has named these pop-up windows ads as a way for the shoppers to find cheaper products. The retail team designed the pop-ups. Amazon tries to be dynamic and keeps on experimenting with presenting new shopping experiences for its customers. In this experiment similar but lower priced options were introduced to the customers when they clicked on any listing.
However, the experiment has not gone down well with the competitors, and a company called Nested Naturals calls it a ‘sneaky’ tactics and they are gearing up for the counteraction.