Some time 15 years ago, when Amazon started a feature that allows members to post reviews, it generated a mixed reaction. Some said that it was suicide as you are giving buyers opportunities to rant over the products they bought.
Fast-forward 15 years after, an online retail store that doesn’t have any customer feedback loops is considered irrelevant. As a matter of fact, nearly five million consumers have posted several million reviews to the site.
Truly, the internet has become one of the best research tools around. The review program allows people to post reviews that would perhaps turn into gold – that in such a way would lead consumers to buy. Yes, with the review facility, many readers have indeed decided to purchase.
More than the review system, Amazon has also created community-based features with the aim of driving sales up. First was on 1999, where they implement wish lists allowing people to share their favorite products. Also, it has launched a discussion area for a specific product. This has given them competitive advantage as they become one of the world’s largest collections of opinions. Most of all, they had become a leading source of product reviews that are becoming valuable magnet that lures people to their website.
For Amazon, I guess all they wanted is to organize this informal information well. As you see in our society today, the purchasing power is decided based on this information. For instance, if you want to buy a book, it is not because that you have spoken with the author or book publisher, but by the good words your friend has told you.
You buy BMW not because that a BMW executive has told you of its wonderful features but perhaps a good friend has told you about the benefits it bring. These are the information that Amazon wants to organize I guess.