Amazon to deliver third-party sellers with users’ data

Amazon announced on Wednesday news of a new tool that could help third-party sellers retrieve data, to better predict shoppers’ demands to create products that accommodate the market’s needs. 

Amazon Product Opportunity Explorer will provide retailers with the opportunity to gain access to data and the latest trends to assist in identifying opportunities to market their most recent products to deliver to customers’ increasing demand.

It is no surprise that the e-commerce giant’s previous conduct concerning users’ data is up for debate, as the company managed to exploit consumers’ data, in addition to counterfeiting known products and selling them under Amazon’s brand.

“Identifying and launching new products is key to retail success, but it can be costly and time-consuming. Amazon’s new Product Opportunity Explorer tool helps take the guesswork out of identifying which products to launch by providing sellers with insights into what costumers are searching for, clicking on, and buying, as well as not buying,” Amazon’s press release revealed.

“The tool helps sellers identify niches of emerging product opportunities by providing detailed data on search volume and growth, sales history, and pricing trends, so they can identify and act on customer demand,” the post added.

In its post, Amazon referenced a seller revealing the excitement following the tech mogul’s feature announcement as businesses will get “recommendations specifically relevant” to their enterprises.

While some merchants have vocalized their anticipation for the release, others do not share the same point of view, as it could potentially jeopardize their businesses since Amazon suggestions based on users’ data could delegate stores to replicate already existing merchandise.

Now, a much more significant factor immerged regarding Amazon’s way of managing users’ data, and where does it come from?

According to The Verge, a company spokesperson alleges that Product Opportunity Explorer will provide third-party sellers with accumulated data that will not release specific information about other brands on the platform.

In parallel, the e-commerce giant stated that it will provide product suggestions to visitors, strictly covering certain items users are searching for but cannot locate.

To further highlight the tool’s feature, Amazon will deliver a much bigger category and subcategory metrics, including what users are aiming to find, pricing lists, and more. 

“Amazon has a long track record of inventing for sellers, and our Product Opportunity Explorer tool is our latest innovation that provides them with insights to help them bring new products to market faster and more efficiently,” Vice President of North America Selling Partner Services at Amazon, Ben Hartman said in a statement.

 “This is another example of how we empower small businesses and entrepreneurs by providing them with powerful capabilities to reach more customers and grow,” he added. 

A tool that could potentially heighten regulatory scrutiny

In the light of Amazon’s latest tool and the regulatory wave obscuring its antitrust violation for marketplace data, the European Union (EU) accused the giant of “systematically” abusing data for its own benefit, an advantage other businesses do not have. 

From there, one cannot help but think about any potential red flags that users should be aware of regarding one of the biggest tech companies in the world using their data to generate more profit. 

What will this tool mean for the secured relationship between the retail platform and its sellers if data prediction was solemnly based on an algorithm? What if that algorithm failed to deliver accurate calculations about certain products? 

These are questions Amazon could take into consideration before releasing the beta testing for Product Opportunity Explorer before its final release data in 2022.