In the aftermath of Black Friday and Cyber Monday, troubling practices among some Amazon sellers have come to light, raising concerns about marketplace integrity. These tactics not only disrupt fair competition but directly harm compliant sellers who play by the rules.
The BSR Loophole: Misclassification as a Growth Hack
Reports indicate that during the peak shopping period, certain sellers deliberately listed popular products in obscure, low-traffic categories. This manipulation tricks Amazon's algorithm into awarding undeserved "Best Seller Rank" (BSR) badges, artificially boosting search visibility.
One egregious example involved a smartphone stand appearing under "automotive axle replacements"—a category with significantly fewer purchases. The stand quickly topped the BSR chart in this mismatched category. Similar cases have been documented across phone cases, USB drives, and particularly smartphone stands, with over 25 confirmed instances during the holiday season alone.
The Fallout: Honest Sellers Pay the Price
While the full scale remains unclear, the financial impact on legitimate businesses is undeniable. One phone accessory merchant reported a 50% sales decline during what should have been their most profitable period, despite submitting hundreds of violation reports to Amazon.
"When sellers game the system this way, they can see sales spikes up to 50%," explained Lesley Hensell, co-founder of Riverbend Consulting. "Most shoppers never notice the incorrect categorization, leaving ethical sellers buried in search results."
Automation's Blind Spot: Platform Oversight Challenges
Amazon's heavy reliance on automated systems—while efficient for managing millions of sellers—creates vulnerabilities. The company acknowledges using machine learning to detect misclassified products, with human reviewers stepping in when needed. Policy violations typically begin with warnings, escalating to account suspensions for repeat offenders.
This isn't Amazon's first categorization crisis. During the pandemic, sellers notoriously listed masks under books and video games to bypass safety regulations. Such maneuvers not only distort markets but can endanger consumers.
A Broader Problem: Fake Reviews and Sabotage
Category manipulation joins a roster of marketplace abuses, including review fraud. Some sellers artificially inflate ratings, while others weaponize negative reviews against competitors. The Federal Trade Commission has warned that deceptive practices like fake reviews could trigger penalties exceeding $40,000 per violation.
Restoring Fair Play: Shared Responsibility
Amazon has intensified efforts against review fraud, banning suspicious accounts and pursuing legal action against review-for-hire services. However, as long as competitive incentives exist, abuses will persist. The solution requires both platform improvements and seller accountability.
Industry observers anticipate stricter BSR safeguards as Amazon works to protect its marketplace ecosystem. For compliant sellers, the path forward involves vigilant reporting paired with continued focus on product quality and customer service excellence.