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amazon make money from home reviews

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amazon make money from home reviews

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    Published Online:25 Feb 2022https://doi.org/10.1287/mksc.2022.1353 We study the market for fake product reviews on Amazon.com. Reviews are purchased in large private groups on Facebook and other sites. We hand-collect data on these markets and then collect a panel of data on these products' ratings and reviews on Amazon, as well as their sales rank, advertising, and pricing policies. We find that a wide array of products purchase fake reviews, including products with many reviews and high average ratings. Buying fake reviews on Facebook is associated with a significant but short-term increase in average rating and number of reviews. We exploit a sharp but temporary policy shift by Amazon to show that rating manipulation has a large causal effect on sales. Finally, we examine whether rating manipulation harms consumers or whether it is mainly used by high-quality products in a manner like advertising or by new products trying to solve the cold-start problem. We find that after firms stop buying fake reviews, their average ratings fall and the share of one-star reviews increases significantly, particularly for young products, indicating rating manipulation is mostly used by low-quality products.

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    It's tough making your living online โ€“ the web has a way of bringing out the worst in people as many users hide under the internet's veil of anonymity to spread slander they'd never dream of voicing IRL. It's not a matter of if you'll ever get a bad review โ€“ it's just a matter of when. Prepare for the worst. You'll get bad reviews. Maybe even really terrible ones. Criticisms may be indelicate, undeserved, or even downright cruel, and there's no internet police who will come around and slap those naughty complainers on the wrists. That means it's up to you to handle the situation. We suggest that you...

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