Procurement teams everywhere should read (and reread) the front page article in today’s WSJ, entitled “Amazon Changed Search Algorithm in Ways That Boost Its Own Products”.
The article discusses how Amazon “has adjusted its product search system to more prominently feature listings that are more profitable (for Amazon)” by “ranking listings so that instead of showing customers the most-relevant listings, the site gives a boost to items that are more profitable for Amazon.”
Why should this article be a major league wake-up call for Procurement teams everywhere?
Because other than BuyerQuest, every other enterprise Procure-to-Pay solution subscribes to the ‘punchout model’ where end-users leave the eProcurement system and shop directly on the vendor's website to buy everything from Office Supplies to MRO and even Legal Services. And the moment the end user clicks on that punchout link, corporations are handing purchasing control over to the vendors who only have their own best interests (and profitability) in mind.
While this article highlights potential actions by Amazon, every other large distributor acts in a very similar way. These distributors all monitor website user behavior and tune the search engine to maximize revenue and profits
Do I blame Amazon (and every other large distributor)? Heck no! The fact is, when a user is shopping on your site, YOU CONTROL THE SHOPPER!
If you work in corporate procurement and want to take back control of your user's shopping experience (and your organization’s spend), please reach out to BuyerQuest to see how we are empowering the world’s largest organizations to ‘take back control’ of corporate spend.