Amazon's “Small Business” badge has big seller energy.
The badge was intended to help customers support small businesses in the U.S. However, The Information reported today that the e-commerce giant has been putting a U.S. small business label on items from foreign sellers and big-time players like Johnson & Johnson.
Some products have also been categorized as coming from Black-owned small businesses that are neither small nor Black-owned.
💼 Rollout of Small Business Badges
The rollout of Small Business badges coincided with the company's move to recruit sellers to fight proposed antitrust legislation in the U.S. last year, arguing that regulating its marketplace would harm American small businesses.
Amazon says only U.S.-based small businesses that employ less than 100 people and earn less than $50 million in annual revenue are eligible for the badge. But, The Information found that the e-commerce giant has bestowed the badge on items from multinational corporations with thousands of employees, as well as items sold by overseas merchants.
🤔 Negligent Management of Badge Program
According to the CEO of an Amazon seller consultancy, the problem is that if the company is not managing its badge program, it is being negligent and unfairly benefiting companies that don't require assistance, while disadvantaging genuine small businesses.
The report noted it's difficult to determine the exact impact that receiving a Small Business badge or being featured on the Black-Owned Business page has on sales. However, Amazon sellers agree that any badge or label can help items stand out on search result pages crowded with sponsored listings.
