To be listed at Amazon.com’s Christmas recommendations for toys, manufacturers are said to have paid up to two million dollars. This was reported by the media company Bloomberg.

What do the Lego Harry Potter Castle, a 36 pack Play-Doh Dough and the Fisher-Price Batmobil have in common? They are all on the Holiday Toy List at Amazon.com, the list of toy recommendations for Christmas. 100 toys, games and gifts for children are prominently listed here. Parents and other donors will find this selection helpful in keeping track of the variety of toys. Christmas is traditionally the peak season for many toy manufacturers. They generate a large part of the annual turnover in this period. Amazon also knows this. According to the media company Bloomberg, the group has had a placement on its Holiday Toy List at Amazon.com paid dearly. The talk is of up to two million US dollars. The more a company paid, the more products it could nominate for the list and the more prominent the toys would be presented on the website. According to Bloomberg, the online giant wanted to earn at least 20 million dollars.

Consumer protectors criticize Amazon’s list

US consumer protectors accuse the group of deception. Because to the outside world, Amazon.com presents its list of recommendations as an independent selection. Anne Carrihill, head of the Toys & Games category at Amazon.com: “Our Top 100 toys and games have been carefully assembled by a team of experts to highlight the latest, best-selling and most talked-about toys. There is no indication on the homepage that these are paid placements. Robert Weissman, President of Public Citizen: “They don’t write a ‘paid ad’ on it because it completely changes the way consumers perceive the information”. As customers value recommendations from independent sources more, companies would prefer to keep their financial participation secret. For Weissmann, it is perfectly legal for Amazon to sell advertising on its website. But it would become a problem if the world’s largest online retailer told buyers that the recommendations were curated by experts, but did not reveal the money he received from the toy industry.

Walmart also allows placements to be paid for

Experts see the recommendation lists as a fast growing area in Amazon’s advertising business. With the Christmas gift guides for toys, electronics and household goods alone, a turnover of over 120 million dollars was achieved in 2017. According to Bloomberg this is an increase of 40 percent compared to the previous year. This example shows how tough the Christmas business is. Other companies are also asking the manufacturers to pay in order to be included on the Christmas recommendation lists. According to Bloomberg, Walmart Inc. takes 10,000 US dollars per product per month so that toy companies appear on the “Buyer’s Picks” toy list in November and December. Christmas is also the peak season in terms of advertising prices. According to Bloomberg, optimal advertising space in the toy sector on the Walmart homepage will cost 180,000 US dollars in November. Amazon is aware of its market power and is charging even higher amounts of 300,000 dollars.

 

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Link: For placements on the Holiday Toy List, Amazon is to charge toy manufacturers high amounts.

Image: Amazon

//KH