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Amazon Tests Shopping Feature with Huge Potential

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Pointing shoppers to cheaper products

Amazon (AMZN) has been quietly testing a shopping feature with pop-ups pointing shoppers to cheaper alternatives as they browse its marketplace, according to The Wall Street Journal. The experiment was limited to Amazon’s mobile app.

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Drawing brands as well

Such a feature could help Amazon draw more cost-conscious consumers to its marketplace, potentially boosting sales for Amazon sellers and Amazon’s revenue and helping Amazon persuade merchants to go all-in on its marketplace. As of last year, 52% of Amazon sellers had product listings on eBay (EBAY) as well, according to Feedvisor. About 25% of Amazon sellers have listings on Walmart (WMT) properties, while Shopify (SHOP), Sears (SHLDQ), and Alibaba’s (BABA) AliExpress were found to host 17%, 4.0%, and 2.0% of Amazon’s sellers, respectively. In addition to wooing cost-conscious shoppers, Amazon’s marketplace pop-up feature could attract more advertising dollars from brands seeking consumers’ attention.

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