amazon launches a program to pay consumers for their data on non-amazon purchases

Amazon has introduced a new initiative that provides direct compensation to customers in exchange for details regarding their purchases made outside of Amazon.com, as well as their participation in brief surveys. Known as the Amazon Shopper Panel, this program requests that users submit ten receipts each month for transactions completed at retailers other than Amazon, encompassing locations such as grocery stores, department stores, pharmacies, and entertainment venues (where available), including cinemas, amusement parks, and restaurants.
Purchases from Amazon-owned stores, for example Whole Foods Market, Amazon Go, Amazon Four Star, and Amazon Books, are not eligible for inclusion in the program.
Individuals participating in the program will utilize the recently released Amazon Shopper Panel mobile application, accessible on both iOS and Android platforms, to photograph qualifying paper receipts. Alternatively, they can forward digital receipts to receipts@panel.amazon.com to receive a $10 reward, which can then be credited to their Amazon Balance or donated to a charity of their choice.
Amazon states that users can subsequently earn further rewards on a monthly basis by completing available surveys. These optional surveys will focus on brands and products of potential interest to the participant, as well as their likelihood of making a purchase. Some surveys may also inquire about the participant’s reaction to specific advertisements. The value of these rewards will vary depending on the individual survey.
Currently, participation in the program is based on an opt-in and invitation-only system, and is limited to consumers residing in the United States. Those who have received an invitation can now download the Shopper Panel app and join the panel. Other interested individuals can use the app to register for the waitlist and request an invitation.
Amazon assures users that any sensitive data contained within uploaded receipts, such as prescription details, will be removed. However, personal information will be retained in accordance with Amazon’s established Privacy Policy. Users will have the option to delete previously submitted receipts at any time.Consumer research panels are a common practice; however, Amazon intends to leverage the collected data in a variety of ways.
According to information on the program’s website, Amazon “may use” customer data to enhance product offerings at both Amazon.com and Whole Foods Market, as well as to refine the content available through Amazon services, including Prime Video.
Amazon also explains that the gathered data will assist advertisers in understanding the connection between their advertisements and actual product purchases at an aggregated level. Furthermore, it will aid Amazon in developing models to predict which customer segments are most likely to be interested in specific products. Amazon may also provide data to brands to facilitate feedback on their existing products, as noted on the website.
The launch of this program occurs amidst growing scrutiny regarding Amazon’s business practices, particularly concerning potential anti-competitive behavior and the utilization of consumer purchase data, both within the U.S. and internationally.U.S. regulators have raised concerns about Amazon’s use of sales data from third-party sellers to benefit its own private label products. During testimony before Congress in July, Amazon CEO Jeff Bezos stated that the company had a policy against this practice, but could not guarantee that it had not occurred. The retailer may also be facing antitrust investigations in the European Union regarding this issue.
Simultaneously, Amazon has been increasing its investment in its advertising division, which experienced a 44% year-over-year growth in Q1, reaching $3.91 billion. This growth rate surpassed those of both Google (13%) and Facebook (17%), although it remains significantly smaller in overall revenue – Google ads generated $28 billion and Facebook $17.4 billion during the same period, as reported by Digiday.
The acceleration of e-commerce adoption due to the pandemic has also expedited Amazon’s need to optimize its advertising capabilities, potentially requiring it to acquire more data than it can currently collect directly from its own website.
In a communication to advertisers regarding the program’s launch, Amazon emphasized that its e-commerce business represents a relatively small portion of the overall retail market – a point the company frequently makes in an effort to avoid increased regulation.
The retailer further explained that the Shopper Panel could assist it in supporting sellers and brands by providing additional insights beyond those available within its own marketplace.
Amazon has not specified when the program waitlist will be eliminated, but encourages interested individuals to sign up starting today.