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# Amazon Ends Bookstores, Review Trust Down, CX a Google Ranking Factor
- URL: https://www.nearmedia.co/amazon-ends-bookstores-review-trust-down-cx-a-google-ranking-factor/
- Published: 2022-03-04T17:52:19.000Z
- Updated: 2022-03-08T22:54:59.000Z
- Author: Greg Sterling
- Tags: News

### Amazon Kills Bookstores for Grocery Biz

Amazon's CEO Andy Jassy has [made the decision](https://www.reuters.com/business/retail-consumer/exclusive-amazon-close-all-its-physical-bookstores-4-star-shops-2022-03-02/?ref=nearmedia.co) to shutter most of the company's brick and mortar locations to focus on grocery stores (Whole Foods, Fresh, Go). This means Amazon's 68 bookstores, Amazon 4-Star locations and pop-up stores will be closed. Reuters said that the company will still pursue [Amazon Style](https://www.nearmedia.co/amazons-new-style-facebook/). The decision was simple economics: offline revenue is a tiny fraction of Amazon's total business. Offline sales were just 3% of Amazon's total sales in Q4, dominated by grocery. However, Amazon controls only about \~2.5% of the grocery market according to third party research. The [value of the US grocery market](https://www.ibisworld.com/industry-statistics/market-size/supermarkets-grocery-stores-united-states/?ref=nearmedia.co) is just over $765 billion – so there's lots room for growth. Only recently analysts [called](https://www.cnbc.com/2022/02/19/amazons-sprawling-grocery-business-has-become-an-expensive-hobby.html??ref=nearmedia.co) Amazon's grocery business an "expensive hobby." 

![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2022/03/Fresh.jpeg)

Source: Amazon

**Our take:** 

- Amazon Fresh will use "[just walk out](https://justwalkout.com/?ref=nearmedia.co)" cashierless tech. The company is also [implementing it at two Whole Foods](https://www.theverge.com/2022/3/1/22956093/amazon-whole-foods-just-walk-out-cashierless-tech-glover-park-washington-dc?ref=nearmedia.co) stores – so far.
- Price often drives grocery shopping; however enhanced experiences will win at the high end. Eventually, the major chains will all be cashier free.
- Having physical stores remains important for Amazon as return centers and pickup locations for online. But grocery performs that function.

### Reviews Paradox: Consumer Reliance Up, Trust Down

More than three-fourths (77%) of consumers now "always" or "regularly" read local business reviews, according to a recent BrightLocal [survey](https://www.brightlocal.com/research/local-consumer-review-survey/?ref=nearmedia.co) (n=\~1K US adults). That's up from 60% in 2020\. The "never read" number was 2%, down from 13% in 2020\. More people than ever are reading reviews. At the same time, more of them believe they've encountered fake reviews: "62% of consumers believe they’ve seen a fake review for a local business in the past year." The top three sites where consumers believe they've seen fake reviews are: 1) Amazon, 2) Google and 3) Facebook. However people are most "suspicious" of fake reviews on Facebook – 70% are "very suspicious" or "fairly suspicious." Compare: 59% for Amazon and 45% for Google. And two-thirds (67%) said having seen fake reviews makes them more distrustful of online reviews generally. 

![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2022/03/Screen-Shot-2022-03-04-at-8.03.40-AM.png)

Source: BrightLocal (2022)

**Our take:** 

- Awareness of fake reviews is rising because of increasing media coverage, not because people are actually detecting them more often.
- Perception and reality: People assume there are more fake reviews on Facebook because of the company's scandals and shady behavior.
- A prior [analysis of 4 million reviews](https://www.nearmedia.co/meh-ta-moment-fake-reviews-gmb-a-big-lead-driver/) found Google had the most (10.7%) then Yelp (7.1%), Tripadvisor (5.2%), Facebook (4.9%). (Amazon wasn't part of the study, but it's [full of review fraud](https://www.nearmedia.co/amazon-ready-to-selz-amazon-review-fraud/).)

### Google: Better CX = Better Rankings 

There are numerous variables Google uses to rank websites. They involve online signals almost exclusively (though [LSAs](https://support.google.com/localservices/answer/7527305?hl=en&ref=nearmedia.co) have a "responsiveness" ranking element). But a new "[Shopping Experience Scorecard](https://support.google.com/merchants/answer/11192630?hl=en&ref=nearmedia.co)" (US only) takes a step into the real world. It promises to reward retailers/sellers that offer a better customer experience (CX) with better Google Shopping visibility. The company says, "The program will monitor the experience you provide to customers in several areas, including **shipping speed, shipping cost, return cost, and return window**." This will translate into a rating of "excellent," "comparable" or "opportunity." The information Google uses for its Scorecard is based on self-reported data. The criteria are similar to Google's [Retailer Standards](https://support.google.com/merchants/answer/7574576?ref=nearmedia.co), but Scorecard applies to "any merchant." (using Merchant Center). 

![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2022/03/Screen-Shot-2022-03-04-at-9.27.30-AM.png)

Source: Google 

**Our take:** 

- In addition to ranking better, "excellent" merchants will receive "a badge on your listings that improves user trust in buying from you."
- It appears Google isn't attempting to independently verify the accuracy of the information provided. That *could be* a next step.
- Google could go further and bring more "offline" data into rankings – reviews are a proxy for that. Would make ranking harder to game.

## Short Takes

- Confirmed by AI: **Google Duplex** verifying [business details](https://searchengineland.com/google-confirmed-by-phone-label-in-local-panel-may-add-trust-to-local-listings-381637?ref=nearmedia.co) (e.g., hours).
- **Google Business Profiles** may require [second verification method](https://www.seroundtable.com/google-business-profiles-additional-verification-33006.html?ref=nearmedia.co).
- **Google Maps, Tripadvisor** blocking reviews in Russia ([WSJ](https://www.wsj.com/livecoverage/russia-ukraine-latest-news-2022-03-02/card/tripadvisor-google-maps-suspend-reviews-of-some-russian-listings-vM2no1PgGDmMkL2TSvPZ?ref=nearmedia.co)).
- Where to donate to [support the people](https://www.npr.org/2022/02/25/1082992947/ukraine-support-help?ref=nearmedia.co) of **Ukraine**.
- Survey: **SMBs** still [having trouble](https://www.surveymonkey.com/curiosity/cnbc-small-business-q1-2022/?ref=nearmedia.co) filling jobs, worried about inflation.
- **Push to reinvent Twitter** and give developers more control ([NYT](https://www.nytimes.com/2022/03/02/technology/twitter-platform-rethink.html??ref=nearmedia.co)).
- **Facebook** [shutting down](https://techcrunch.com/2022/03/02/facebook-is-shutting-down-its-college-student-only-social-network-campus/?ref=nearmedia.co) college-student network Campus after a year.
- **Owner.com** a breakout new star in local [restaurant management SaaS](https://techcrunch.com/2022/03/03/owner-com-independent-restaurants/?ref=nearmedia.co).
- **Walmart and Target** used scale, resources to [tame supply chain woes](https://www.retaildive.com/news/size-matters-how-walmart-and-target-dominated-amid-disruption-inflation/619626/?ref=nearmedia.co).
- **Target's online sales** [grow $13 billion](https://www.digitalcommerce360.com/2022/03/03/target-online-sales-grow-13-billion-over-2-years/?ref=nearmedia.co) since 2019\.
- **American Eagle** the latest fashion brand [to debut on Roblox](https://www.retaildive.com/news/american-eagle-debuts-on-roblox-with-inclusive-club-showcasing-spring-appar/619764/?ref=nearmedia.co).
- Poll: Large majorities of Americans have [never used](https://theharrispoll.com/future-of-ar-vr-metaverse/?ref=nearmedia.co) **AR or VR**.
- **Walmart** [implementing virtual try-ons](https://www.cnbc.com/2022/03/02/walmart-rolls-out-virtual-fitting-room-to-help-shoppers-find-clothes.html?ref=nearmedia.co) for clothes on website.
- Why SaaS companies [should adopt](https://streetfightmag.com/2022/03/03/why-and-how-businesses-should-embrace-product-led-growth/??ref=nearmedia.co) a **product-led growth** strategy.
- **Online privacy notices** often backfire, [trigger consumer concerns](https://www.mediapost.com/publications/article/371646/the-surprising-costs-of-online-privacy-notices.html?ref=nearmedia.co).

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