Amazon (NASDAQ: AMZN) has a lot of secrets regarding how it decides what products customers see. In some cases, like book recommendations, it clearly factors in what you have read before and the purchases other people who have read those books have made. In other situations -- like the ads displayed on Kindle e-readers and tablets -- the formula is less clear. The online retailer has never shared many details about the algorithms and other rules that decide which products are shown when a customer searches.
Some, like the "Sponsored" and "Best Seller" designations, are self-explanatory. The first is an ad being served to you because of your search, while the other has been a popular choice in that category (though exactly what that means is not defined).
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One category, "Amazon's Choice," has always been a bit more vague. Now, the company has expanded the information it displays on some products bearing the "Choice" designation.
What has Amazon done?
On some Amazon Choice products, the company is showing three reasons that have earned the item that designation. On the company's website, the reasons are listed under the Amazon Choice logo. On its app, the retailer has a link to "Why we love this product" next to the logo.
Clicking on the link brings up the same three reasons that appear on the web version as a popup overlay that comes up from the bottom of your phone screen. A search for "microphone" brought up Fifine's USB Microphone as an Amazon Choice, and the following reasons appeared explaining why:
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Daniel B. Kline has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon. The Motley Fool has a disclosure policy.