I’ve been reading up on keyword query ranking optimization literature recently. In this context, we’re looking at e-commerce platforms like Amazon or Taobao, where multiple third-party sellers offer similar products when a user searches for a specific keyword. The platform’s goal is to maximize both the seller’s profit (a combination of surplus and revenue, calculated as price multiplied by quantity) and consumer satisfaction. So, the main questions here are:
- How should products be ranked?
- Is there an optimal strategy for auctioning slots to provide additional information and boost profits?
However, while going through these materials, another intriguing thought crossed my mind. In the realm of consumer behavior on e-commerce platforms, inspired by recent shopping frenzies like the double-11 shopping festival, here’s an idea: could consumer search theory offer a more effective way to model the impact of placing a “buy now” button above the “add to cart” button?
This setup offers a more convenient way for users to instantly make a purchase, as opposed to the traditional process of adding items to the cart, finalizing the purchase selection, calculating discounts, making marginal choices, and then completing the purchase.
The presence or absence of the “buy now” button or even the exclusion of the “add to cart” option (as seen in platforms like PingDuoDuo or TEMU) could potentially influence consumer behavior, resulting in increased or decreased sales. It’s an intriguing question to ponder, and it could be a valuable research area, especially if it hasn’t been explored extensively before…