20 Psychological Tricks Amazon Uses to Make You Buy More
In the world of e-commerce, Amazon reigns supreme. With a market capitalization of over $1 trillion and a staggering 38.7% share of the US e-commerce market, Amazon’s influence on consumer behavior is unparalleled. But have you ever wondered how this tech giant manages to keep us hooked, making us buy more than we intended and keep coming back for more?
The answer lies in Amazon’s masterful use of cognitive biases — the psychological quirks that influence our decision-making, often without us even realizing it. These biases are hardwired into our brains, the result of millions of years of evolution. They served our ancestors well in a world of scarcity and immediate threats, but in today’s complex consumer landscape, they can often lead us astray.
Amazon understands these biases better than anyone else. They’ve built an empire by leveraging these psychological tricks to their advantage, shaping our buying habits and keeping us loyal to their platform. From the moment we land on their website to the post-purchase follow-up, Amazon is playing a game of cognitive chess, anticipating our moves and steering us towards the “Buy Now” button.
In this article, we’ll dive into 20 of the most powerful cognitive biases that Amazon leverages to influence our behaviour. We’ll see how they tap into our fear of missing out, our desire for social proof, and our tendency to favour the familiar, among many other biases. By the end, you’ll have a newfound appreciation for the psychological sophistication behind Amazon’s success — and perhaps a few strategies to defend yourself against their persuasion tactics.
Cognitive Bias #1: Anchoring Bias
Anchoring bias refers to our tendency to rely heavily on the first piece of information we receive (the “anchor”) when making decisions or estimates. This initial information can heavily influence our subsequent judgments, even if it’s not directly relevant or if we’re presented with more accurate information later.
Amazon often employs anchoring by displaying the original price of a product alongside the discounted price. The original price serves as the anchor, and the discounted price seems more attractive in comparison, even if the original price was inflated or the discount is minimal. This tactic makes shoppers feel like they’re getting a good deal, increasing the likelihood of a purchase.
Cognitive Bias #2: Social Proof
Social proof is the idea that people will conform to the actions of others under the assumption that those actions are reflective of the correct behaviour. In other words, we tend to follow the crowd, especially when we’re unsure about a decision.
Amazon leverages social proof by prominently displaying product reviews, ratings, and the number of ratings. Seeing that many other people have bought and positively reviewed a product can be a powerful, persuasive factor. Amazon also shows “Best Seller” or “Amazon’s Choice” badges, suggesting that a product is popular and trusted.
Cognitive Bias #3: Scarcity Bias
Scarcity bias refers to the tendency to place a higher value on things that are scarce and a lower value on things that are abundant. When we perceive something as being in limited supply, we often feel a sense of urgency and a greater desire to acquire it.
Amazon creates a sense of scarcity by highlighting limited stock (“Only 3 left in stock”), offering exclusive deals for a limited time, or showing that a deal is available for a specific time period (“Deal of the Day”). These tactics tap into our fear of missing out (FOMO) and can spur us to make a purchase quickly.
Cognitive Bias #4: Zeigarnik Effect
The Zeigarnik Effect, named after Soviet psychologist Bluma Zeigarnik, refers to our tendency to remember incomplete or interrupted tasks better than completed ones. This bias suggests that people have a better memory for tasks that are left unfinished, as the lack of closure creates mental tension.
Amazon leverages the Zeigarnik Effect through its “Save for Later” or “Add to Wish List” features. When a shopper adds an item to their cart or wish list but doesn’t complete the purchase, it creates a sense of an unfinished task. This mental tension can lead to the shopper thinking about the product more frequently, increasing the likelihood that they will return to complete the purchase.
Amazon also sends targeted emails about items left in a shopper’s cart or on their wish list. These reminders further reinforce the Zeigarnik Effect, nudging the shopper to close the loop by finalizing the purchase.
Additionally, features like “Buy Now with 1-Click” reduce friction in the buying process, making it easier for shoppers to quickly complete a purchase and relieve the mental tension associated with an unfinished task.
By creating a sense of incompleteness and then providing easy ways to resolve that tension, Amazon can drive more sales and keep products top-of-mind for potential buyers.
Cognitive Bias #5: Framing Effect
The framing effect is a cognitive bias where people decide on options based on whether the options are presented with positive or negative connotations; e.g. as a loss or as a gain. People tend to avoid risk when a positive frame is presented but seek risks when a negative frame is presented.
Amazon uses the framing effect in its product descriptions and promotions. For example, instead of saying “pay $50 for shipping,” Amazon might say “free shipping with Prime membership.” The first statement frames the shipping cost as a loss, while the second frames it as a gain (free shipping) if you take a certain action (join Prime). This positive framing can influence shoppers to make the choice that Amazon wants them to make.
Cognitive Bias #6: Endowment Effect
The endowment effect is a cognitive bias that causes individuals to value an owned object higher, often irrationally, than its market value. In other words, people ascribe more value to things merely because they own them.
Amazon’s liberal return policy leverages the endowment effect. By giving shoppers the ability to easily return products, Amazon reduces the perceived risk of buying. Shoppers feel more comfortable making a purchase because they know they can return it if they don’t like it. However, once they have the product in their possession, the endowment effect kicks in, and they’re more likely to keep it because they now feel a sense of ownership.
Cognitive Bias #7: Choice Overload
Choice overload, also known as the paradox of choice, suggests that an abundance of options can lead to decision-making paralysis, decreased motivation, and less satisfaction with choices. When faced with too many choices, people often have a harder time making a decision and feel less content with their selection.
While Amazon offers a vast array of products, it manages the potential for choice overload through its user interface and recommendations. The site provides filters and sorting options to help shoppers narrow down their choices based on their preferences. It also offers personalized recommendations based on a user’s browsing and purchase history, effectively curating a smaller, more relevant set of options. This strikes a balance between offering variety and helping shoppers avoid overwhelming choices.
Additionally, features like “Best Seller,” “Amazon’s Choice,” and “Frequently Bought Together” serve as signposts for shoppers, offering a shortcut to what is likely a satisfying choice without the paralysis of considering every option.
Cognitive Bias #8: Sunk Cost Fallacy
The sunk cost fallacy is the tendency for people to continue investing time, effort, or money into something because of previously invested resources, even when it’s no longer rational to do so. People feel compelled to justify past investments by continuing down the same path, even if it’s not the best decision moving forward.
Amazon Prime is a prime (pun intended) example of leveraging the sunk cost fallacy. Once a customer pays for a Prime membership, they feel compelled to justify that cost by making more purchases on Amazon, even if they could find a better deal elsewhere. The more they invest in the Amazon ecosystem (e.g., Kindle books, Amazon Music, Prime Video), the more likely they are to keep investing to justify their past decisions.
Cognitive Bias #9: Halo Effect
The halo effect is a cognitive bias in which our overall impression of a person, company, or product influences how we feel and think about their character or properties. If we see a person or thing in a positive light in one area, we are more likely to have a positive predisposition toward everything about that person or thing.
Amazon’s reputation for good customer service, fast shipping, and easy returns creates a halo effect. Customers are more likely to buy products from Amazon, even if they’re more expensive, because they trust and like the company. This positive impression bleeds over into how customers perceive the quality of products sold on Amazon, even if Amazon itself isn’t the seller.
Moreover, when Amazon launches a new product or service (like Amazon Music or Amazon Pharmacy), the halo effect of the Amazon brand makes customers more receptive and more likely to trust and try these new offerings.
Cognitive Bias #10: Decoy Effect
The decoy effect, also known as the asymmetric dominance effect, is the phenomenon whereby consumers will tend to have a specific change in preference between two options when also presented with a third option that is asymmetrically dominated. In other words, when we’re choosing between two options, the introduction of a third, less attractive option can make one of the original options look more appealing in comparison.
\You might see the decoy effect in action when Amazon presents its pricing tiers for products or services. For example, let’s say Amazon offers a Kindle e-book for $9.99 and a paperback for $13. Then, they introduce a hardcover option for $30. The hardcover serves as a decoy — it makes the paperback look more attractive in comparison. Customers might think, “I could spend $30 on the hardcover, or I could get the paperback for less than half that price.” The decoy option shifts their perception of the other choices.
Similarly, Amazon Web Services (AWS) offers multiple tiers for its cloud computing services. The presence of a high-end, expensive tier can make the middle tiers seem like a good compromise between price and performance, even if the middle tier is more than sufficient for a customer’s needs.
Cognitive Bias #11: Consistency and Commitment
The consistency and commitment bias refers to our desire to be consistent with our past actions and commitments. Once we’ve made a choice or taken a stand, we feel internal and external pressure to behave consistently with that commitment. This bias is rooted in our desire to be (and appear to be) consistent with what we have already done or said.
Amazon leverages this bias through its review and rating system. When a customer leaves a review or rates a product, they’ve publicly committed to their opinion. This commitment makes them more likely to stand by their review and continue to feel positively (or negatively) about the product.
Additionally, features like wishlists and “Save for Later” create a sense of commitment. Once a customer has added an item to their wishlist, they feel more invested in it and are more likely to eventually buy it to remain consistent with their initial interest.
Cognitive Bias #12: Reciprocity Bias
The reciprocity bias refers to our tendency to feel obligated to reciprocate when someone does something for us. If we receive a gift, favor, or kind gesture, we feel a strong need to repay that kindness. This bias is deeply ingrained in human culture and psychology.
Amazon Prime is a masterful use of the reciprocity bias. By offering free, fast shipping, exclusive deals, and access to streaming services, Amazon is essentially giving customers a gift. Customers feel obligated to reciprocate by being loyal to Amazon and making more purchases.
Furthermore, when Amazon occasionally extends a courtesy, like a refund or an extra month of Prime for free, customers feel even more indebted to the company. They’re more likely to speak positively about Amazon and to choose Amazon for future purchases.
Cognitive Bias #13: Mere Exposure Effect
The mere exposure effect is a psychological phenomenon by which people tend to develop a preference for things merely because they are familiar with them. In other words, the more we’re exposed to something, the more we like it.
Amazon’s homepage and product recommendations are a constant source of exposure. Every time a customer visits Amazon.com, they see the Amazon logo, products they’ve viewed before, and products similar to their past purchases. This repeated exposure makes customers more comfortable with Amazon and the products it suggests.
Additionally, Amazon’s retargeting ads follow customers around the internet, showing them products they’ve viewed on Amazon. This continued exposure, even when customers aren’t on Amazon’s site, keeps Amazon and its products top of mind.
Amazon’s Kindle and Amazon Fire devices also serve as constant physical reminders of Amazon, and their very presence in a customer’s life is a form of repeated exposure that can strengthen the customer’s affinity for Amazon.
Cognitive Bias #14: Status Quo Bias
The status quo bias is a cognitive bias that leads people to prefer things to stay the same. It’s the tendency to maintain the current state of affairs, even when change might be beneficial. This bias can lead to resistance to change and a preference for default options.
Amazon leverages the status quo bias through its subscription services and default settings. Once a customer signs up for a service like Amazon Prime, Amazon Music, or Subscribe & Save, they’re likely to continue their subscription out of a preference for the current state.
Additionally, Amazon’s default settings, like 1-Click ordering or default shipping addresses, make it easy for customers to maintain their current preferences. Customers are less likely to change these settings once they’re in place, even if there might be a better option.
Cognitive Bias #15: Authority Bias
Authority bias is the tendency to attribute greater accuracy to the opinion of an authority figure (unrelated to its content) and be more influenced by that opinion. People tend to defer to experts or those in positions of authority, even when their judgment might be flawed.
Amazon leverages authority bias through its endorsements and partnerships. When a well-known figure or influencer recommends a product on Amazon, customers are more likely to trust that recommendation and make a purchase.
Furthermore, labels like “Amazon’s Choice” or “Best Seller” carry an implicit authority. Customers may defer to these labels, assuming that Amazon is an expert in determining the best products.
Amazon’s own product lines, like Amazon Basics or Amazon Essentials, also benefit from the authority of the Amazon brand. Customers may trust these products more because they come from Amazon, even if they don’t have other information about their quality.
Cognitive Bias #16: The Priming Effect
The priming effect occurs when exposure to one stimulus influences how a person responds to a subsequent, related stimulus. In other words, the initial stimulus “primes” the individual’s response to the next one. This can happen unconsciously, and the stimuli can be related in seemingly irrelevant ways.
B. How Amazon Uses It Amazon uses priming in several ways:
- Product Placement: The products Amazon displays first on a search page or category page can prime customers for the subsequent products they see. For example, if the first few products are high-priced, customers may perceive the later products as more affordable, even if they’re still relatively expensive.
- Product Bundles: Amazon often bundles related products together (e.g., a camera with a memory card and case). The main product primes the customer to perceive the bundled accessories as necessary or highly relevant.
- Recommendations: Amazon’s “Frequently bought together” and “Customers who bought this item also bought” sections prime customers to think about purchasing additional, related items.
- Reviews and Ratings: The reviews and ratings on a product page can prime a customer’s expectations before they even read the full product description.
- Seasonal and Event Marketing: Amazon heavily promotes products related to upcoming holidays, events, or seasons (e.g., backpacks during back-to-school season). This primes customers to think about making purchases related to these events.
By strategically arranging and presenting stimuli, Amazon can guide customers’ thoughts and behaviours in ways that increase the likelihood of sales. Understanding the priming effect can help customers recognize when they’re being influenced and make more intentional choices.
Cognitive Bias #17: Confirmation Bias
Confirmation bias is the tendency to search for, interpret, favour, and recall information in a way that confirms or supports one’s prior beliefs or values. It’s the inclination to focus on information that affirms what we already believe.
Amazon’s recommendation algorithms are designed to show customers products that align with their previous searches, views, and purchases. If a customer has shown an interest in a particular type of product or brand, Amazon will show them more of the same. This reinforces the customer’s existing preferences and beliefs.
Additionally, Amazon’s product reviews can serve as confirmation bias. Customers may seek out reviews that align with their preexisting opinions about a product. If they’re inclined to like a product, they may focus on the positive reviews that confirm that inclination.
Amazon’s targeted advertising also plays into confirmation bias. By showing customers ads for products similar to what they’ve already viewed or bought, Amazon reinforces the customer’s existing interests and preferences. This makes them more likely to click on the ad and make a purchase.
Cognitive Bias #18: Focusing Illusion
The focusing illusion is the tendency to place too much importance on one aspect of an event, causing an error in accurately predicting the utility of a future outcome. In other words, people focus on a particular detail and overestimate its importance in the grand scheme.
Amazon’s product listings often highlight certain features or specifications, drawing the customer’s attention to those aspects. For example, a listing for a TV might prominently display the screen size and resolution, causing the customer to focus on those features and potentially overestimate their importance in the overall viewing experience.
Similarly, Amazon’s deal pages and promotions often highlight the percentage or amount of the discount, causing customers to focus on the perceived savings rather than evaluating whether they truly need or want the product.
Cognitive Bias #19: Illusion of Control
The illusion of control is the tendency for people to overestimate their ability to control events, even when they have no influence over the outcome. It’s the belief that one can influence external events, when in reality, they cannot.
Amazon’s various filtering and sorting options can give customers a sense of control over their shopping experience. By allowing customers to filter by price, brand, customer rating, and other factors, Amazon creates the illusion that customers are in control of finding the perfect product when, in reality, their choices are limited to what Amazon chooses to offer.
Similarly, features like wishlists and “Save for Later” can give customers a feeling of control over their future purchases, even though they haven’t actually committed to buying anything.
Cognitive Bias #20: Peak-End Rule
The peak-end rule is a psychological heuristic in which people judge an experience largely based on how they felt at its peak (i.e., its most intense point) and at its end, rather than based on the total sum or average of every moment of the experience. The effect occurs regardless of whether the experience is pleasant or unpleasant.
Amazon’s customer service is designed to create positive peak and end experiences. If a customer has an issue with an order, Amazon’s responsive customer service aims to resolve the problem quickly and satisfactorily. Even if the overall experience was negative (e.g., a product arrived damaged), a positive interaction with customer service at the end can overshadow the negative experience.
Similarly, Amazon’s packaging and unboxing experience is designed to create a positive peak moment. The anticipation of receiving a package and the satisfaction of opening it can create a memorable, positive peak in the shopping experience.
Finally, Amazon’s post-purchase follow-up, such as thank-you emails or requests for product reviews, is intended to create a positive end to the shopping experience. By reaching out after the purchase, Amazon extends the interaction and has another opportunity to leave a positive impression.
Lessons for Marketers, Business Owners, and Brand Strategists:
- Understand and leverage cognitive biases in your marketing strategies.
- Frame your offerings positively to influence consumer perception.
- Use social proof to build trust and credibility.
- Create a sense of scarcity and urgency to drive sales.
- Simplify choices to prevent decision paralysis.
- Invest in customer service to create positive peak and end experiences.
- Foster a sense of reciprocity through gifts, discounts, and personalized experiences.
- Consistently expose customers to your brand to increase familiarity and likability.
- Leverage authority figures and influencers to endorse your products.
- Align your marketing with customers’ existing beliefs and preferences.
Lessons for Consumers:
- Be aware of cognitive biases and how they influence your purchasing decisions.
- Look beyond the framing of a product and consider its true value.
- Don’t rely solely on social proof; do your own research.
- Recognize when scarcity is being used to pressure you into a purchase.
- When faced with many choices, focus on your needs rather than getting overwhelmed.
- Evaluate your overall experience, not just the peak or end moments.
- Don’t feel obligated to reciprocate if a company offers you something for free.
- Familiarity with a brand doesn’t always equate to quality or suitability.
- Question authority figures and influencers; they may have biases or ulterior motives.
- Seek out information that challenges your assumptions, not just confirms them.
In conclusion, Amazon’s success can be largely attributed to its masterful use of cognitive biases. By understanding and leveraging these psychological quirks, Amazon has built an e-commerce empire that influences consumer behavior at every turn. As consumers, being aware of these biases can help us make more rational, informed decisions. As marketers and brand managers, understanding these biases can help create more effective, persuasive strategies. In the end, the power lies in understanding the complex interplay between our minds and the marketplaces we engage with.