Seth Godin argues Amazon’s booming search ad business acts like a hidden tax on sellers and worsens shopping results

Seth Godin says Amazon’s search ads generate nearly a billion dollars in weekly profit by forcing merchants and publishers to pay for visibility. He argues the ads often distort results, making shoppers less likely to see the best-reviewed or best-priced products unless sellers buy placement to defend their rankings.

The critique highlights how retail media can shift from discovery tool to tollbooth when dominant marketplaces control both search results and ad inventory. As Amazon’s ad business grows, sellers may face rising customer acquisition costs while consumers get a less neutral shopping experience.