Amazon’s Invite-Only Orders Weed Out 'Bad Actors'

Amazon’s latest move to preserve the integrity of its notoriously good customer experience is an invite-only program for high-demand products like video game consoles. The intent is to prevent inventory shortages and price gouging—and analysts say the ecommerce giant is well-positioned to do just that despite the never-ending battle against bots and resellers. Invite-Only According to Amazon, shoppers can request invitations to purchase “a high-demand, low supply item” by clicking the Request Invitation tab on the product detail page. If an invitation to purchase is granted, the customer will receive an email with directions on how to complete the transaction. But they can’t dilly-dally—a timer will count down how long they have to convert. If the timer runs out, they will have to submit a new request. Amazon’s IMDb TV AVOD Streamer Rebrands as Amazon Freevee If they don’t receive an invite, the request “will be considered for selection when additional inventory becomes available,” Amazon said. Only one invitation can be requested per item, but shoppers can ask for invitations for multiple invite-only products at the same time. The number of invitations distributed is based on how many items are in stock. The program is starting in the U.S. with the PlayStation 5 and Xbox Series X video game consoles sold and fulfilled by Amazon. Brad Jashinsky, director analyst at Gartner, noted scalpers have been buying up the consoles using bots and reselling them far above MSRP. “That’s been a frequent issue at Amazon and other retailers since both consoles launched in 2020,” Jashinky said. “The issue has frustrated consumers and Microsoft/Sony who want the consoles to go to players that will use them right away to purchase additional games.” That’s because the manufacturers make more money from selling games than from the consoles, he added. In a statement, Llew Mason, vp of consumer engagement at Amazon, said the platform wants “a shopping experience where customers can purchase the items they’re interested in without having to worry about bad actors buying and reselling them at a much higher price.” UX The $100,000 question is whether the program will work. Jashinsky noted this issue has plagued retailers and event ticket sellers like Live Nation for years. “Amazon has a great opportunity to overcome these challenges since the company has so much ecommerce purchase data and high frequency customers,” he said. “The company can look at purchase behavior and how long a customer has had an Amazon account to understand whether the account is likely to be a bot.” Zach Weinberg, vp of ecommerce at performance marketing network Reprise Digital, agreed it’s a tactic to help manage inventory on hot, new items—as well as to set customer expectations. “Rather than hinder customer experience, I think it improves it because it helps to manage expectations,” he said. “If a consumer applies and gets invited, they know that's a guarantee of a product—a great consumer experience—as opposed to a consumer making a purchase, finding out there wasn’t enough inventory and having their order cancelled.” In fact, Jashinsky said the only customers likely to be upset are the scalpers. “This will provide all other customers a fair chance at being able to purchase one of these products,” he added. “I expect Amazon will only offer this option for a limited time until these products are back in stock on a regular basis.” A spokesperson said Amazon hopes to eventually expand the program to other products and countries.

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Amazon’s Invite-Only Orders Seek to Weed Out 'Bad Actors'

Analysts are optimistic about the new program

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