Paper Number
ICIS2025-1523
Paper Type
Complete
Abstract
Consumers are increasingly purchasing socially responsible products online, yet understanding how digital platforms can lower search costs for these items is limited. This paper examines the impact of Amazon's Climate Pledge Friendly program, which certifies sustainable products and enhances their visibility with badges. We analyze beauty products affected by this program, comparing sales of certified versus non-certified items before and after certification using a differences-in-differences design. Our findings indicate that Amazon's certification positively influences sales and complements other reputation mechanisms like reviews and ratings, with products receiving more reviews seeing greater sales increases post-certification. Additionally, certification significantly boosts sales for small businesses. This suggests that while existing review systems address some customer preferences, platform certification emphasizing social responsibility can further support high-quality products from small businesses, promoting equitable growth in online marketplaces.
Recommended Citation
Lim, Hyungsoo, "How Platform Certification Shapes Conscious Online Consumption: Evidence from Amazon Climate Pledge Program" (2025). ICIS 2025 Proceedings. 7.
https://aisel.aisnet.org/icis2025/sustain/sustain/7
How Platform Certification Shapes Conscious Online Consumption: Evidence from Amazon Climate Pledge Program
Consumers are increasingly purchasing socially responsible products online, yet understanding how digital platforms can lower search costs for these items is limited. This paper examines the impact of Amazon's Climate Pledge Friendly program, which certifies sustainable products and enhances their visibility with badges. We analyze beauty products affected by this program, comparing sales of certified versus non-certified items before and after certification using a differences-in-differences design. Our findings indicate that Amazon's certification positively influences sales and complements other reputation mechanisms like reviews and ratings, with products receiving more reviews seeing greater sales increases post-certification. Additionally, certification significantly boosts sales for small businesses. This suggests that while existing review systems address some customer preferences, platform certification emphasizing social responsibility can further support high-quality products from small businesses, promoting equitable growth in online marketplaces.
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Comments
04-Sustainability