
How consumers view the information waterfall effect behind e-commerce sales data
AI-generated summary
The article was published as the "Double 11" shopping festival approaches, discussing the dilemma consumers face when faced with a large number of similar products on e-commerce platforms, and the impact of sales labels such as "100,000+ sold" on purchasing decisions.
As "Double 11" approaches, I open the shopping app and start searching for the products I want. Many similar products pop up. Which one should I buy? Several of the sales columns say "100,000+ sold". Do you want to select them?
Many times, customers are troubled before placing an order, not only about money, but also about an account that is not written on the price tag: What should I do if the item I bought is not good? Is it troublesome to return or exchange goods? These entanglements are also a frustrating cost before placing an order. The words "100,000+ sold" are precisely aimed at the hidden cost of the customer's decision.
When faced with unfamiliar products, you have to check reviews, compare parameters, and read negative reviews. It takes a lot of energy just to identify whether the information is true or false. When the sales figures are placed in that direction, it is equivalent to telling you: many people have tried it for you. When you buy something that few people have bought before, you run the risk of making a mistake in judgment. And "100,000+" is like a placebo - so many people have bought it, so it's somewhat reliable. Even if something goes wrong, I won't be the only one who suffers. Following the herd here is not blind obedience, but a low-cost risk hedging.
There is a concept behind this: information waterfall. The first person placed an order based on his own judgment; the second person followed suit and placed an order; the third person saw that the first two people had bought and felt more secure; after that, everyone gave up their preference and chose to follow the previous person's choice, and the sales volume snowballed like a snowball. "100,000+" is exactly what the platform and merchants recommend on the shelves to capture your "fear of choosing the wrong thing".
The premise of this logic is that those numbers are true. But the first person to place an order may just be swiping, and the first 100 sales may be from brush orders. Once the number rolls over a certain threshold, few people behind will ask about the source. Once the information waterfall is formed, it will strengthen itself, amplifying the chance and moisture in the first batch of choices. How many real repurchases, how many impulse purchases, and how many machine-generated items are included in “100,000+”? You can’t tell whether they are true or false just by looking at the total number.
The information waterfall will also drown out the opposing voices: those who are too lazy to speak up will not speak up, and the “buzz” you see may not be the truth.
Fortunately, the truth is not invisible. Whether the reviews are concentrated at a few suspicious time points, whether there is an abnormal sudden increase in sales, whether the negative reviews are pushed to the bottom by the "cashback for positive reviews" - these are more telling than the total number.
So when faced with "100,000+", the key is not whether to follow, but when to follow and when not to follow.
Small items with low risk can be generously borrowed. Buy a pack of paper towels, choose a toothpaste, and choose a mobile phone case. If you choose the wrong one, you will suffer less. This type of decision allows sales to screen out obviously unreliable options for you, and the energy saved is far more valuable than the risk.
High-risk items need to be carefully considered. Buying a home appliance that will last for several years, signing up for an expensive course, or choosing a long-term insurance policy will be costly once you are caught up in the information waterfall. At this time, do three things: go upstream to find the source and see that the starting point of "100,000+" is not reliable; turn to the last page of the evaluation, cross-compare with other platforms, and ask people who have used it. One or two solid negative evidences are enough to make you reconsider; your own budget, scenarios, and needs cannot be covered by any information waterfall.
When "100,000+ sold" becomes the easiest recommendation on the shelf, it means that the evaluation system fails to perform the screening function it should perform. Cash back for good reviews, sinking bad reviews, and boosting orders cannot be solved by just being more careful.
So, next time you open a shopping app and see "100,000+ sold", you can take it as a signal, but remember, don't take it as an answer.
Author: Peng Chuanxu

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