You may have noticed how the "Frequently returned" badge appears on the PDP and how it impacts overall product performance.
Now, on mobile, Amazon has started displaying similar badges in bold. Some examples include "Customers usually keep it", "Top reviewed for ease of use", and so on. These tags are derived from product reviews.
I believe this will significantly impact customer decision-making. Shoppers may now avoid even clicking on products that carry any kind of negative tag.
As a result, ad spending on negatively tagged products may decrease, but this will directly affect key metrics like CVR, CTR, and sales for those products.
In some cases, products with a negative tag may never recover, potentially falling into the "Non-Recoverable ASINs" bucket.