In 2013, Amazon launched a program called AmazonSmile as a way to make it easier for their customers to give back. Under this program, customers who chose to visit an alternative version of the online marketplace — AmazonSmile.com rather than Amazon.com — could designate a charity of their choice. Amazon would then donate a small percentage of their purchases to that charity. This initiative was what we term a “giving-by-proxy” program: Amazon was acting as a proxy for their consumers, making charitable donations in their behalf.
Why Shuttering AmazonSmile Was a Mistake
Research shows that the charitable benefits of such “giving-by-proxy” programs can extend beyond their direct impact.
April 19, 2023
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Summary.
Amazon recently canceled its AmazonSmile program, which allowed customers to designate a small percentage of their purchases on Amazon to a charity of their choice. Amazon made the decision because it felt the program’s impact was spread too thin and didn’t provide a great benefit to any charity. The authors of this article, however, have conducted research shows that “giving-by-proxy” programs have important indirect effects on giving behavior, and that Amazon neglected to take this into account in evaluating the impact of AmazonSmile. The authors also argue that companies can boost the impact of their giving-by-proxy programs by choosing just one high-impact charity (or at most just a few) and simply opting customers in.