Again - yes, the reviews can be manipulated and they definitely ARE. But that is not in any way encouraged by Amazon as it doesn't get anything from that. "Sell-out entirely and make a lot of money letting people buy influence" - doesn't apply here
I am not sure about this, but could imagine it being the case that Amazon has done some analysis and found some fake reviews for counterfeit or legal knock-off items to be in their interest.
If the average customer believes that a lot of positive reviews means the quality of the product is high, they are more likely to buy the product. As long as the product is a least decent, they will probably be happy with it. If they are unhappy, they can complain and Amazon will refund them to make them happy (this is probably rare so not a huge impact on profit). Amazon gets to keep lots of the margin on the lower quality knock-off items, instead of the original IP owners. If the item really sucks and they get a lot of returns, Amazon can then use that as a signal to bury it.
If Amazon produced millions of fake reviews themselves, it would be a huge scandal. But if thousands intrepid sellers invest in making thousands of fake reviews, it’s not as much of a scandal for them. Amazon makes a show of fighting the most obvious fake reviews, so people will continue trusting the platform. But are they really using their top talent to fight the fake reviews? I work on a ML / data analysis team and I feel like we could do a much better job at that task than Amazon seems to be doing, and they ought to have more resources than we do.
I’m not accusing Amazon of doing this strategy intentionally, but perhaps there is an understanding that the ROI of engineering talent spent fighting fake reviews and counterfeit items is low or negative.
Well, I suppose you could apply the same to Admins, that would count. I don't know of this happening, but then again I don't think we would have any way to discover it.