Amazon’s Climate Badge Drives an 8.4% Average Increase in Product Sales

Amazon’s Climate Badge Drives an 8.4% Average Increase in Product Sales

By Andrew Waber
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Amazon Badges
Data Science
Retail Media
Retail Services
Retail Strategy
March 22, 2024 · 3  min

Products that achieved a Climate Pledge Friendly badge on Amazon US saw an 8.4% average increase in weekly sales versus their prior levels. However, these benefits varied considerably across price levels, weekly revenue of a given product, and product category.

As seen above, the effect of the badge on sales was weaker for products generating less than $10,000 in weekly revenue, or for products priced above $73. At lower price ranges, the impact of the badge peaked at 12.2% on average for products priced between $4 – $11. Segmenting by weekly revenue levels, the likely impact is highest for products driving more than $10,000 in weekly sales. In those cases, weekly revenues increased by double digits after securing a Climate Pledge Friendly badge. You can see how the badge appears to users on the SERP in the example below.

Overall, the sales impact of the Climate Pledge Friendly badge is far below the 41.5% weekly sales increase driven by the Best Seller Badge, which even when broken down by category never dropped below 17%. 

When we do a similar category breakdown around the impact of the Climate Pledge Friendly badge, there are striking differences that brands should account for.

The Climate Pledge Friendly badge has the greatest weekly revenue impact across the Patio, Lawn & Garden and Baby Products categories at 77% and 36% respectively. On the other end of the spectrum, there’s actually a negative impact across the Cell Phones & Accessories category, but that’s likely due to the vast majority of those badges being attached to pre-owned or renewed products.

 

Biggest Takeaways for Brands

  • Know if the Climate Pledge Friendly badge makes an outsized sales impact in your category – and plan accordingly
    • Use the directional figures here to roughly estimate whether the revenue impact of the Climate Pledge Friendly badge will likely surpass the cost of getting the necessary accreditations
    • In some cases, a product may already have secured the certifications necessary to attain the badge on Amazon US – adding this to your listing should be an easier process
  • For the products fortunate enough to generate six to seven figures in weekly revenue, the Climate Pledge Friendly badge is likely to be worth the investment
    • Consumers respond relatively positively when these brands in particular attain Climate Pledge Friendly certifications
  • Don’t expect a big sales boost from the Climate Pledge Friendly badge for high-priced products
    • These products would likely be better served by focusing on other means of differentiation (e.g. reviews, product content that speaks to consumer needs, etc.)

 

How Do you Get a Climate Pledge Friendly Badge?

  • Brands can certify their products through two different options: Amazon’s Compact by Design Certification, or via a qualifying third-party organization, like those listed here
  • Then, contact Amazon’s Seller Support to request the Climate Pledge Friendly Application
    • Upload the proper documentation to allow Amazon to review, and apply the badge
  • This badge comes at no additional cost to sellers

 

Methodology

Momentum Commerce analyzed tens of thousands of products that held the ‘Climate Pledge Friendly’ badge on Amazon US between September 2022 and February 2024. Performance comparisons are based on the average weekly sales following the badge appearing alongside the product on the SERP versus the prior weekly average. To provide additional points of comparison, products were broken down based on category, average price, and annualized revenue.