Amazon is all about the cheap stuff right now
“We’re continuing to lower prices and ship even more quickly,” said Amazon CEO Andy Jassy
The e-commerce giant says it’s upping its focus on everyday items in categories such as health, beauty, and groceries, while also accelerating delivery speeds to keep up with increasing consumer demand.
“We’re continuing to lower prices and ship even more quickly,” Amazon CEO Andy Jassy said during the company’s earnings call on Oct. 31. “We can see this resonating with customers, as our unit growth continues to be strong and outpace even our revenue growth.”
Shoppers seem to be flocking to Amazon for essentials, driving a surge in sales that’s growing 50% faster than other product categories, according to Amazon’s CFO Brian Olsavsky.
These low-cost staples are a significant sales driver, Olsavsky explained. “When customers purchase these types of items from us, they build bigger baskets, shop more frequently, and spend more on Amazon.”
However, Olsavsky also highlighted a key challenge: “It’s much harder to lower prices while still being able to make a profit.” Offering discounted items is easy in theory, but the real challenge is figuring out how to supply them in a way that makes economic sense for the business.
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