Amazon Gets Rid of CRaP
Online retailer eliminating products that “Can’t Realize A Profit” like bottled water and snacks.
Dec 18, 2018
Advertisement
SEATTLE – Amazon’s focus has always been the bottom line and in the latest string of changes, the online retail giant is strategically eliminating products from its inventory that are unprofitable. The Wall Street Journal reported that Amazon is changing product packaging and quantities of “CRaP” items or products that “Can’t Realize A Profit.”
These items have three general characteristics: 1) priced at $15 or less and; 2) sold directly by Amazon and 3) are heavy or bulky and costly to ship. At the end of the day, these products like bottled beverages and snack foods aren’t very profitable for the company.
The WSJ reports that major brand executives and company insiders are also urging manufacturers to change packaging to better sell online—and even sell from their own warehouse instead of Amazon’s. One example is that Coca-Cola Co. used to sell a $6.99 six-pack of Smartwater in a default click-and-buy setting. Now, the default setting is changing to a 24-pack for $37.20.
Amazon’s Chief Financial Officer Brian Olsavsky said earlier this year that eliminating CRaP items is “something that we do and work with our vendors on all the time,” adding that it hasn’t caused a change in profitability for the company in 2018. Although, it helps that Amazon works with hundreds of millions of items and a ton of independent sellers.
These items have three general characteristics: 1) priced at $15 or less and; 2) sold directly by Amazon and 3) are heavy or bulky and costly to ship. At the end of the day, these products like bottled beverages and snack foods aren’t very profitable for the company.
The WSJ reports that major brand executives and company insiders are also urging manufacturers to change packaging to better sell online—and even sell from their own warehouse instead of Amazon’s. One example is that Coca-Cola Co. used to sell a $6.99 six-pack of Smartwater in a default click-and-buy setting. Now, the default setting is changing to a 24-pack for $37.20.
Amazon’s Chief Financial Officer Brian Olsavsky said earlier this year that eliminating CRaP items is “something that we do and work with our vendors on all the time,” adding that it hasn’t caused a change in profitability for the company in 2018. Although, it helps that Amazon works with hundreds of millions of items and a ton of independent sellers.
Advertisement
Advertisement
Advertisement
