They call it “CRaP” but it has a different meaning than what you are probably thinking. It’s an acronym that stands for products that “Can’t Realize a Profit.” That’s what some folks at Amazon have dubbed products they are offering that sell for less than what it costs to buy and deliver. Now, it appears Amazon wants to stop selling CRaP.
According to a story in the Wall Street Journal, items sold directly by Amazon that are heavy or bulky, such as bottled beverages and some snack foods, are expensive to ship and have very thin or even nonexistent margins.
Amazon has become a go-to online destination to buy just about anything you needed. The company is finding out there’s a cost to that. Amazon is now discontinuing some items that can’t be sold for a profit.
If you are a vendor working with Amazon, this means your products might not be sold by the online giant anymore. You might have to repackage them and offer a higher price point, or you might be forced to ship it directly rather than having Amazon provide fulfillment. That means you will have to bear the cost of shipping and order fulfillment.
By pushing the costs back to third-parties that do business on Amazon, it could lead to higher prices for some consumer goods. Even though more than half of all sales on the e-commerce platform come from third-party companies, Amazon has the clout to dictate the terms.
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