Amazon is Reportedly Tired of Selling Low Cost Items

Discussion in 'HardForum Tech News' started by AlphaAtlas, Dec 17, 2018.

  1. AlphaAtlas

    AlphaAtlas [H]ard|Gawd Staff Member

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    According to "major brand executives and people familiar with the company's thinking," Amazon is allegedly moving away from selling low cost, low profit items. "CRaP," as they call it, simply isn't worth the effort, and Amazon is either removing the "Can't Realize a Profit" items from their online store or working with suppliers to make them more profitable. For example, Coke bottle listings shifted from $7.00 6-packs to $37.20 24-packs, as Amazon worked out a deal to ship bottles directly from Coca Cola's warehouses. The report mentions that Amazon has the critical mass it needs to get away with this, as the company accounts for the majority of e-commerce, and keeping merchandise off Amazon "is not an option anymore."

    Amazon is trying to boost profitability in its core retail business after years of focusing on growth, according to the people. The company's profit has risen sharply in the past couple of years, helping its stock price soar, although its market value has fallen again recently. But most of that profitability has stemmed from its growing cloud business and advertising unit. Brand executives privately say Amazon’s push for profitability can be a double-edged sword. Amazon has pressured them to lower prices and change packaging, both of which can be costly. And eliminating or changing what they sell on Amazon can hurt sales. Some executives, however, say it can help both companies.
     
  2. Darunion

    Darunion 2[H]4U

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    Nothing is too big to fail. Alibaba and rakutan and jet are just going to get more stuff to sell.
     
  3. GNUse_the_force

    GNUse_the_force Limp Gawd

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    Most the stuff outside of electronic items on Amazon (and most of that too) is complete CRaP. Got tired of returning faulty or just plain low quality items on Amazon and only buy verified manufacturer goods now. Shopping on Amazon feels like the worlds largest car boot sale.
     
    Last edited: Dec 17, 2018
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  4. JavaLava

    JavaLava [H]Lite

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    So Prime Day might have something worth buying next year?!?!
     
  5. nightfly

    nightfly 2[H]4U

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    Wonderful. Bezos made billions by creating a very easy to use shopping site, and because that's not enough, he's going to ruin it? What a dick move. I guess he wants to join the asshole club with Gates. Not that amazon is perfect, but it's been pretty good. The tiny 'add on' items that were difficult to find pretty much anywhere, were one of the great things about it.
     
  6. Lifelite

    Lifelite 2[H]4U

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    Welp just means more people are going to turn to Walmart. Low profit is better than no profit. I'm very close to dropping prime, as they can barely manage to get 2 day shipping right anymore.
     
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  7. Darunion

    Darunion 2[H]4U

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    PRIME SHIPPING
    (4-5 day)

    Always in that little text or once you are almost at submit order does it show you it will show up in 2 weeks.
     
  8. RobCalleg

    RobCalleg Limp Gawd

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    What’s with those coke prices?
     
  9. OFaceSIG

    OFaceSIG [H]ard|Gawd

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    Where do you live? I live in a northern suburb of Dallas, surrounded by fulfillment centers. I sometimes get two day items in one day. I agree that Amazon isn't nearly as amazing as it used to be, but I am no where near leaving prime. Their TV package alone is nearly worth it.
     
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  10. Viper16

    Viper16 [H]ard|Gawd

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    I haven't had one issue with Amazon, although I don't typically buy from their third party shippers, and try to have it fulfilled from Amazon.
     
  11. oROEchimaru

    oROEchimaru [H]ardness Supreme

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    they are not tired of selling fake knockoffs and fake review items then that are profitable. i am tired of having that as 90% of the selection.
     
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  12. Lifelite

    Lifelite 2[H]4U

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    Central Arkansas.

    Walmart is much more present here, and a lot of the time can get you something same day.

    Plus, it's not just the shipping speed. Their packing quality has really sucked lately. 2 day shipping doesn't mean shit if your item arrives broken, and this year alone I've sent back 6 items that were damaged because they threw something in a box with MAYBE some packing bubbles on one side (definitely not adequate)
     
  13. El Derpo

    El Derpo Limp Gawd

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    If they get rid of Prime benefits by forcing me to buy a minimum cost of items, I’ll happily shop elsewhere. I haven’t had a personal issue with fake items, but they should really focus on that.
     
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  14. Glock24

    Glock24 [H]Lite

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    When I read they won't sell crap anymore I imagined crappy chinese knockoffs, not a six-pack of coke.
     
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  15. AlphaAtlas

    AlphaAtlas [H]ard|Gawd Staff Member

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    Bingo. Seems like taking a tiny hit on low-cost items would be worth shutting out competitors (like Walmart) from a big niche. It's not like Amazon is short on the infrastructure it needs.
     
  16. LightsOut41

    LightsOut41 Limp Gawd

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    Yep, I recently ordered some Gillette blades that were sold and shipped by "Amazon.com". They were horrible fakes.
     
  17. whatevs

    whatevs Limp Gawd

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    As expected, they didnt say they wont stop selling crap and updating their search so you can find product you want(Newegg style filters). Instead they will just only sell more expensive crap.
     
  18. El Derpo

    El Derpo Limp Gawd

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    At least their return/exchange policy is good. That’s still a frustrating waste of time.
     
  19. EODetroit

    EODetroit [H]ard|Gawd

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    Ahh, the Wal-Mart strategy.
     
  20. Dead Parrot

    Dead Parrot 2[H]4U

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    Don't see how Amazon was making any money on shipping $7 six packs of drink via a 3rd party shipper. The cost of shipping was probably higher then the sales price of the drink. This is an area where Walmart has a huge advantage as long as customers will accept ship to store as a viable alternative. Walmart already has the infrastructure in place to ship a 6 pack of drink to a specific store as part of normal operations.
     
  21. U-238

    U-238 Limp Gawd

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    Expect Walmart to follow suit. Commerce has been in a race to the bottom for years and they may finally have hit that bottom (or are at least getting close to it). If Walmart can turn a bit of extra profit while still remaining "competitive" with Amazon they will definitely do it.
     
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  22. whatevs

    whatevs Limp Gawd

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    Costco, BJ,s and Sam's Club would be that niche. Not really Walmart.

    Also, dont know when last time you shopped at Walmart, but they don't generally sell cheapest. And even then, they have spot pricing on everything, prices of milk/cereal, you name it, changes on weekly basis. And different stores, only 15+ minutes apart, but in different neighborhoods, have massively different prices for same "staples"...

    Walmart already one upped Amazon.

    Amazon's problem is that they just dont give a shit about what they sell. They only see revenue/profit numbers.
     
  23. Loop242

    Loop242 [H]Lite

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    I guess you can always go to wish.com for your CRaP needs.
     
  24. nutzo

    nutzo [H]ardness Supreme

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    Guess I'll have to shop elsewhere for USB cables, etc.
     
  25. OnceOver

    OnceOver n00b

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    So you destroy the competition by selling everything fast and cheap... then decide you don't want to sell low cost items fast and cheap because now you're better than that? OK cool.
     
  26. NickJames

    NickJames [H]ardness Supreme

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    You're walking a tight rope there Amazon.
     
  27. katanaD

    katanaD [H]ard|Gawd

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    i have wondered why they were even bothering with certain "grocery" store items, like coke. where its really cheap and probably costs more in shipping then the product itself.
     
  28. 5150Joker

    5150Joker 2[H]4U

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    Monoprice says hello.
     
  29. Twisted Kidney

    Twisted Kidney 2[H]4U

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    Amazon is about dominance, not nickels and dimes. It would be a massive change in policy for Amazon to start penny pinching in its retail revision, I have my doubts about the article.
     
  30. TordanGow

    TordanGow [H]ard|Gawd

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    Wait a minute, are you telling me you don't want a steep discount on devices that spy on you?!? Think of the savings you are missing out on!
     
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  31. El Derpo

    El Derpo Limp Gawd

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    I bought a hoodie from their once and they said to buy two sizes higher than you would normally buy. So I ordered an XL and it wouldn’t even fit my 8-year-old nephew. Looked like a cheap hoodie for a doll.
     
  32. Danny Dawg

    Danny Dawg [H]ard|Gawd

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    What Amazon- being a junk drawer supplier does not work? Where I come from, if you take the meat, you take the potatoes as well.
     
  33. PantherBlitz

    PantherBlitz Limp Gawd

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    Because they don't. Amazon most likely is losing money on items like these. It would be irresponsible to their shareholders to not trim the CRaP.
    Not everything under the sun is suitable for online purchases.
     
  34. Darunion

    Darunion 2[H]4U

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    But these loss leaders are useful as it gets more customers purchasing through you. Amazon ditches these and someone else will pick them up and once half of your stuff is bought somewhere else, you will migrate.

    I don't see this working out in the long term, you could start to hemorrhage customers to another service and have to do some kind of incentive to gain them back.

    Now as far as the low quality and fake items on their store, that is another topic of discussion.
     
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  35. Grimlaking

    Grimlaking 2[H]4U

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    What about all the grocery items with the grocery store chain they just purchased. Are they going to back out of the grocery delivery. A Pack of gum is a low cost low profit item. Perhaps relegate the low cost items to cheap add on items?
     
  36. Absalom

    Absalom Gawd

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    Watch Amazon solve this by making everything under $10 an Add On Item.

    Which basically means spend $20 or stop wasting our time.
     
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  37. OFaceSIG

    OFaceSIG [H]ard|Gawd

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    I can totally see this. I have a Walmart locally like many folks in the center of the country and I go there for many items that are similarly priced to Amazon and I don't have to wait two days. Anything over the counter pharmcy wise and common for sure, I go to Walmart first usually.

    In cases like this Amazon is merely a portal conducting the sale for them. Amazon is getting a few points off the transaction and that's it. They're merely acting like a broker. They are making money for pre-existing website. It's genius really.

    Yup... I always check monoprice first if all I'm ordering is cables. It's still very hard to beat monoprice's quality and price for run of the mill cables.
     
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  38. ConnerLeo

    ConnerLeo n00b

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    Market share was part of the Amazon growth formula. Now that they have some breathing room in this space, they are going to try to push other boundaries. Turbo capitalism at its worst.
     
  39. mt2e

    mt2e Limp Gawd

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    Today is the day somebody realized they could start a company that will one day compete with Amazon.
     
  40. Mega6

    Mega6 [H]ard|Gawd

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    Tariffs are making Chinese junk too expensive now i guess.
     
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