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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.
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.