Amazon reportedly wants to curb selling 'CRaP' items it can't profit on, like bottled water and snacks
- Amazon is rethinking its strategy around items it sells that it refers to internally as "CRaP", which stands for "Can't realize a profit," according to a report by the Wall Street Journal.
- These items include things like bottles of water, paper towels, and snack foods, which are usually sold for less than $15 and are heavy or bulky, leading to slim margins or worse.
- It's now trying to focus on more profitable items instead, and wants to get rid of its CRaP items.
Amazon wants customers to buy less "CRaP" online.
The e-commerce giant is rethinking its strategy around some items it sells which it calls internally "Can't realize a profit" - or "CRaP" for short, according to a new report from the Wall Street Journal.Amazon reportedly does not like selling these items, which involve commonly purchased things like bottled water, soda, and snack foods, because they're usually sold for less than $15 and are expensive to ship due to being heavy or bulky. That means margins are much worse than other items the website sells.
Amazon is now eliminating some items and working with its manufacturers or vendors to repackage some items so they're more profitable to sell online, the Journal says. In some cases, like with Coca-Cola products, Amazon will work out a deal where it ships directly from Coke, instead of an Amazon fulfillment center.
Amazon is doing this now, according to the Journal, because it can rely on third-party merchants to pick up the slack for selection, which customers now expect from the "everything store." Sales from third parties have grown to account for more than half of all sales on Amazon.com.
The move is another instance of Amazon throwing its weight around on vendors because of its dominant position online. Amazon has grown to account for almost half of online commerce, according to analysts, and many consumer packaged goods brands don't have a choice of whether or not to sell on its website anymore. In fact, nearly half of all online searches start on Amazon, according to Emarketer.
Amazon did not immediately respond to Business Insider's request for comment.