Amazon is tired of selling CRaP products

Shawn Knight

TechSpot Staff
Staff member

Major brand executives and people familiar with Amazon’s game plan tell The Wall Street Journal that the company is increasingly taking aim at products with low or non-existent margins. These products – think snacks or beverages – typically carry a low price but are cost-prohibitive to ship due to their bulk or weight.

Internally, they’re known as Can’t Realize a Profit, or CRaP, items – and Amazon wants to eliminate them.

One specific example cited by the WSJ was a six-pack of Smartwater bottled water from Coca-Cola Co. for $6.99. This used to be the default order option for Amazon’s Dash button for the product but in August, the default was changed to a 24-pack that costs $37.20. Furthermore, Coca-Cola will also start shipping these orders directly to consumers from its warehouses, sparing Amazon the expense of having to deal with logistics and shipping on its end.

The e-commerce giant has also reportedly pressured some brands to lower their prices and change packaging. Seventh Generation, a Unilever PLC unit that sells household products, recently created a larger pack of baby wipes and a six-pack of dish soap.

Amazon can get away with changing the rules because of its massive size and influence. Guru Hariharan, chief executive of Boomerang Commerce, said not being on Amazon “is not an option anymore” for big consumer brands.

Image credit: Sundry Photography and nelzajamal via Shutterstock.

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BSim500

TS Evangelist
"One specific example cited by the WSJ was a six-pack of Smartwater bottled water from Coca-Cola Co. for $6.99. This used to be the default order option for Amazon’s Dash button for the product but in August, the default was changed to a 24-pack that costs $37.20."
^ Thus proving the complete uselessness of those ridiculous "Dash" button that auto-buys stuff that can change on a whim and increase in price +400% overnight without being able to see what you're buying...
 

fps4ever

TS Evangelist
"One specific example cited by the WSJ was a six-pack of Smartwater bottled water from Coca-Cola Co. for $6.99. This used to be the default order option for Amazon’s Dash button for the product but in August, the default was changed to a 24-pack that costs $37.20."
^ Thus proving the complete uselessness of those ridiculous "Dash" button that auto-buys stuff that can change on a whim and increase in price +400% overnight without being able to see what you're buying...
It's about as ridiculous as people buying water for $7 a six pack just cuz it's easy to push a button and thinking it's a great deal. I have no problem with Amazon taking advantage of the lazy and or stupid. Buyer beware and all that.
 
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Evernessince

TS Evangelist
"One specific example cited by the WSJ was a six-pack of Smartwater bottled water from Coca-Cola Co. for $6.99. This used to be the default order option for Amazon’s Dash button for the product but in August, the default was changed to a 24-pack that costs $37.20."
^ Thus proving the complete uselessness of those ridiculous "Dash" button that auto-buys stuff that can change on a whim and increase in price +400% overnight without being able to see what you're buying...
Same problem with subscribe and save as well. They'd increase the price by 70% overnight and you'd be stuck with it not even knowing half the time.

This is really just another thing that's going to push customers away.
 

Polycount

TS Evangelist
Staff member
"One specific example cited by the WSJ was a six-pack of Smartwater bottled water from Coca-Cola Co. for $6.99. This used to be the default order option for Amazon’s Dash button for the product but in August, the default was changed to a 24-pack that costs $37.20."
^ Thus proving the complete uselessness of those ridiculous "Dash" button that auto-buys stuff that can change on a whim and increase in price +400% overnight without being able to see what you're buying...
Same problem with subscribe and save as well. They'd increase the price by 70% overnight and you'd be stuck with it not even knowing half the time.

This is really just another thing that's going to push customers away.
Yes, this is why I canceled my subscribe & save. I expect the price to stay the same, but it increases by $6 instead. Screw that.
 
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Evernessince

TS Evangelist
Yes, this is why I canceled my subscribe & save. I expect the price to stay the same, but it increases by $6 instead. Screw that.
Which is weird because the program was designed to save you money. That's at least the only reason I was using it. I ended up cancelling all my subscriptions because I wasn't saving money. For me it was just cheaper to place an order when I needed something and price comparing all online shops. There are a lot of smaller online retailers that sell in a specific niche of items that have very good prices aside from the other big two (Walmart and eBay). It definitely helps to have a browser plugin that automatically prices compares all websites when on a product page.
 

captaincranky

TechSpot Addict
Ah people, why so bitter? That's just flat out uncalled for. Where's your Amazon allegiance, and "team spirit"?

Y'all know that Jeff Bezos isn't anywhere near rich enough. So allow him to maintain his dignity by not selling anything below at least 25% gross profit margin.

And why not throw him another 50 bucks a year for "Prime" service, as a show of empathy and good faith.:poop:
 

Uncle Al

TS Evangelist
Hahahahahaha ..... you get what you sew and they have been sewing the CRaP products for a long, long time. Looks like they are starting the second phase of putting themselves out of business just like every other big catalog business .......
 

btfsttg

TS Rookie
Hahahahahaha ..... you get what you sew and they have been sewing the CRaP products for a long, long time. Looks like they are starting the second phase of putting themselves out of business just like every other big catalog business .......
*sow. But other than that, you're dead on.
 

btfsttg

TS Rookie
Ah people, why so bitter? That's just flat out uncalled for. Where's your Amazon allegiance, and "team spirit"?

Y'all know that Jeff Bezos isn't anywhere near rich enough. So allow him to maintain his dignity by not selling anything below at least 25% gross profit margin.

And why not throw him another 50 bucks a year for "Prime" service, as a show of empathy and good faith.:poop:
I work to game Amazon's system.
 

hk2000

TS Booster
Only thing(s) I buy from Amazon are electronics, and I was hoping this is about the crappy products they try to pass as legitimate products.
 
S

senketsu

Too many counterfeit items on Amazon...wish they'd try to cut that down.