Amazon wants shoppers to buy less
Increasing order volume and operational complications may be forcing Amazon to move away from features and promotions that drive sales.
It may take more than two months for Amazon to fulfill orders in all categories, instead of in one or two days, as it did prior to the pandemic, which likely led it to make temporary changes to its platform, reports Business Insider.
- Amazon has removed features that recommend products to consumers, which could lead shoppers to order fewer items.
- Amazon reportedly won’t run promotions for Mother’s Day and Father’s Day, in addition to postponing Prime Day, which could avoid further increases to its order volume.
While these efforts will surely cut into Amazon’s sales, they may help it get its operations in order faster, which could help it avoid suspending its business in more markets. Cutting down order volume may allow Amazon to focus more resources on setting up its operations so it can handle all essential and nonessential orders it receives in a timely manner, and do so safely.
More Amazon news
Major shutdowns in China due to new COVID outbreaks
Multiple companies in Zhejiang province have suspended operations due to COVID-19 outbreak, halting production of goods from batteries and clothing to textile dyes and plastics. Zhejiang is one of China's biggest and busiest manufacturing hubs. The local government...
Amazon is using sellers as a cash cow
Amazon collects a third of seller revenue A new study claims that Amazon makes far more from fees on its Marketplace platform than even the cash cow known as AWS, reports TechCrunch. According to the report by the Institute for Local Self-Reliance, sellers now give...
Inflation spreads to e-commerce
A recent report by Adobe shows that e-commerce is experiencing many of the same pricing pressures in the broader economy due to supply chain problems, higher shipping and labor costs. Online prices rose 1.9% in October from a year earlier and 0.9% from the previous...
