Bad news bulk buyers. Amazon has woke to the realization shipping cases of water, and other bulk goods is expensive. Codenamed CRaP (Can’t Realize a Profit), these are products squeezing the razor-thin margins at Amazon. The company is on a mission to cut costs and maximize profits.

Amazon initially changed the way bulk items could be bought. Take a six pack of SmartWater from Coca-Cola. It prices out at $6.99 with free, two-day shipping. Considering the weight of six bottles of water, Amazon was eating the shipping cost on a product that has an Amazon Dash button. Company policy shifted to where customers could only order a case of 24 at $37.20. So much for the idea Dash buttons would reduce bulk buying.

The shift hasn’t panned out, and now, according to the Wall Street Journal, Amazon is asking a number of brands to ship their products. The paper says only Amazon could get by with such a request. Or the companies could tell Amazon no. These are not mom-and-pop brands. And note its a request and not a demand because Amazon knows it can’t force the issue. Especially with the resurgent Walmart ecommerce platform waiting to pounce.

Other cost-cutting initiatives include the Prime Pantry, where customers are required to fill a ‘box’ with goods before it ships. Or, they could go to their local Whole Foods and grab what they need.

What the measures accomplish is render the Dash buttons pointless. The entire focus centered around no need to bulk buy toilet paper, detergent, etc. You’d hit the button and in comes a box with your goods. Now? I’m guessing Charmin will have to ship the mega pack? Yeah, not buying companies will suddenly become B2C fulfillment centers.

The writing is on the wall for those who use Amazon for everything. Expect your bulky items to lose their ‘Prime’ status now that Amazon figured out shipping water across the country is pretty damn expensive. There’s always Costco.

Gear. TV. Movies. Lifestyle. Photography. Yeah, I’m the type who sees a shiny object and is immediately captivated. Wait... There’s another. You can reach me at marcus@newsledge.com

You may also like


Comments are closed.