These low-cost staples are a significant sales driver, Olsavsky explained. “When customers purchase these types of items from us, they build bigger baskets, shop more frequently, and spend more on Amazon.”
However, Olsavsky also highlighted a key challenge: “It’s much harder to lower prices while still being able to make a profit.” Offering discounted items is easy in theory, but the real challenge is figuring out how to supply them in a way that makes economic sense for the business.