Amazon has taken millions of dollars in losses for certain products amid a pricing war against other retailers like Walmart and Target. While the online retailer often achieves lower prices than its competitors, this practice has grown unsustainable, according to the report.
To offset rising shipping costs and protect its bottom line, the online retailer plans to increase transportation fees for suppliers of heavy or bulky products that are costly to ship, such as beverages or diapers.
Amazon already limits shipments of inexpensive personal care items through its “add-on” initiative, which only allows customers to purchase these items if combined with a larger order of at least $25. Now, Amazon will expand this “add-on” designation to most personal care items sold on the site for less than $7 to further cut shipping costs, one source told Bloomberg.
Amazon declined the publication’s request for comment.
More articles on supply chain:
Walgreens to pay $5.5M to resolve allegations of overcharging for prescription drugs
Trump: Stay tuned for federal action on high drug price
Survey: Top healthcare supply chain priorities in 2018
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.