Amazon puts squeeze on suppliers to offset high shipping costs

Amazon is shifting costs onto suppliers and reducing the amount of small, inexpensive items consumers can buy off its site, unnamed sources told Bloomberg.

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.

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