Is Amazon becoming a retailer for low-cost consumable products?

Jan 19, 2023

This is at least what we observe by looking at the evolution of price points from 2021 to 2022 (see graph below). The trend is definitely downward, with the majority of sales (60%) below $20 (we see the same thing in Canada). With over 2.5 million sellers in the United States on Amazon, keyword bidding becomes very costly as a percentage of sales. The more fierce the competition is to buy digital real estate, the more profitable Amazon's marketing line of business is. What to do? Think about bundles, various variations of your products, or promoting outside of Amazon, through PPC or other means. There are many options and tactics at your disposal (discount coupons, promo codes, etc.). Do not underestimate the benefits of a short-term "loss lead" promotion to generate traffic to your product and create long-term demand.




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