Amazon's Strategy to Offer More Essential Products Shields It from Competition
Amazon's decision to offer more essential products is taking a toll on its average selling prices, but provides a safeguard against competitors like Temu and Shein, who offer unbeatable prices on goods shipped from China.
The e-commerce giant has seen its market share in the clothing sector erode, as Shein and Temu rapidly expand globally, offering $12 dresses and $10 gadgets. However, Amazon is maintaining its position by offering a range of everyday consumer products.
After announcing third-quarter revenue and profits that exceeded Wall Street expectations, the company revealed yesterday that customers are shopping more frequently on Amazon, adding more low-priced items to their carts with each checkout.
In August, Amazon CEO Andy Jassy highlighted that average selling prices were decreasing due to customers shifting to cheaper items and increasing their purchases of essential products.
