#Amazon doesn't make any money by selling a single Grocery item. Low price point
By Martin Heubel ยท May 16, 2026 ยท Curated by George's Blog
#Amazon doesn't make any money by selling a single Grocery item. Low price points and 30-minute delivery options make this a negative margin business.
Traditional methods of basket building are largely rejected by the online retailer. And a recent study from Consumer Intelligence Research Partners, LLC found that 2 in 3 orders only contain 1-2 items at checkout.
But that's exactly the point.
๐ซ ๐๐บ๐ฎ๐๐ผ๐ป ๐ฑ๐ผ๐ฒ๐๐ป'๐ ๐ต๐ฎ๐๐ฒ ๐๐ผ ๐ฟ๐๐ป ๐ฎ ๐ฝ๐ฟ๐ผ๐ณ๐ถ๐๐ฎ๐ฏ๐น๐ฒ ๐๐ฟ๐ผ๐ฐ๐ฒ๐ฟ๐ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐.
Its leadership knows that customers will return to purchase across adjacent categories with higher margins, increasing the lifetime value of (Prime) customers.
However, that doesn't mean 1P suppliers aren't being asked to pay their dues.
In my work with FMCG brands, clients are often asked to fund margin support agreements, designed to stabilise and offset some of the negative margin impact Amazon incurs.
Brands mostly comply, because Amazon is one of the few relevant retailers that drives meaningful growth on an already large online revenue base.
And that just may be Amazon's biggest strength to exploit in 2026.
Read my full commentary: https://lnkd.in/etDQGpvt
#amazonnews #amazonstrategy