If you’re selling in Consumer Electronics categories on Amazon, listen up: Amazo
By Martin Heubel · October 29, 2026 · Curated by George's Blog
If you’re selling in Consumer Electronics categories on Amazon, listen up:
Amazon’s own first-party device business is projected to lose a staggering $612 million in 2026, more than 174 million more than the originally projected $438 million gross loss.
According to internal documents obtained by Business Insider, rising memory costs were "putting pressure" on the business's profitability, forcing "difficult trade-offs" among sales volumes, average selling prices, and gross profit.
Welcome to the club, Amazon. Your own 1P suppliers have been facing these challenges for years.
So what does this mean for executives of manufacturer brands?
👉 Execute your cost price increases
👉 Allocate stock to other retailers
👉 Don’t sing your margin away
Chip and memory shortages are just the tip of the iceberg:
Rising input costs don’t justify additional margin concessions in 2027. They require Amazon to support you in bringing your cost-to-serve down.
Bring on the 2027 AVN cycle!