Amazon.com Inc. increased its focus toward unprofitable items, urging manufacturers to change their packaging and quantities, The Wall Street Journal reported Dec. 16, citing major brand executives and informed sources.
According to the report, the Seattle-based e-commerce giant has been eliminating unprofitable items, known internally as "Can't Realize a Profit," or CRaP, for months in an effort to cut down costs and improve profitability. CRaP items usually cost $15 or less.
Amazon has been urging manufacturers such as Coca-Cola Co. to improve their packaging to make them sell better online, as well as to add quantities and ship them from their respective warehouses, the report said.
Some companies have either adjusted to Amazon's strategy or are in the process of making changes, the report added. Unilever PLC's Seventh Generation has made new product formats that are more suitable for online sales. Mars Inc.-owned Mars Wrigley Confectionery and breakfast cereals maker Kellogg Co. are said to be taking steps to change their online selling strategies.