Efficiency and profitability are two big major drivers of any businesses. Jeff Bezos-led e-commerce marketplace Amazon is no different on that count.
The US-based e-comm marketplace has now been asking sellers on its platform to increase the value of goods being sold. The suggestion is to bundle many products and sold them to consumers at a higher net price, which is usually lower than MRP.
It will help e-tailer gain higher margin and mitigate the cost of packing and delivery.
Several sellers including FMCG firms have been asked do the same. One of the largest FMCG companies confirms the development to TOI report saying that it has been asked to bundle products with minimum “net price to consumer” cap Rs 200 or higher.
The move is also reported to be for Amazon Retail India (ARIPL) Pantry services beyond pin codes it serves.
Incorporated two years ago, ARIPL had received a license to retail food products through an inventory-led model. The subsidiary of Amazon is engaged in procuring and selling grocery items like packaged foods, cooking and household stock, personal care items, and others.
It buys goods from retailers and distributors, then sells it under the Amazon Pantry storefront.
However, Amazon said that it is offering better value to customers through bundled packs. This will be interesting and not be easy for sellers, who have to restructure their backends in accordance with the minimum cap on products.