Similar Stories to Amazon Said Its Shoppers Keep Choosing Cheap Items – And That's Good For Business on Bing News

Amazon website displayed on a laptop screen.Jakub Porzycki/NurPhoto via Getty ImagesAmazon's customers are buying cheap products, the retailer's top execs said in its Thursday earnings call.Those products are being purchased frequently and in larger amounts, the execs added.Amazon reported a strong third quarter, beating earnings expectations.Amazon customers are buying cheaper products, but at a higher volume."At a time when consumers are being careful about how much they spend, we're continuing to lower prices and ship even more quickly, and we can see this resonating with customers as our unit growth continues to be strong and outpace even our revenue growth," Andy Jassy, Amazon's CEO, said in an earnings call on Thursday.Customers are increasingly using the platform to buy cheaper everyday household items, like "health, beauty, and personal care as well as nonperishable grocery," Brian Olsavsky, Amazon's finance chief, said in the call.While these items "often have a lower average selling price," Olsavsky said that these buying patterns are still a net positive for Amazon."We see that when customers purchase these types of items from us, they build bigger baskets, shop more frequently, and spend more on Amazon," Olsavsky said.Amazon is also dealing with a customer base that's "looking for deals" and "price conscious," Jassy said.He said this consumer behavior "matches up well" with Amazon's Prime membership and sales events.Paid Prime memberships have gone up this quarter, Jassy added, which has been "hugely impactful" for Amazon.Amazon's cost-conscious customer baseAmid the high cost of homeownership, childcare, and retirement, US consumers have been saving more and cutting back on everything from food and travel to home improvement.Wells Fargo carried out a survey from September 5 to October 3, 2023, of more than 3,500 US adults and teenagers.

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