Amazon launches “$10 or Less” store
Bringing the bargain bin to its website, Amazon has quietly launched a “$10 & Under with Free Shipping” page.
The microsite, marked by a “$10 OR LESS” click-through prominently placed on Amazon.com’s home page, displays a mishmash of items across seven categories: Women’s, Men’s, Electronics, Gifts, Home Decor, Household and Watches as well as an All section. Around the start off the year, the site featured a “Hello 2018!” section of New Year’s-themed items.
Outside of the categories, the section can’t be assorted by item, price or other parameters. About sixty percent of the items appear to be priced toward the higher end the price range ($7 to $10) and many are lighter items, such as shirts, beanies, scarves and sunglasses, favorable to shipping. But many items, including a $2.99 iPhone 6s Case and a $2.78 Watermelon coin purse, offer little margin to cover the free shipping costs that come without Prime membership.
The site can also be found under “All Programs” in the Amazon’s app main navigation.
TechCrunch, which first noticed the new site, believes the “$10 OR LESS” microsite addresses the success of sites like Wish.com, which offers cheaply-manufactured versions of popular brand name products straight from China. Wish.com ranked as the most downloaded shopping app in the U.S. in 2017. Hollar.com is a competitor.
Last June, Amazon began offering Prime memberships for $5.99 per month (down from $10.99) for those qualifying for food stamps. Some see “$10 or Less” as a way to reach low-income consumers without Prime. Speaking to Yahoo, Brittain Ladd, a supply chain consultant who worked on the expansion of AmazonFresh, believes that with its budget-driven treasure hunt experience, “$10 or Less” is targeting dollar stores.
Dollar stores have been labeled “Amazon proof” because margins on inexpensive items can’t cover the delivery costs. But Mr. Ladd believes Amazon’s extensive distribution network can keep costs down. He said, “Even if Amazon is shipping an item worth only $5, Amazon can ship the product cost-effectively because the package doesn’t have to travel very far.”
- $10 & Under With Free Shipping – Amazon
- Amazon takes on Wish with an “Under $10” selection of products that ship for free – TechCrunch
- Amazon’s new ‘$10 and Under with free shipping’ section takes on budget shopping app Wish – The Verge
- Amazon is going after dollar stores – Yahoo Finance
- Will an online dollar store work? – RetailWire
DISCUSSION QUESTIONS: Does a “$10 or Less” microsite fit into Amazon’s strategy? Would it be a feasible business model for anyone other than Amazon? Should dollar stores feel threatened by the move?