Amazon says it is working to lower the cost of serving customers so it can offer more low-priced products while maintaining fast delivery. The plan combines automation and robotics with regionalized inventory, better product placement, same-day delivery and fewer separate packages. Those measures are intended to make lower-priced goods economically viable on Amazon; the available statements do not establish that they have caused prices across the site to fall.
Why Amazon says it is focusing on costs
In coverage of Amazon’s second-quarter 2024 results, GeekWire reported that CEO Andy Jassy framed lower operating costs as a way to support a wider range of lower-average-selling-price products. Amazon was responding to competition from low-priced sellers such as Temu and Shein, whose goods can ship directly from suppliers in China, often with longer delivery times. Amazon’s challenge is to make low prices available alongside the speed and convenience customers expect from its own network. GeekWire’s August 1, 2024 report describes this as an operating strategy, not a promise of across-the-board price cuts.
| # | Preview | Product | Price | |
|---|---|---|---|---|
| 1 |
|
Amazon eGift Card - Amazon Logo | $50.00 | Buy on Amazon |
| 2 |
|
Amazon eGift Card - Happy Birthday | $50.00 | Buy on Amazon |
| 3 |
|
Amazon eGift Card - Cherry Blossoms | $50.00 | Buy on Amazon |
| 4 |
|
Amazon Physical Gift Card in a Mini Envelope - Amazon Smile | $25.00 | Buy on Amazon |
| 5 |
|
Amazon Physical Gift Card in a Gift Box - Better than Gold - Black | $50.00 | Buy on Amazon |
The distinction matters for household budgets: lowering the cost of fulfillment can give a retailer more room to stock and sell inexpensive items, but it does not automatically mean every item gets cheaper. Jassy said the work would require sustained execution, process improvements and technology innovation, adding, “These cost improvements won’t happen in one quarter or one fell swoop.”
How Amazon aims to lower its cost to serve
Amazon’s stated approach is to reduce avoidable handling and transportation while getting orders to customers quickly. In a May 2026 account of Jassy’s CNBC interview, the company again emphasized bringing inventory closer to customers and combining items in existing shipments.
Recommended Free Tools
#1 Best Overall
- Amazon.com Gift Cards never expire and carry no fees.
- Multiple gift card designs and denominations to choose from.
- Redeemable towards millions of items store-wide at Amazon.com or certain affiliated websites.
- Available for immediate delivery. Gift cards sent by email can be scheduled up to a year in advance.
- No returns and no refunds on Gift Cards.
- Automation and robotics: Amazon said it planned to use more automation and robotics in its operations. The 2024 report did not quantify expected savings or give a deployment timetable.
- Regionalized inventory: Storing products closer to customers can shorten their journey and reduce unnecessary movement between facilities. Amazon describes this as a way to lower the cost of serving customers.
- Improved inventory placement: Positioning products where they are more likely to be needed can reduce transfers after they reach fulfillment centers and help make delivery faster.
- Same-day delivery and shipment consolidation: Amazon aimed to expand its same-day network and put more units in each box. The company says customers can add items to an existing shipment, which can avoid separate packages and delivery costs.
These levers work together: inventory near a customer can be delivered sooner, while fewer transfers and consolidated packages can reduce handling and shipping effort. The sources do not quantify how much any one measure saves or how those savings translate into the price of a particular product.
What Amazon reported about consumer shopping in 2024
Amazon CFO Brian Olsavsky told analysts, as reported by GeekWire after the company’s Q2 2024 results, that average selling prices were declining amid cautious spending. He also said unit sales growth remained strong and that faster shipping was prompting more purchases of everyday essentials. These were executives’ observations about Amazon’s business at that time, not findings from a named consumer survey, and they do not establish a current, population-wide shift in shopping behavior.
Rank #2
- Amazon.com Gift Cards never expire and carry no fees.
- Multiple gift card designs and denominations to choose from.
- Redeemable towards millions of items store-wide at Amazon.com or certain affiliated websites.
- Available for immediate delivery. Gift cards sent by email can be scheduled up to a year in advance.
- No returns and no refunds on Gift Cards.
For shoppers, the reported pattern suggests people may be buying more units while spending cautiously, with price and delivery convenience both relevant. It does not show that consumers broadly abandoned higher-priced goods or that Amazon’s cost initiatives caused the reported sales mix.
What Amazon’s 2026 updates show—and do not show
Amazon continued to describe cost-to-serve and lower-priced selection as priorities in 2026. On its July 30, 2026 Q2 earnings call, the company said its U.S. Amazon Haul selection had grown nearly 20-fold since launch and included more than six million items priced under $10. Amazon also said its everyday prices meet or beat competitors and that more than 80% of Prime Day deals were at its lowest price of the year. These are Amazon’s own claims; the Prime Day figure refers to deals, not all products on the site, and neither statement is an independent price audit. Amazon’s Q2 2026 earnings-call transcript provides the company’s account.
Windows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallCrashes, No Sound, or Screen Glitches?
Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteRank #3
- Amazon.com Gift Cards do not expire and carry no fees.
- Multiple gift card designs and denominations to choose from.
- Redeemable towards millions of items store-wide at Amazon.com or certain affiliated websites.
- Available for immediate delivery. Gift cards sent by email can be scheduled up to a year in advance.
- No returns and no refunds on Gift Cards.
The company’s July 2026 filing and earnings release also identify customer demand and spending, inflation, tariffs, competition, and fulfillment and delivery optimization among business risks. Amazon’s Q2 2026 guidance included investment in quick commerce and sharper prices in its international stores business. Cost reduction therefore sits alongside continued investment and uncertainty; it is not evidence of a guaranteed or uniform price outcome. Amazon’s Q2 2026 filing and earnings release set out those risks and plans.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to compare Amazon with low-price competitors
The 2024 competitive framing involves three considerations, but the available reporting offers no matched product basket or delivery-time study to determine a measured winner.
Rank #4
- Gift Card is redeemable towards millions of items storewide at Amazon.com
- Gift Card has no fees and no expiration date
- Gift Card is affixed inside a mini envelope
- Scan and redeem any Gift Card with a mobile or tablet device via the Amazon App
- Gift amount may not be printed on Gift Cards
| Consideration | Amazon’s stated approach | Temu and Shein in the 2024 report |
|---|---|---|
| Price and assortment | Make a broader range of lower-priced products economically supportable by reducing the cost to serve. | Identified as sources of low-priced goods. |
| Delivery | Expand same-day service and position inventory closer to customers to support faster delivery. | Goods shipped directly from suppliers in China, with longer delivery times described in the report. |
| Cost to serve | Use automation, regionalization, better placement and package consolidation to improve efficiency. | Comparable cost data was not stated in the report. |
For a household comparing offers, the practical choice is not price alone: check the delivered price, the expected arrival time and whether the item meets the need. Amazon’s stated aim is to compete on a combination of lower prices, breadth and speed, but the cited sources do not provide enough comparable data to say which retailer is cheaper overall.
Quick Recap
Best Value
- Gift Card is redeemable towards millions of items storewide at Amazon.com
- Gift Card has no fees and no expiration date
- Gift Card is nested inside a specialty gift box
- Free One-Day Shipping (where available)
- Scan and redeem any Gift Card with a mobile or tablet device via the Amazon App
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
The Tool Desk
Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →
