Amazon (NASDAQ:AMZN) CEO Andy Jassy said consumers are selling below the average selling price.
In an interview with CNBC, Jassy said consumers are spending, but they are very careful about what they spend and how much they spend.
Consumers, he said, “whenever they can they find a deal, they take the deal,” however, everyday essential businesses saw 20% year-on-year growth in the fourth quarter of last year. “It will be a long time before people don’t buy detergent or shampoo , or something like that.”
He also said that where he has seen a real impact of inflation is in discretionary items such as TVs, computers or other electronic devices. “We are increasing our share of the market segment at a faster pace than others, but still at a slower pace than we see in a healthy economy.”
From a business perspective, he added, over the past two years companies have tried to save money “however they can.” This has been seen in Amazon Web Services.
“I think a lot of the cost optimization has faded,” he said. “And we saw a lot of deals that people had been talking to us about for a long time, [which] they were sitting on the back burner and started to move.”
Jassy said there is a whole pipeline of e-commerce businesses that are migrating from “largely trying to save costs to figure out how to modernize their infrastructure again,” moving from on-premise to cloud storage and “thinking how to use generative AI to change their business.”