Amazon CEO Andy Jassy revealed that the company's retail prices have decreased year-over-year, attributing this directly to extensive operational efficiencies. "It's pretty easy to lower prices, but it's much harder to be able to afford lower prices, and it's really true," Jassy told CNBC. He emphasized Amazon's disproportionate focus on invention and reducing its cost-to-serve within its fulfillment network to enable sustained low pricing for customers.
This strategy involves substantial infrastructure investments, including a complete rearchitecture of Amazon's U.S. regional network. By storing items closer to end consumers, Jassy explained, products travel shorter distances, arrive faster, and are less expensive to deliver. This move is a core component of how Amazon retail prices remain competitive.
