- Amazon’s product prices have risen more slowly than US inflation this year.
- Amazon’s economists believe product prices will rise more slowly going forward.
- The forecasts are part of a larger macroeconomic study put together by Amazon’s economics, science and finance teams.
According to an internal document obtained by Insider, the price of products sold on Amazon has risen more slowly than the US inflation rate this year.
The document said Amazon’s product prices rose 6% in 2022, below the average inflation range of 7% to 9% in the US this year.
Amazon expects product prices to drop below 3% in 2023 and then turn negative in 2024.
These growth rates suggest that Amazon may be responding to record inflation rates by reducing its influence on customers. During Amazon’s most recent earnings call in October, CFO Brian Olsavsky said sales growth was slowing as “consumers assess their purchasing power.”
“When faced with an uncertain economy or some kind of disruptive event, customers tend to turn to companies they believe have the best customer experience and take the best care of them. This is where our efforts continue to focus,” Olsavsky said. aforementioned.
The report, put together by Amazon’s economics, finance and science teams, is part of the company’s internal research into the broader macroeconomic landscape. The 12-page study touched upon the possibility of a recession, the forecast of inflation, and their impact on Amazon’s overall business, as Insider previously reported.
The report also notes that the most recent estimates for US inflation are close to 3% at the end of 2023 and just over 2% in 2024.
Amazon’s spokesperson said in an email to Insider that the company’s leadership team disagreed with its own economists.
“The document in question does not reflect the company’s position in the economy and where it is heading. Our CFO, Brian Olsavsky, shared our thoughts on our most recent earnings call, and our CEO shared his thoughts in an interview at the Dealbook event on Dec. 6. “It reflects the thoughts of some of our economists,” he said.
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