Amazon recently rolled out a “$10 & Under” feature on its website and app, in a move targeting the US dollar store segment.
$10 and Under lets customers buy items at bargain prices and also offers free shipping. One analyst described it as an extension of Amazon’s retail ecosystem, which duplicates the “treasure hunt” experience catered to by dollar-store retailers.
While shipping costs – which have to be passed on to the customer or absorbed by the retailer – are a particular challenge to low-price retailing, existing players have figured out how to make it work. With its well-developed logistics network, Amazon may be positioned to succeed as well.
Source: Yahoo Finance