CRAP

CRAP stands for Cannot Realise Any Profit - a term used internally at Amazon to describe items that:

• Have low margins
• Are too expensive to ship due to size or weight
• Are frequently returned
• Do not sell fast enough

Common triggers for CRAP status include:

• Low Contribution Margin (CM)
• High Customer Returns
• Excessive Shipping & Handling Costs
• Failing to meet Profitability Thresholds for Amazon Retail (1P)

What happens when an item is CRAPped?

• Amazon may stop placing POs for the product
• The Buy Box might disappear
• It may show as “Currently Unavailable”
• Amazon could suppress the listing from search visibility
• In some cases, only 3P sellers can continue offering it

How vendors can respond:

• Offer better pricing or cost concessions
• Enroll in marketing programs to boost velocity
• Switch to 3P model (Seller Central)
• Use SIOC packaging (Ships in Own Container) to lower handling costs
• Reduce product dimensions or bundle strategically

💡 Example: A $5 bottle of water that weighs 2kg and is shipped individually will likely be classified as CRAP - Amazon loses money on every sale.

In short:
CRAP = “Cannot Realise Any Profit” - Amazon may delist or stop ordering these items because they are unprofitable to stock and ship.