Amazon.com’s jewelry business is in danger of losing money, as sales of its own online shop, Mejuri, are falling as much as half of the company’s online sales, analysts say.
The company, which has faced multiple rounds of criticism from its customers for its price and its reliance on foreign suppliers, said Thursday it expects to post a loss of about $2.5 billion in the third quarter of fiscal 2019, which ends in March.
Analysts said the losses are the biggest since the company entered the jewelry business in the 1980s.
“Amazon has not been very good at selling online,” said Manish Gupta, chief executive officer of BNY Mellon Group.
“There is no one there who can be trusted.”
Amazon, which said last year it plans to open another online store by year-end, also is under pressure to improve its product selection.
The online retailer is not only losing money as the prices of its online store and its own store have fallen, but the prices it charges for its own merchandise also have fallen.
Amazon is also losing money on its online shopping services.
The company said in May that it would shut down its shopping service Amazon Fresh, which launched last year.
Analysts said Amazon has been struggling with low sales of jewelry, which are typically its most popular revenue stream.
The online retailer, which is valued at $7.5 trillion, is the third-largest retailer in the world behind Walmart and Apple.
It also has been hit by the decline of its main rival, Google, whose services have been increasingly targeted by online shoppers, as well as by Amazon’s rivals, Walmart and Best Buy.