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Amazon Has Designs on Fashion Supremacy

Amazon says Fashion is one of its fastest growing categories and that large numbers of brands have partnered to sell their items on Amazon’s websites. But a new report out says Amazon may be designing its own apparel brand.

This week, Amazon appointed fashion blogger Chiara Ferragni its fashion ambassador for its European Spring/Summer 2016 Campaign. “Chiara will feature in Amazon’s advertising and social media campaign for fashion across Europe, and the items worn by Chiara in the campaign will be available to buy from Amazon’s five European websites from 8 March,” Amazon UK announced.

But its ambitions don’t end there. Wall Street firm Pacific Crest says Amazon may be readying its own private label clothing brand, according to BidnessEtc.com.

Its evidence – job openings for the Amazon Private Label team, which is looking for brand managers, merchandisers, and inventory planning managers.

The benefit to Amazon – profits. “Having its own clothing brand will Amazon facilitate establishment of higher gross margins and profits, which is common with the private-label apparels’ approach. It ability to scale operations can also drive more meaningful and efficient cost-cutting structure.”

It’s not such a radical idea – Amazon has private labels in other categories, including electronics accessories, bedding, outdoor furniture, tools, and diapers. And last year, the Wall Street Journal said private label in groceries could be next.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.