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Sun May 15 2016 21:06:48

Another Reason to Fear Amazon: Private Label Brands

By: Ina Steiner

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Amazon is readying the launch of additional private label brands in new categories, including food, vitamins, diapers, and detergents, according to the Wall Street Journal, which said the company may limit sales of its brands to members of its Amazon Prime subscription program.

"Amazon's latest lineup is aimed at winning sales in niches with generally higher profit margins, as well as giving the Seattle retailer a potential edge in crafting new products ahead of its own vendors," the newspaper reported. 

Another advantage: "with Amazon's rich trove of data, it may better predict which products will sell well to its customers," it noted.

Sellers already find Amazon to be an ultra-competitive marketplace where the company can mine their data to its own advantage. 

Sellers also know the advantages of selling through their own private labels - as Skip McGrath explained last year, when sellers register their brands on Amazon, it gives them much greater control over the sale of their products. Amazon would find the same to be true for its own brands as well.

Amazon has taken its time with private labels - it launched its Strathwood brand in April 2004 in Outdoor Patio Furniture, Decor and Lighting categories. Other Amazon brands have included: AmazonBasics (electronics accessories); Pinzon by Amazon (bed & bath); Denali (tools); and Elements (baby products). The Wall Street Journal said Amazon discontinued its tool line and cookware endorsed by a Seattle chef.

But this year may be the break-out year for Amazon brands as the company has even launched its own fashion brands.
Let us know how you think Amazon's advance into private label brands will impact sales for third-party merchants.




Comments (2) | Permalink

Readers Comments

Another Reason to Fear Amazon: Private Label Brands   Another Reason to Fear Amazon: Private Label Brands

by: FeelingFroggy This user has validated their user name.

Sun May 15 23:24:16 2016

If their prices are cheaper than 3 party I'm all for it. I shop by the bottom line not some name on a bottle.

Another Reason to Fear Amazon: Private Label Brands   Another Reason to Fear Amazon: Private Label Brands

by: Chicago48 This user has validated their user name.

Mon May 16 06:26:14 2016

There are some things AMZ can't brand, like cameras.  Esp. instant cameras.  If a FPM is smart they will exit whatever category AMZ enters (like Batteries) and go where AMZ can't brand.



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