Amazon To Grow Pet, Baby, Lawn & Garden & OTC Private Brand

Private brand expansion is a major priority for Amazon with dozens of new sample products being introduced every year to help the company determine their next big expansion. According to a new report by eCommerce analytics provider One Click RetailAmazon’s Private Brand product line is expected to expand their private label offerings in: Pet Carriers, Diapers and Patio Heaters.

AmazonBasics Pet Carriers

According to One Click Retail’s Q1 2018 Amazon Private Brands, AmazonBasics Pet Carriers, though still in the monitoring phase, brought in $2M in estimated 2017 sales, a YoY growth of 80%, and produced the top four bestselling Pet Carriers of 2017. Findings reveal that even though all their items are top performers, the brand is only #4 in this space because they have too few items available (the category is worth an estimated $16M).

“The introduction of new sizes and varieties of Pet Carriers is a major growth opportunity for Amazon, and we expect the expansion could happen any day now,” said Spencer Millerberg, CEO at One Click Retail.

Mama Bear Diapers

After a past failure in the category, Amazon has already collected a lot of data on Diapers and has shown their commitment to competing in this space with a month-long 20% promotion in February 2018. Report data reveals that although February 2018’s promotion was successful (lifting estimated weekly sales from $20K to $100K), the long-term lift is still uncertain. With diapers being a major category for Amazon (with an estimated $530M in 2017 sales), One Click Retail expects Amazon to pay particular attention to this space over the next 12 months.

AmazonBasics Patio Heaters

Currently, Amazon lacks a strong Lawn & Garden foothold in their Private Brands lineup. One Click Retail findings reveal in 2014 Amazon released a small set of products under the AmazonBasics brand, with steady sales of about $3M per year and a gradual growth of 10% YoY. Of these sample products, the strongest is an outdoor stand heater available in three styles.

“In an effort to expand into Lawn & Garden, we expect Amazon to introduce a new line of Patio Heaters this coming Fall to capture seasonal purchases,” said Millerberg. “The expansion will likely introduce new styles to the AmazonBasics line such as tabletop heaters and wall hangers.”

Basic Care Over-the-Counter Medicine

Amazon’s latest investment is the August 2017 launch of Basic Care, an over-the-counter medicine brand created in partnership with Perrigo. Basic Care launched with 60 individual SKUs, a larger count than almost all of Amazon’s past sample product lines. In Q1 2018, the brand sold only $20K in estimated revenue and has not yet been supported by a kick-start promotion.

To read the One Click Retail report on the evolution of Amazon’s Private Brand strategy, visit Private Brands: Where Will Amazon Go Next?

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Christopher Durham
Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan). Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s. Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago. Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.