Amazon and its growing private brand portfolio are once again in the press. This time venerable advertising trade magazine ADWEEK takes a look at the rise of private label at the e-commerce giant. The story follows the now well-worn path of other articles by briefly telling the history and bemoaning Amazons ability to use data to create brands and products.
The author buys into Amazons confusing terminology and accepts that labels created by manufacturers as shelf fillers are private brands (Mountain Falls is a trademark owned by Vijon it is not a Private Brand owned by Amazon (a retailer).
Private brand at Amazon is indeed a complicated world and it includes a broad portfolio of brands and products each of which serves a different role. From Kindle to Buttoned Down to Amazon Basics, Amazon is quickly growing its brands.
Read the article.
Inside the Complicated World of Amazon’s Private-Label Businesses
The retailer and third-party sellers are both partners and rivals
In Amazon’s early days, enterprising merchants carved out lucrative niches for themselves by identifying what wasn’t being sold on the site, sourcing those products at low prices and offering them as third-party sellers. This phenomenon helped the ecommerce platform serve more consumers while mitigating its risk and made Amazon the so-called Everything Store it is today. Eventually, it also inspired a change in the mega retailer’s business model.
In 2007, Amazon launched its own private-label business by taking a page from third-party sellers: Find popular products on the site and sell them at a lower price, in this case under a “brand” name created by Amazon itself. First was luxury bed-and-bath brand Pinzon, which Amazon followed with everyday-items brand AmazonBasics in 2009. The retailer’s private-label business has since grown to include 119 brands, per a recent study from research firm Gartner L2, including Amazon Essentials, which features apparel, and paper goods brand Presto.