ADAGE & The Complicated World of Amazon Private Brand

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.

Read the entire story.

Previous articleLidl Launches Water to Give Back
Next articleSheetz Unveil Limited-Edition Private Brand Coffee Bean IPA
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.