Amazon on Private Label

Amazon has dabbled in this space already.   How will it be integrated with classic CPG marketing?

Is Amazon poised to dominate private-label products?

Amazon not only offers its AmazonBasics line of private-label products, but the company also brings in sales from the nearly 45 other brands it owns. Because Amazon can pore through its customer and sales data, the retailer is likely to launch new products to compete with high-selling brands and dominate private-label sales in 2018, writes Shareen Pathak.

Amazon has long honed the business of being the middleman — getting brands to sell on its site, letting shoppers pay for and receive those items fast and efficiently.

But 2017 was the year Amazon started taking steps to create its own brands. If done at the right price point, Amazon will be in a strong position next year to prove it not only can help other retailers grow, it can be a retailer itself.

Amazon already has its AmazonBasics line of essentials like batteries and chargers. These items are largely commoditized, said Forrester analyst Sucharita Mulpuru-Kodali. It’s easy for Amazon to keep growing there: By bumping those products up in search results and pricing them right — which will be easy to do since Amazon owns the data — this line is poised to keep growing.