Amazon — Selling what it makes.
From the WSJ as it looks into Amazon’s recent announcements about ‘new’ products…
Amazon.com Inc. in the coming weeks is set to roll out new lines of private-label brands that will include its first broad push into perishable foods, according to people familiar with the matter. The new brands with names like Happy Belly, Wickedly Prime and Mama Bear will include nuts, spices, tea, coffee, baby food and vitamins, as well as household items such as diapers and laundry detergents, these people said. The first of the brands could begin appearing on Amazon’s namesake site as soon as the end of the month or early June, said one of the people…
Consumers have warmed to private-label brands since the days of generically named products sold in plain white packaging. Today, retailers from Wal-Mart Stores Inc. to Sephora to Dean & DeLuca sell a range of in-house brands that some may even view as higher quality. Store brands reached $118.4 billion in U.S. sales last year, up about $2.2 billion from the prior year, according to the Private Label Manufacturers Association.
As this story continues to developed I am constantly curious about all the other products that Amazon has made over the past few years… I don’t remember the last HDMI cable that actually had a brand name on it … Amazon Basics seems to have been around for a long time… so why is this such a big deal?
Well here is the thing, at least in my mind…
The store shelf is no longer.
Yea, may not seem like a big deal, but it is when you think about all the other things that come along with these agreements… the potential is massive.
Since the beginning, CPG brands have been playing the retail game… leveraging their size to get the best shelf / floor space and making end-caps BEAUTIFUL. “You want Tide? Well we need this entire space… and yea, you can’t sell anything else” But as Amazon enters this market, it avoids this problem all together.
The other thing it avoids — Advertising. The platform is the most widely shopped online retail locations… so why bother?
As mentioned, Amazon has a few key things going for it— Shelf space, full control of the shopping experience and sheer size (only outpaced by Walmart).
As these products roll out, we will quickly see other brands try to find ways to complete… As the isle in-store becomes less and less relevant.
Much more on this, obviously. Just the beginning.
Sources: Ben T / WSJ / Amazon