As we noted in our last post, Amazon is now offering fashion clothing and accessories under its own private labels. Why…upstreamcommerce.com
Private labeling is basically when a company decides they want their own specific type of brand for a certain product so that it can make the most profit out of this product as well as build brand loyalty for customers who come to their store looking specifically for the company’s product. When it comes to sorting out which products go where in your store it is essential that the products that are private labeled to your company are in the best possible location to be seen by customers easily. For instance in my local super market they have privately labeled soda cans and they are placed directly at eye level and in front of other well known brands. Another thing that attracts customers is that with private labeling you can set your own price and your products can be cheaper and with cheaper products you are going to make a better profit. If a person walks into a supermarket and sees that Coca-Cola products are priced at 89 cents a can but the private labeled soda is priced at 69 cents a can they will think to themselves that it might just be worth it to buy a lot of the private labeled brand because it is cheaper and you can get more bang for your buck. In the article that I attached it talked about the 10 advantages of having private label’s and I agree with all of them. I never knew how much private labels could come into play with retailers before and it was interesting to learn something new.