Some of the overheard brand names now areHappy Belly line of nuts, tea, and cooking oil, Wickedly Prime snack foods, and Mama Bear baby products such as diapers and baby-food. The latest report says the first of the new brands could debut by the end of May or early June.
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Amazon is gearing up to unveil its new private-label brands in the coming few weeks, people familiar with the matter have told the Wall Street Journal.
Amazon declined to comment on the report in a request for a statement from Mashable.
Own-brand products are preferred by both consumers and retailers.
The U.S. market for private-label goods reached nearly $120 billion in 2015, so it wouldn’t be particularly surprising if Amazon is seeking a piece of the pie.
As for the reported decision to cater only to Prime customers with this new service, it appears to be a sound strategy from the company. In some cases, Amazon moves to bring products remarkably similar to those on its marketplace, like a best-selling aluminum laptop stand that saw sales fall after AmazonBasics introduced its own version. “Private label allows them to test out new prices and distinctive flavors with less risk”. Private-label portfolios tend to have higher profit margins than brand-name goods because the companies save on marketing and brand development.
Private label offerings is something that several retailers do and it seems that Amazon.com, Inc. It already sells hundreds of own-branded items in electronics and fashion.
Amazon will begin offering house-branded coffee, nuts, and spices, as well as baby food and diapers, under its own brand, the Verge quoted the Wall Street Journal.
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Currently, Amazon engages in the sale of other own-branded products, such as USB cables and baby wipes, along with clothes and linen. This is mainly due to the fact that any recalls of food products will ruin its reputation. For its new brands Amazon will depend on manufacturers that may have varying quality controls.
