We said it before and we’ll said it again.
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Unlike other markets that Amazon.com, Inc.
Amy Gesenhues is Third Door Media’s General Assignment Reporter, covering the latest news and updates for Marketing Land and Search Engine Land. The brands will have names such as Happy Belly, Wickedly Prime and Mama Bear.
Amazon is planning to expand the store-brand products it sells to new categories including food and household products, according to a report by The Wall Street Journal. Amazon offers nearly all products at discounts and its own brands would also help to cut prices of competitors on its website. According to the Journal, the company’s Happy Belly products will include trail mix and cooking oil, among other products. Several examples of products that will be offered are spices, tea, coffee, baby food, diapers and laundry detergents. Amazon has limited sales of those wipes to members of its $99-a-year Prime program to encourage more shoppers to sign up. Earlier this year, the company shut down its diaper product, so what’s the odds that this time around it’ll succeed?
“Amazon is “carpet-bombing” the market with new products”.
By dealing in private label brands, Amazon.com, Inc.
A report published in Gizmodo revealed, Amazon already sells plenty of own-branded products, from USB cables and baby wipes to clothes and linen, but so far it’s steered clear of filling up your grocery cupboard with its own products. Of course through the years there have been some withdrawals. Since you manufacture the product yourself, there is no profit sharing and hence, Amazon will keep all the profits.
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Amazon’s strength means it is already a key customer for some FMCG manufacturers. Consumers once regarded what were once called “generic” items as lower quality but now mostly accept the notion that they are backed by the retailer, whose brand is often better etched into customers’ consciousness than national brands once were. Any health-related recalls could damage Amazon’s reputation. If your own-brand food gives someone salmonella, you risk long-term reputational damage. “They have met with transport Companies and distributors and they are now of the opinion that they could not deliver a profitable business model in the long term”. But these days, a wider and wider array of products is available for Prime one-day shipping or even prime same-day shipping.
