DISCUSSION

Will Amazon.com become the king of private label?

Written by George Anderson
Private labels are not new to Amazon.com. The company has achieved a number of high profile successes and a few failures along the way. Now, comes a Wall Street Journal report that claims the e-tailer is preparing the launch of multiple private label lines across a wide variety of product categories within weeks. Will the new lines be game changers in and of themselves or just small pieces in Amazon’s strategy to become an indispensable fixture in the daily lives of American consumers? According to the Journal, Amazon will begin launching the new private food and household product brands, with names including Happy Belly, Mama Bear, Presto! and Wickedly Prime, later this month or in early June. At least initially, Amazon will restrict the sale of its new own labels to Prime members. If handled properly, Amazon could use private label staples as a means to reinforce its reputation for quality and low prices at the same time. Private labels, if managed in a similar fashion like other food, drug and mass retailers, could help the e-tailer offset some of the losses associated with the delivery of groceries to customers. Amazon declined to comment on the report. Image source: amazon.com

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