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Will Amazon's new private label give Pampers a run for its money?

December 5, 2014Written by Keith Anderson

Amazon has launched Amazon Elements, a new line of private label diapers and baby wipes offered exclusively to Amazon Prime members. The launch has been rumored for over a year based on job postings.

On a landing page for the new brand, Elements is described as "Premium Products. Transparent Origins. Exclusive to Prime."

At launch, there appear to be nine products listed under the label, ranging in price from $9.99 for 40 "Soft & Cozy" diapers to $44.99 for a "monthly pack" of 160 diapers.

Seven of the nine products are available through PrimePantry, the national program featuring everyday household essentials Amazon launched for Prime members in April 2014. One pack (the monthly pack) is eligible for Subscribe & Save, another Amazon program offering savings for regular shipments of high-frequency consumables.

Amazon says it is developing the new products with customers in mind based on input from ratings and reviews. The company claims it won't "design packaging for store shelves instead of customers" or "base our decisions on business needs instead of customer needs."

The Elements line also emphasizes transparency about the origins, safety, and environmental impact of each product. Amazon will disclose the source and purpose of ingredients used in its products, and each package will display a unique code with the product's history from "creation to expiration."

Re/Code writer Jason Del Rey compared the brand's positioning to that of Honest, the fast-growing diaper brand co-founded by actress Jessica Alba. Honest is available at Target but is not distributed at Amazon.

Elements is not Amazon's first private label. It also offers the AmazonBasics line of electronics accessories as well as Pinzon (home décor) and Strathmore (furniture). The impact of these labels in their respective categories is unclear.

As Amazon's investments in grocery and CPG categories through PrimePantry and the expansion of AmazonFresh have increased, the opportunities for strategic collaboration between Amazon and leading brands have appeared to strengthen. But the introduction of private label consumables could have implications for Amazon's relationships with leading national brand manufacturers.

The diaper category has been instrumental in Amazon's growth with families, in part due to strong support from leading brands. Amazon is reported to be a top five customer of P&G's Pampers brand, for example.

The absence of competition from private label has historically been a key selling point for doing business with Amazon — one that may now be disappearing.

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