Will an Amazon private label diaper prosper under a new name?

Parents don't take diapers lightly. Amazon discovered this about a year ago when it discontinued its line of private label diapers amid complaints of poor quality by consumers. The diapers, released under the Amazon Elements moniker, only stayed on the market a little over a month. But a report by ReCode indicated that the e-tailer may be back in the diaper game with a slightly different strategy. Amazon, according to the report, has been contacting users with a market research survey about a brand called "Mama Bear" diapers. The survey solicited reactions to "Mama Bear" diapers' branding. It asked if the branding evokes a "high quality product" and if the survey recipient would have an interest in purchasing the diapers. According to the ReCode article, the URL at which the survey was hosted contained the words "Amazon Elements," suggesting the market research was being conducted for a new Amazon private label product. Given the strong consumer reaction to the low quality of the original Amazon Elements diapers, it could make sense to start fresh with new, unrelated private label branding. But despite last year's diaper setback, the rest of Amazon's Elements line seems to be doing quite well. An article in Fortune attributes an overall increase in CPG e-commerce over the past year to Amazon, and the Elements line makes up no small part of that. The Fortune article cited a study by 1010data which indicates that CPG e-commerce grew 42 percent in 2015. This rate of growth was 12 percent higher than the 30 percent growth of total e-commerce in the same time frame. The study further indicated that Amazon's Subscribe and Save program, which schedules automatic replenishment for CPG products, has been driving the segment's growth. According to the study, more than 20 percent of e-commerce CPG growth came from Subscribe and Save. Of CPG brands with more than $5 million annual sales, the study found that Amazon Elements was the fastest growing.

• Looks Like Amazon May Sell Its Own Diapers Using A New Non-Amazon Brand - ReCode
• Amazon dumps its private label diaper line - RetailWire
• Amazon Helped Make This One Of The Fastest-Growing E-Commerce Categories Last Year - Fortune

Source: amazon.com