There is a lot of speculation about Amazon’s private label business, but the company has been quick to deny all rumors. Despite the rumors though, Amazon continues to maintain its private label business.
In fact, there are currently more than 1300 best-selling Amazon Basics products available on Amazon.com in everything from kitchen supplies to pet supplies, office supplies, batteries, furniture, fitness gear, bedding, and drones. Although the AmazonBasics brand includes tens of thousands of products, most of its sales come from less than 100 top products.
Our Findings
Amazon is not abandoning its private label business or AmazonBasics products.
Amazon is one of the world’s largest retailers, and it has been a leader in the industry with its innovative approach to retailing. The company’s success has led many people to speculate that it will abandon its private label business or AmazonBasics products at some point in the future. However, this is not true; Amazon has no plans to discontinue either of these initiatives at this time. Amazon has only discontinued their private label items that proved to be unsuccessful on their marketplace in the past.
Additionally, the amount of AmazonBasics best-selling products remained largely the same over the past two years. This highlights the fact that Amazon did not make any apparent moves to expand into other niches or product categories on the platform.
Why the Rumors About Exiting Private Label?
Despite the rumors, Amazon continues to invest in its private label business.
However, Amazon has considered exiting the private label business to appease regulators. Amazon has been in hot water, accused of competing with its own sellers to a certain degree. During a conference call with analysts on July 26th, CEO Jeff Bezos said: “We have thought about this for years but we have never made a decision because when you start selling your own product…you become very visible.”
Amazon Will Continue Its Efforts to Retain Its Private Label Offerings Over the Coming Years.
Amazon will continue to invest in its private label business. The company has been making big strides into the grocery market, expanding their offerings and acquiring Whole Foods, but they’re not done yet. Amazon Prime members can expect to see even more products from Amazon, both in the future and now at their local store as well.
Amazon also recently announced that it is opening a new fulfillment center for its own-brand products near Chicago. In addition to this location, there are already three others operational in Texas, New Jersey and Tennessee respectively. These centers work alongside third-party sellers who offer their goods through the online retailer’s website and app store.
Amazon’s Consideration of Ditching AmazonBasics Private Label
The company has indeed considered exiting the private label business to appease regulators due to recent pressures.
In an email to CNBC back in April 2019, Amazon stated it was looking at different options for its private label business and that it wasn’t abandoning it. The company mentioned, “We are always looking at new ways to serve customers by offering them more choice and convenience.”
Conclusion
In recent months, there have been rumors that Amazon is abandoning its private label business and AmazonBasics products.
These rumors have been circulating because the company has allegedly considered exiting the private label business to appease regulators in the United States. However, those who are familiar with how Amazon operates know that it would not abandon its most successful private label product line so easily.
The truth is that Amazon will not abandon its private label business or AmazonBasics products, despite what these rumors say. The company’s entry into this market was one of their best decisions yet—and it continues to pay off for them today and into the future!
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