Amazon has discontinued thirty of its clothing brands in recent months. Clothing brands account for more than half of Amazon’s hundreds of private label brands; however, they rarely succeed. Amazon Essentials, Goodthreads, Daily Ritual, and Lark & Ro brands have performed well, and yet most other brands haven’t. Thus, the company is starting to trim the portfolio of owned brands.
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3.3 million new third-party sellers have joined Amazon marketplaces worldwide since January 1st, 2017; over a million of which joined the Amazon.com marketplace in the US. Three million equals to 3,317 new sellers every day for the last one thousand days, or 138 every hour, or even two new sellers every minute.
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Revenue from Amazon private label brands pales in comparison to the negative attention they have attracted. Amazon's brands have only grown to a few billion dollars in sales a year - less than 1% of company's total sales - while drawing increasing critique from the industry and the press, and more recently scrutiny from government regulators.
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Amazon is testing a new "Our Brand" badge for its private label products. Sponsored products ads for Amazon-owned brands now have a label "Our Brand" instead of "Sponsored." Amazon has also increased the number of sponsored products ads at the start of search results from two to three across all searches.
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Last year Amazon launched two high-profile AmazonBasics products - a $59.99 Alexa-enabled microwave and a foam mattress starting at $129.99. However, while the microwave became the best-seller from day one, the mattress failed to do the same. Amazon's private label efforts is not a best-seller-generating magic box. Understanding why some products don't become best-sellers tells a more revealing story than those who do.
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In March, Amazon launched Belei, a skincare brand consisting of cleansing wipes, moisturizers, masks, and serums. Six months later, the brand has failed to impress consumers. Belei products are rated 3.8 out of 5 stars, and none had become best-sellers.
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Amazon is testing a new "Top Brand" badge for products from established brands. If and how this badge gets rolled out could have a substantial impact on how shoppers decide which products to buy as well as how established brands defend against price-aggressive private label products.
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In an interview with an antitrust expert Sally Hubbard, we discussed what makes Amazon a monopoly, how that affects consumers, businesses relying on Amazon, and competitors, as well as what actions and regulations antitrust investigations might bring in the future.
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On Prime Day 2019, the biggest winners were known brands and Amazon devices, as Amazon-owned private label brands took a back seat, according to Marketplace Pulse research. Over a million products were available with a Prime Day deal, but as competing retailers like Walmart and Target launched their shopping events, Amazon shifted focus to exclusive products and new product launches.
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The number of AmazonBasics best-sellers has grown by fifty percent in a year - from just over 700 in July 2018 to surpassing 1,000 this July. Amazon continues to launch new products, validate demand for them, and stop selling those which fail to attract customers.
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