Amazon’s private label brands show growth success

With recent developments, it looks like Amazon is all set to take over the market with products developed on its own. Today, it you look for some dog food over Amazon, you might find the name Wag listed with the picture of an ocean in the foreground of a fluffy and golden dog sitting by a woman on the cliff. It might look like a common dog food choice from the brands listed by the e-commerce giant. However, this particular brand is manufactured by Amazon.

The brand “Wag” was launched in the month of May after which Amazon successfully entered pet food domain. After the e-commerce brand mastered the art of selling the products manufactured by someone else, Amazon has started shifting its focus from listing the products made by others to manufacturing items all by itself.

Amazon’s own private label now flaunts a sales profit that has reached $7.5 billion just this year. According to the estimates provided by analysts working at the SunTrust Robinson, the sales might reach the $25 billion mark by 2022. This shift has shown enormous implications for all its customers as well as the brand partners. Amazon’s first private brand label named AMZN was launched in 2007 from which it started manufacturing and selling bed & bath products. Following this, Amazon added 125 more brands as confirmed by TJI Research that tracks the growth experienced by Amazon.

This collection houses everything from toilet papers to paper towels under the brand name Presto! to shorts and T-shirts meant for kids under the label name Spotted Zebra. Now, Amazon is expediting its strategy for the private label. In the last 18 months, the company has successfully introduced 6 dozen brands and just last week a new memory foam based mattress was added to the collection named AmazonBasics.

A faction of brands produced by Amazon carry the name like Amazon Essentials or AmazonBasics. However, most of this just sound as they were introduced by generic brands with names such as Indigo Society Jeans, True Angel Sweaters, and Crafted Collar Button-Downs. However, as Amazon grows into manufacturing its very own products, the market manufacturers are becoming increasingly concerned. The manufacturers that list out their products over Amazon are now worried if the e-commerce company is actually acting as their competitor. However, Amazon still stands to its statement that the brands listed over Amazon are still among best sellers with no such risk.

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