Amazon reduces its private label products

Slow sales

Amazon reduces its private label products  As revenues decline, Amazon cuts back on its private-label products.
According to sources familiar with the situation. The Wall Street Journal reported on Thursday that Amazon. Com, Inc (AMZN.O) has begun decreasing the number of products. It also offers under its own brands due to slow sales. Read more…

private label industry

In order to lessen regulatory pressure, the corporation has reportedly talked about possibly completely quitting the private-label industry. According to the newspaper. Amazon, though, insisted that it has never thought about shutting down the private label division.
We will continue to invest in this area. Just as our various retail competitors have done for decades. And also are still doing so, according to a company representative.
According to the WSJ story, the move to pare back many of the in-house brand products was partially motivated by disappointing sales.

According to the source, the company’s leadership has also discussed reducing its in-house label assortment in the United States by more than half and has asked its private-label staff to decrease the list of products and not reorder many of them over the past six months. Read more…

Worldwide consumer division

According to the source, Dave Clark, a longstanding Amazon executive who was appointed president of its worldwide consumer division in January 2021, reviewed the company, which led to the decision.

With the European Commission accusing Amazon in 2020 of abusing its size, influence, and data to promote its own items and gain an unfair advantage over other merchants who also use its platform, the company’s house-brand division has generated controversy.
The dominant American online retailer has now offered to stop using sellers’ data for its own rival retail operations and its private-label goods. Read more…

Consumers

Consumers find it challenging to identify private labels online due to this unfamiliarity, which makes it extra harder for businesses to compete on pricing. On its website, Amazon owns more than 100 private label companies that are active in dozens of industries, including food and beverage, apparel, electronics, and automobiles. Read more…