Below we have a list of over 80 known Amazon Own Brands or Amazon Private labels as they are sometimes referred to. It’s by no means a complete list as it doesn’t include products such as Amazon Echo, Amazon Fire TV, Amazon Fire Tablet and Amazon Kindle products which come under the Amazon name. It’s also largely a US list and doesn’t include all the Amazon Own Brands from the UK and other territories around the world. What it does serve is to demonstrate the scope of Amazon Own Brands and how much they’ve grown in recent years.
Amazon Own Brands have grown to account for around 1% of Amazon’s total sales although Amazon didn’t specify if they were measuring total sales by product units or revenues. Nevertheless, 1% by whichever yardstick you use is a small but significant proportion of their business.
Amazon Own Brands vs Merchants
Amazon have around 2,500,000 merchants actively selling on their marketplace and Amazon reports that merchants sell more than half of all product units sold on the site. In the past the major competition would have been Amazon Retail selling products sourced through Amazon Vendors, but with their growing Private Label business, Amazon Own Brands will increasingly become the real competition in the future.
If Amazon have 2,500,000 merchants then for Amazon Own Brands (even if counted as 80 odd individual businesses) to take 1% of total sales is massive.
Amazon justified their 1% take of total sales by comparing themselves with household names like Aldi, Asda, Lidl, and Tesco, each of whom Amazon say have private label products that represent 25% to 85% of their sales. The difference being, of course, that none of the named supermarkets operate as marketplaces.
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2 Responses
They can not legislate to stop Amazon selling its own products because all the other companies also sell their own branded goods. The world trade organisation states that all companies must be treated equally. Meaning it they ban Amazon from selling its own goods then they would have to ban walmart from selling its own products in store, and that will never happen.
Every year Amazon will create dozens of own branded companies and list them on its marketplace. Where Amazon own branded goods every year will take market share and will grow overtime to be a significant profit centre for Amazon.
Amazon will do what all the other companies do. Which is to manufacture in Bangaladesh and pay slave Labour wages, list the products on its site with a heft mark up and make a massive profit and nobody can do anything about it because of free trade. Manufacturing over time will disappear in America because they can not compete with slave Labour wages in Bangaladesh. Which will create massive unemployment in America. The only people that will do well out of this is Jeff Bezos and the other share holders of Amazon. Donald Trump has been trying to stop this with trade wars and the fake news media demonize Trump.
Kevin about as educated as an orange on this subject. Pipe down sunshine.