[ad_1]
<div _ngcontent-c14 = "" innerhtml = "
AP Photo / Mike Stewart
ASSOCIATED PRESS
Despite Amazon's success with products such as the Echo voice-activated speakers, not everything is rosy for the e-tail giant's private label products, according to a Market impulse study.
The research company badyzed more than 23,142 products under 406 labels – some private and others exclusive to Amazon – and found that the top 10 brands accounted for 81% of sales. AmazonBasics, the company's range of everyday technological products, including a wide range of items, such as batteries and bath towels, represents only 5% of the products launched by the retailer, but generates 57% of its sales of private and exclusive brands.
"When will we learn that it's not because Amazon does that that's the right thing to do, nor that it can be a success?" Wrote RetailWire Member of BrainTrust Doug Garnett, president of Protonik, in an online discussion on the results of last week. "One of the biggest problems Amazon faces with private labels is that they do not have a means of shopping, but an ideal place to buy products that are already known."
Some other BrainTrust users were also skeptical about Amazon's private label strategy.
"If we look at Amazon.com today, it appears that internally, the conscious decision was made to simply extract elements to fill the SKU slots," wrote Cynthia Holcomb, CEO of Prefeye. "Apart from Echo, Amazon has no brand. Amazon is rather a digital warehouse of things. Stuff does not make a mark, no matter how it is promoted and marketed on Amazon. "
According to the market, SunTrust, Robinson Humphrey, predicts that Amazon's private label business will grow from $ 7.5 billion in 2018 to $ 25 billion in 2022. The vast majority of this growth, however, is expected come from Echo's products and Everyday's 365 key Everyday Labels. Remove these costs and the total sales generated by Amazon's private labels is less than $ 1 billion.
A study conducted last year by Jungle Scout revealed that four of Amazon's five private label women's clothing ranges were selling fewer than 100 items a month.
Amazon sees an opportunity to expand its private label and proprietary business, in part because of its current low penetration. Private labels represent less than 1% of Amazon's total sales.
One of the problems with Amazon's private label strategy is that it does not participate significantly in the creation of the brand. The online retailer can display its own brands on the site or give them preference in the search results, but does little more than offer a price and a basic product description to sell its customers.
Like a Bloomberg The article points out that other retailers and consumer brands, such as Target and Harvey, use social media campaigns and in-store displays to attract shoppers.
Some on RetailWire BrainTrust thinks that Amazon is looking for opportunities in categories for which there is no key reference brand for its customers.
"Amazon may not have a resounding success in certain categories like mattresses, but as they continue to find and fill holes in niches where the brand is not very present, they will continue to develop their private label ranges, "wrote Liz Adamson, senior consultant at Egility.
Others felt that Amazon's private label strategy was more about learning than launching.
"Even with limited success, I'm sure they do not just capture all the data, but understand exactly what's going on and why for their next iteration," wrote Sterling Hawkins, co-founder of the Center for Advancing Retail and Technology.
And some have argued that, despite reported weaknesses regarding private labels, Amazon was not doing so badly.
"Calling Amazon Private Label Brands a" Poor Success "with sales approaching $ 1 billion?" Wrote Michael La Kier, Principal at What Brands Want. "How many brands or retailers would they be willing to trade with them?"
">
AP Photo / Mike Stewart
ASSOCIATED PRESS
Despite Amazon's success with products such as its Echo voice-activated speakers, not everything is as rosy for the private label products of the e-tail giant, according to a study by Marketplace Pulse.
The research company badyzed more than 23,142 products under 406 labels – some private and others exclusive to Amazon – and found that the top 10 brands accounted for 81% of sales. AmazonBasics, the company's range of everyday technological products, including a wide range of items, such as batteries and bath towels, represents only 5% of the products launched by the retailer, but generates 57% of its sales of private and exclusive brands.
"When will we learn that it's not because Amazon does that that's the right thing to do, nor that it can be a success?" Wrote RetailWire BrainTrust member Doug Garnett, President of Protonik, discussed online the results of the discovery last week. "One of the biggest problems Amazon faces with private labels is that they do not have a means of shopping, but an ideal place to buy products that are already known.
Some other BrainTrust users were also skeptical about Amazon's private label strategy.
"Looking at Amazon.com today, it seems that internally, the deliberate decision was made to simply extract elements to fill the SKU slots," wrote Cynthia Holcomb, CEO of Prefeye. "Apart from Echo, Amazon has no brand. Amazon is rather a digital warehouse of things. Stuff does not make a mark, no matter how it is promoted and marketed on Amazon. "
According to the market, SunTrust, Robinson Humphrey, predicts that Amazon's private label business will grow from $ 7.5 billion in 2018 to $ 25 billion in 2022. The vast majority of this growth, however, is expected come from Echo's products and Everyday's 365 key Everyday Labels. Remove these costs and the total sales generated by Amazon's private labels is less than $ 1 billion.
A study conducted last year by Jungle Scout revealed that four of Amazon's five private label women's clothing ranges were selling fewer than 100 items a month.
Amazon sees an opportunity to expand its private label and proprietary business, in part because of its current low penetration. Private labels represent less than 1% of Amazon's total sales.
One of the problems with Amazon's private label strategy is that it does not participate significantly in the creation of the brand. The online retailer can display its own brands on the site or give them preference in the search results, but does little more than offer a price and a basic product description to sell its customers.
Like a Bloomberg The article points out that other retailers and consumer brands, such as Target and Harvey, use social media campaigns and in-store displays to attract shoppers.
Some on RetailWire BrainTrust thinks that Amazon is looking for opportunities in categories for which there is no key reference brand for its customers.
"Amazon may not have a resounding success in some mattress categories, but as they continue to find and fill holes in niches where the brand is not yet very present, they will continue to develop their private label ranges, "wrote Liz Adamson. Senior Consultant at Egility.
Others felt that Amazon's private label strategy was more about learning than launching.
"Even with limited success, I'm sure they do not just capture all the data, but understand exactly what's going on and why for their next iteration," wrote Sterling Hawkins, co-founder of the Center for Advancing Retail and Technology.
And some have argued that, despite reported weaknesses regarding private labels, Amazon was not doing so badly.
"Calling Amazon private brands a" low level of success "when sales are only $ 1 billion?" Writes Michael La Kier, director of What Brands Want. "How many brands or retailers would they be willing to trade with them?"
