Amazon removes special promotional spots for private label products

Despite the aggressive promotion of Amazon, its private labels have not been successful. The spokesman for Amazon said that his private label products accounted for "about 1%" of total retail sales.

In a comprehensive report on Amazon's private label industry, market research firm Pulse found that only a handful of products, such as batteries, had been successful, while others were largely part failed.

"The number of products and brands that have failed shows that the company did not understand it," said Marketplace Pulse General Manager Joe Kaziukenas.

Nevertheless, Amazon continues to double its business to develop its private label offerings. Last month, Amazon had 119 private label brands, in addition to 314 exclusive third-party brands that only sell on Amazon, according to the L2 research firm Gartner. Almost all of these brands have been created in the last three years, says the report.

Oscar Barbarin, a former employee of Amazon who heads the ARMR consulting agency, said that Amazon may have greater ambitions for the deleted commercials and could bring them back to the market. future so that other brands can bid. In testing over the past year, Amazon now knows how valuable these spots can be to boost sales and could charge a higher premium to other brands that are willing to pay.

"Amazon's motivations could have been to test the effectiveness of this placement for future announcements," Barbarin said.

Sellers, however, are showing relief for the moment, as some Amazon promotions, such as contextual ads in its rival's product listing, were considered too unwelcome, according to Judah Bergman, an Amazon salesman for three years. years. The change, he said, will help sellers and brands advertise their products without fear of unfairly losing their exposure to Amazon's own product announcements.

"This rebadures us that Amazon is aware of antitrust concerns and will allow brands like mine to continue to grow and prosper on Amazon without fear of being pulled off the page for no reason," he said. he declared.