As Amazon has grown larger, so too have the complaints from brands that aren't exactly happy with the way their proprietary products are sold on the eCommerce giant's sprawling website. In a classic case of "careful what you wish for," Amazon may have found a way to ironically solve those worries, while making a quick buck of its own.
Citing anonymous sources close to the matter, The Wall Street Journal reported on Sunday (May 15) that Amazon is set to unveil a new collection of private-label brands across several categories over the next few weeks. With new items expected to pop up on the site in categories like perishable foods and household items, Amazon will be able to test out its much-beloved pricing experiments without tweaking the noses of established brand partners.
It's a plan that Bill Bishop, chief architect of brand consultant firm Brick Meets Click, told WSJ is as close to a win-win as any retailer can find in the real world anymore.
“Amazon is ‘carpet-bombing’ the market with new products,” Bishop said. “Private label allows them to test out new prices and distinctive flavors with less risk.”
Amazon declined to comment on the story, so the official names of the to-be-released private-label brands aren't yet known. However, WSJ's sources did outline a few of the expected additions. Happy Belly, a healthy foods line, and Wickedly Prime, a snack-focused extension, will beef up Amazon's edible offerings, while Presto!, a household product grouping, and Mama Bear, a baby products brand, will add a more domestic touch to the already gigantic marketplace.