Amazon’s private label business is booming thanks to device marketings, expanded style lines

Category: Blog
535 0

Amazon has been doubling down on its private label business in recent months, though many of its own brands arent easily identifiable to customers as they dont indicate theyre Amazon-made products. But these private labels have been gaining steam, according to a new report out this week from 1010 data. Several Amazon brands have been watching tremendous growth, it found, including AmazonBasics, kids clothing brand Scout+ Ro, Amazon Elements, and other Amazon-made devices like Echo, Kindle, and Fire TV.

The report comes from analytics and insights firm 1010 data, which regularly tracks Amazons private label business.

During the first half of the year, Amazons private labels accounted for merely 2 percent of total divisions sold, excluding marketplace and subscriptions, but the retailer boosted the above figures to 12 percent during Prime Day, the report found.

Not all that surprisingly, Amazons private label line AmazonBasicswas the top performer in so far this year. This line today includes a wide array of everyday essentials, including electronic accessories like HDMI cables and phone chargers, batteries,( non-Alexa) bluetooth speakers, pet supplyings, office accessories, and even home goods like bed sheets, bath towels, and knife situates , among other things. In total, it accounts for nearly 2,000 different products, inducing it Amazons largest private label to date.

According to 1010 data, this group of products pulled in over $200 million in marketings during the first half of 2017.

Thatwas closely followed by Amazons private label electronics lines, including Echo, Fire TV and Kindle, which pulled in $120 million, $110 million, and $75 million, respectively during the same time frame. Combined, they accounted for 55 percent of Amazons private label marketings, research reports said. Echo was a huge part of this growth trend, with marketings doubling year-over-year( up 101 percentage ); however, Kindle Fire marketings have virtually tripled, up 184 percentage year-over-year.

Amazon Elements, which is one of the retailers oldest private labels, is best known for its newborn wipes, but itrecently expanded to include health supplements. The addition seems to have helped, as it was another top performer with $9.5 million in sales during the first half of the year.

Newer private labels rounded out the top ten. For example, Amazons Pinzon bedding and bath products produced $6.6 million, while its snack food line Happy Belly, launched last year, earned over$ 2 million during this same time frame.

More recently, Amazon has been moving into the fashion business, with a growing collection of own-label garb lines. A few of these are already watching traction. Womens attire brand Lark+ Ro, mens dress shirts from Buttoned Down, and staple apparel items from Amazon Essentials all made the top ten.

Meanwhile, children clothing brand Scout+ Ro has considered the most aggressive growth, with a 542 percent increase year-over-year. This growth is tied immediately to the lines expansion over the past year, the line has grown its product selection by fivefold.Other gaining private style labels include mens shoes Franklin& Freeman and womens dres brand Lark+ Ro.

But not all the private labels are insuring increases. Even though bedding and bath brand Pinzon pulled in $6.6 million in the first half of the year, it sold fewer units this year compared with the last, leading to negative 28 percentage year-over-year growth.

The report also dove into conversion rates for Amazons labels, and found that Amazon Elements is stealing the indicate with a 42 percentage conversion rate or four times better than any other Amazon brand.

The report examined individual SKUs, as well, to see which items were the best sellers among the private labels. Fire TV Stick with Alexa Voice Remote came out on top, followed by the black Echo Dot speaker, then several AmazonBasics products. The original Echo and Echo Dot in white also made the top 10. Echo devices presenceon this chart also isnt too surprising these items were Prime Days best sellers, it was reported in July.

Amazon has no intention of slowing its private label business, it seems. A recent Quartz report uncovered a good handful of new trademarks for private label brands that havent yet launched on the retailers site. The reasoning here is obvious private labels have better margins, and will increase Amazons bottom line.

The companys strategy for its private labels differs from brand to brand, however. In some instances, the brands are exclusive for Prime members, while others are broadly available. Brands like Kindle, Echo and Fire are well-known as Amazon products, as are those with Amazon in their name. In fashion, Amazon is concealing its association for the most portion, beyond the everyday wear found in Amazon Essentials. Thats typical for private label style, though Target and Walmart do the same.

But Amazons advantage over brick-and-mortar stores is that it can promote its way labels to shoppers over others, if it chose. Its also poised to launch Prime Wardrobe, a home try-on service, which rumor has it may integrate with Echo Look. It wouldnt be surprising to see it also leveraged to push Amazons own manner brands to customers, either.

1010data doesnt specifically detail its data sourcing due to contractual obligations, but it broadly says that its market analysis involves proprietary information arising from tracking customer purchases offline and online.

Read more:

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.


  • No categories
Register now to get updates on promotions and coupons.
%d bloggers like this: