Happy Belly, Wickedly Prime, and Mama Bear may not sound familiar to consumers, yet, but they soon will be, according to the Wall Street Journal. These are the brands Amazon.com will be adding to its private-label offerings.
The new in-house brands will initially be available to Amazon’s 50-million plus Prime members by the end of May or early June. Some of the new items will likely include nuts, spices, tea, coffee, baby food and vitamins, as well as household items such as diapers and laundry detergents. “We don’t comment on rumors or speculations,” a company spokeswoman said in an email to Reuters.
Store brands have taken a giant leap
Store brands for years were considered the cheaper, somewhat sub-standard alternative to national brand named goods. But those days are gone forever says the Private Label Manufacturers Association. The sale of private-label brands reached $118.4 billion in 2015, amounting to +$2.2 billion over the previous year, setting an all-time record.
Many consumers believe a private-label product from a retailer they are familiar with is far superior to a national brand, and it makes sense that Amazon would take advantage of this perception. Not only is perception important to profit margins, but so is using data-culling.
Using data-culling, Amazon can pinpoint what other products its customers use the most, opening the door to the development of additional private-label offerings. One brand consultant told the Wall Street Journal, according to Newser, “Private label allows them to test out new prices and distinctive flavors with less risk.”
