Amazon’s private label business is expected to produce $7.5 billion in revenue this year, climbing to $25 billion by 2022. These figures are based on predictions produced by SunTrust Robinson Humphrey, an investment firm. In order to meet these predictions and to accelerate growth even further, Amazon has invited niche manufacturers to develop new products exclusively for its collection of private brands.
The types of brands that Amazon has been developing in recent years may not jump out as being owned by Amazon, yet they are brands that are shifting sizable numbers of units. These are brands such as: Arabella, Lark & Roe, Mae, NuPro, and Small Parts. These brands feature prominently on Amazon.com.
What is uncertain is how these developments will impact upon third-party sellers and whether the products sold on Amazon by small businesses will continue to feature as highly as Amazon expands its array of its own branded merchandise.
The push for new, exclusive Amazon products the company has announced the “Amazon Accelerator Program”. In addition the firm is seeking a senior product manager for its growing portfolio of private brands. Duties will include managing and planning inventory, identifying business opportunities, and working with the various Amazon divisions to produce new items and services.
Discussing the development with QZ, an Amazon spokesperson provides further details: “Amazon Accelerator creates new opportunities for manufacturers and offers a way for them to launch brands and products directly to Amazon customers. For customers, this program adds products to our assortment and allows us to offer an even wider selection of high quality products at a great value.”
