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Amazon Private Labelers - Amazon's new target

by Niteprowler
3 replies
It had to happen sooner or later. It almost looks as if Amazon has been taking some of the Private Labeling courses that have made the rounds the past year or so.... as Amazon will be rolling out their own Private Label brand of merchandise.

Funny thing is the two products that they are beginning with are two products highlighted by one of the Private Labeler's that was involved with one of the high dollar Private Label courses this past summer. Guess there goes a big chunk of his monthly sales... my guess.

Anyway... here's the story...



Amazon Is Getting Into Private Label Business With Amazon Elements
BY Chris Ciaccia Follow |
12/04/14 - 09:42 AM EST |


NEW YORK -- Amazon (AMZN) is getting into the private label business, announcing Amazon Elements, a new line of premium, offering everyday items that are available only to Amazon Prime members as the company seeks to capture even more of consumers' spending dollars.

"Our obsession with customers and drive to continuously innovate on their behalf has led us to create Amazon Elements. The two things customers told us they want are premium products that meet their high standards, and access to information so they can make informed decisions, Amazon Elements offers both," said Sunny Jain, Amazon.com Consumables Vice President in the press release. "We've leveraged our strengths in technology to bring customers an unprecedented level of information about these products, all with just the click of a button. We're excited to offer Amazon Prime members added selection, beginning with diapers and baby wipes."

Must Read: Why Jeff Bezos Wants You to Be Patient With the Fire Phone

The first products sold as part of Amazon Elements are diapers and baby wipes, part of what Amazon deems "essentials with transparent origins."
#amazon #labelers #private #target
  • Profile picture of the author Procel
    This will be a bite out of some net marketers' hides, and it will get bigger. I'm not sure if this is a good move or a bad move on Amazon's part. By mopping up the money that 'small fry' private labelers were making through Amazon, they get all that money but they lose the synergy of having all those independent marketers who were more or less working for them for free. They were making a great deal of money off of the small operators ingenuity and efforts. Now they get the whole pie, but will they be getting all of a smaller pie?

    We shall see what happens.
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    • Profile picture of the author kindsvater
      Dangerous territory. Sellers are not going to like the competition and Amazon has lost a lot of money pursuing non-core strategies.

      It is one thing for a physical store like Target to offer a generic or private label product (which can be made by a brand anyway for the company) because customers are often "captive" and not going to drive 10 extra miles to visit a different store just for one product with a brand name.

      The Internet is different with options a click away.

      Big retailers pulling their goods off Amazon would hurt, but is unlikely, Rather, they will lower their price and history shows brands can clobber generics in this type of battle.

      Amazon's attempts to produce its own products, such as the Fire, have been a money pit. Spending money to create its own line of products is likely to be a similar money pit.

      This is one reason why Amazon, despite grossing eye-popping revenue, has not earned much or even lost money year after year.

      As an Amazon affiliate - more products to promote!

      .
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  • Profile picture of the author allseowork
    This is a really awesome news for the affiliates, not sure whether Amazon will profit from it in the long term.
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