Amazon is Set to Drop Dozens of In-House Brands

Amazon is set to drop dozens of in-house brands, and many of which you didn’t even know the company owned. Amazon Basic just so you know will be sticking around, but most other brands on the other hand are not.

Amazon to Drop In-House Brands

Amazon to Drop In-House Brands

Amazon is reportedly slashing the number of in-house brands that it offers on its marketplace. The retail giant as you should know now plans on cutting 27 of its 30 private-label clothing brands as it reportedly looks to cut costs and then stave off antitrust scrutiny, as per a report from The Wall Street Journal.

The retail company over the years has created dozens of private-label brands across a variety of departments, most of which operated without Amazon branding, such as Solimo, Wag, and even Mama Bear. However, this very cutback in question will get to leave Amazon with just three in-house clothing brands which are Amazon Essentials, Amazon Collection, and lastly, Amazon Aware.

Amazon Is Ditching Some Private-Label Furniture Brands According To Reports

The WSJ additionally notes that Amazon is reportedly ditching some private-label furniture brands as well, and this is including Rivet and Stone & Beam. Sources that are really close to the situation tell the WSJ that Amazon will however continue to sell products from the now-discontinued brands until they get to run out. Amazon as of 2020, had 243,000 products for sale from more than 45 different private-label brands.

Amazon’s Statement Regarding the Matter

“We always make decisions based on what our customers want, and we’ve learned that customers seek out our biggest brands — like Amazon Basics and Amazon Essentials — for great value with high-quality products at great price points,”, the vice president of Amazon Private Brands, Matt Taddy tells The Verge in an emailed statement. Taddy also adds that the company is “thoughtful” regarding its private brand selection and that it will get to retire any items that “aren’t resonating with customers.”

Amazon’s Decision to Streamline Its Private Label Business

The decision of Amazon to streamline its private label business as you should know comes amidst a possible antitrust lawsuit from the Federal Trade Commission. And while Politico reported in the previous month that the FTC is reportedly readying a lawsuit against the company, the WSJ on the other hand says that Amazon is expected to meet with the agency next week as a “last-rites meeting.”

The private label products of Amazon could still very much be a target of regulatory scrutiny, as the company was reportedly accused of leveraging third-party seller data to create in-house items that got to compete with other brands in the year 2020. The WSJ Last year, reported that Amazon began scaling back the number of in-house products that it sold in a bid to alleviate regulatory pressure.



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