Amazon has big Opportunity to Grow by Selling its Own Brands

INTERNATIONAL NEWS

Amazon has big Opportunity to Grow by Selling its Own Brands


October 13 , 2017



The e-commerce giant offers everything from burgers to beauty products under its collection of 34 private-label brands. Combined, sales of those products could add $1 billion to its gross profit by 2019. Amazon’s private label effort is still "early" in its development, but the company has a big opportunity, especially if it pans out for Amazon as it has for its competitors. This is "why private label is exciting, as it’s large and profitable for other leading retailers.

If Amazon grew its private label business to 5% of its total retail sales over the next two years then it generated $250 million in revenue from private label goods, or about 0.15% of its gross merchandise sales. Amazon’s private label brands extend across nine product categories, which includes apparel brands such as Lark & Ro; Amazon Basics, which the company uses for a range of ever day products including luggage and batteries#59; and home furnishings brand Strathwood.